Surprisingly Simple: Independent Contractor, Sole Proprietor, and LLC Taxes Explained in 100 Pages or Less
Format: PDF / Kindle (mobi) / ePub
Find all of the following, explained in plain-English with no legal jargon:Business Taxation 101: A brief primer on tax topics in general, especially as they apply to businesses.
Home Office Deduction: How to ensure you qualify for it and how to calculate it.
Estimated Tax Payments: When and how to pay them, as well as an easy way to calculate each payment.
Self-Employment Tax: What it is, why it exists, and how to calculate it.
Business Retirement Plans: What the different types are, and which one is best for you.
Numerous Business Deductions: Several deductions explained in detail, including how to make sure you can qualify to take them and how to maximize them.
Audit Protection: Learn what records you need to keep (and how long to keep them) in order to protect yourself in case of an audit.
trip. EXAMPLE: You and a friend (who also happens to be a client) take a five-day trip to Hawaii. Over the five days, you spend most of the time at the beach, but you do discuss business over lunch each day. Given that your trip is primarily for personal reasons, the trip will be nondeductible. If your trip is outside the United States and is exclusively for business, the same rules apply as if it were within the U.S. (That is, the entire trip is deductible, with the exception of 50% of
your meal costs.) If your trip is outside the U.S. and is primarily for business purposes, the same rule applies as above, in that you can deduct only the business-related expenses. However, you must also remove from your deduction a portion of the actual transportation costs. The amount of the transportation costs that you can deduct is determined by allocating the transportation costs to business use and to personal use based upon the number of days spent for each purpose. EXAMPLE: Your
the plan. It must not pay for items that would be covered under Medicare, except when the contract simply provides a per diem amount of coverage without regard to expenses. It must provide that dividends and refunds (other than refunds from the death of the insured or from cancellation of the contract) may be used only to reduce future premiums or increase future benefits. It must only provide coverage of qualified long-term care services. (The primary requirements for qualified long-term care
the last decade, more and more business owners have chosen to work out of their homes. How to Know if You’re Qualified For the purpose of qualifying for the home office deduction (technically known as the “deduction for business use of your home”), the area in question does not need to have a physical barrier from the rest of your home. For instance, your home office could be one half of a spare bedroom. For the most part, in order to be able to deduct expenses related to your home
Income Tax Basics In most areas of study, it’s essential to have a good grip on the basics before trying to tackle the more advanced concepts. Tax law is no different. Before getting into the tax topics specific to self-employed taxpayers, it’s important to have a solid understanding of some general tax terminology as well as a few basic tax concepts. Deductions, Exemptions, and Credits Many taxpayers are confused as to the difference between deductions, exemptions, and credits. In