475 Tax Deductions for All Small Businesses, Home Businesses, and Self-Employed Individuals

Preface A Treasure Hunt xi Chapter 1: Introduction to Tax Deductions 1 Relax 1 Who Is This Book For? 2 Business Legal Structure 2 How to Use This Book to Your Best Advantage 3 Expense Categories 5 Is Every Possible Tax Deduction Listed? 6 Isn’t This What You Pay Your Accountant For? 6 Will Your Deductions Trigger an Audit? 7 When in Doubt, Deduct 8 Tax Loopholes and Tax Secrets 9 Federal versus State Laws 9 Keeping Records 9 When Can You Take a Deduction? 10 Cash Method versus Accrual Accounting 10 Structuring—and Wording—Transactions to Your Best Tax Advantage 11 Timing Transactions to Your Best Tax Advantage: Year-End Strategies 12 Year-End Payments 12 Paying Business Expenses: You or Your Business? 13 Multiple Businesses 13 Home-based Businesses 14 On-Demand Workers 15 Hobby Income and Losses 17 “I Wish I Had This Book Last Year”: Amending Prior Years’ Tax Returns 18 One Last Caution 18 Chapter 2: Terminology 19 Self-employed Individuals and Independent Contractors 19 Employer / Employee 20 What Is a Tax Deduction? 20 Tax Write-Off 21 Personal versus Business 21 Capitalized Expenses 21 “Significant” Costs 22 Customers, Clients, and Etc. 22 IRS Audits 23 Tax Credits versus Tax Deductions 23 Chapter 3: The Four Basic Rules for All Expenses 25 Rule 1: Business Related 26 Rule 2: Ordinary Expenses 26 Rule 3: Necessary Expenses 27 Rule 4: Not “Lavish or Extravagant” 27 And One More . . . The $25 Million Dollar Rule 28 Chapter 4 475 Tax Deductions, A to Z 29 About the Author 233