Table of Contents
Preface vii
Introduction xiii
Part 1 Organization 1
1 Business Organization 3
2 Tax Year and Accounting Methods 40
3 Recordkeeping for Business Income and Deductions 58
Part 2 Business Income and Losses 71
4 Income or Loss from Business Operations 73
5 Capital Gains and Losses 107
6 Gains and Losses from Sales of Business Property 128
Part 3 Business Deductions and Credits 143
7 Employee Compensation: Salary, Wages, and Employee Benefits 145
8 Travel and Entertainment Expenses 182
9 Car and Truck Expenses 212
10 Repairs, Maintenance, and Energy Improvements 242
11 Bad Debts 260
12 Rents 273
13 Taxes and Interest 284
14 First-Year Expensing, Depreciation, Amortization, and Depletion 300
15 Advertising Expenses 339
16 Retirement Plans 347
17 Casualty and Theft Losses 388
18 Home Office Deductions 403
19 Medical Coverage 423
20 Deductions and Tax Credits for Farmers 444
21 Domestic Production Activities Deduction 456
22 Miscellaneous Business Deductions 464
23 Roundup of Tax Credits 510
Part 4 Tax Planning for Your Small Business 523
24 Income and Deduction Strategies 525
25 Tax Strategies for Opening or Closing a Business 542
26 Tax Strategies for a Sideline Business 557
27 Tax Strategies for Multiple Businesses 562
28 Alternative Minimum Tax 568
29 Other Taxes 575
30 Filing Tax Returns and Paying Taxes 597
31 Retirement and Succession Planning 611
32 Working with CPAs and Other Tax Professionals 618
33 Handling Audits with the IRS 623
Appendix A Information Returns 627
Appendix B Tax Penalties 636
Appendix C Checklist of Tax-Related Corporate Resolutions 643
Appendix D List of Dollar Limits and Amounts Adjusted for Inflation 646
Index 651