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• Forms of Business
  • Sole Proprietorships
    • What Is a Sole Proprietorship?
    • Licensing Requirements
    • Tax Identification Numbers
    • Tax Status of a Sole Proprietor
    • Estimated Taxes
    • Husband and Wife As Co-Sole Proprietors
    • Community Property Exception
    • Community Property States
    • Schedule C, Profit or Loss from Business
    • More Than One Business
    • Self-Employment Tax
    • Taking Money Out of Your Business
    • Workers' Compensation Insurance
    • Advantages of a Sole Proprietorship
    • Disadvantages of a Sole Proprietorship
• Partnerships
  • What is a Partnership?
  • Forming a Partnership
  • Types of Partnerships
  • Partnership Interest
  • Articles of Partnership
  • Workers' Compensation Insurance
  • How Partners Are Taxed
  • Licensing Requirements for Partnerships
  • Tax Identification Number for a Partnership
  • Reporting Income and Losses of a Partnership
  • Taking Money Out of a Partnership
  • Advantages of a Partnership
  • Disadvantages of a Partnership
• Corporations
  • What Is a Corporation?
  • Ten Attributes of a Corporation
  • Tax Identification Numbers for a Corporation
  • Protecting Your Personal Assets
  • The Corporate Records Book
  • The Incorporation Process
  • Types of Corporations
  • Taking Money Out of a Corporation
  • Advantages of a Corporation
  • Disadvantages of a Corporation
  • Transferring Property Into a Corporation
  • Documents Used to Transfer Property Into a Corporation
  • Leasing and Licensing Property to a Corporation
  • Opening a Corporate Bank Account
  • Valuation of Property Transferred Into a Corporation
  • Section 351(a)-Tax-Free Exchange
  • Section 351(b)-Partially Taxable Exchange
  • What is the Dividends Received Deduction?
  • How a Corporation Handles Capital Gains and Losses
  • Corporate Tax Rates
• S corporations
  • What is an S corporation?
  • What is a Pass-Through Entity
  • Legal Status of an S corporation
  • Advantages of an S corporation
  • Disadvantages of an S corporation
  • S corporation Capital Accounts
  • Becoming and S corporation
  • Steps to Becoming an S corporation
  • Filing Deadlines
  • Qualifying for S corporation Status
  • Tax Reporting for an S corporation
  • When an S corporation May Be Taxed
  • State Taxes and S corporations
  • Taking Money Out of an S corporation
  • Legal and Tax Aspects of S corporations and C corporations
  • Deducting Health Insurance Premiums
  • How to Reduce FICA Your FICA Taxes
  • Deducting S corporation Losses
  • Passive Activity Rules
  • What Are At-Risk Rules?
  • Your Tax Basis
  • Your Stock Basis
  • Adjusting Your Stock Basis
  • Why Annual Stock Basis Adjustments Are Made
  • Your Loan Basis
  • Borrowed Funds Used in the Business
  • Adjusting Your Loan Basis
  • Reducing Your Tax Basis In the Correct Order
  • Restoring Your Tax Basis In the Correct Order
• Limited Liability Company
  • What is a Limited Liability Company?
  • Legal Implications of Operating as a Limited Liability Company
  • Reasons for LLC Popularity
  • Classification of LLCs
  • Making a Business Classification Election
  • Tax Identification Numbers for and LLC
  • Tax Filing for a Limited Liability Company
  • LLC versus S corporation
• Tax Identification Numbers
  • Federal Employer Identification Number (Sole Proprietorships)
  • Federal Employer Identification Number-Continued (Partnerships and LLCs)
  • Federal Employer Identification Number-Continued (Corporations)
  • Applying for a Federal Employer Identification Number
  • Sales Tax Number
  • State Withholding Number
  • State Unemployment Account Number
  • Getting a Tax I.D. Number From Others
  • Form W-9
• When Form 1099 Must Be Filed
• IRS Penalties
• Backup Withholding
• Accounting Methods
  • What Is an Accounting Method?
  • Types of Accounting Methods
  • The Cash Method
  • Expenses Paid By Credit Card
  • Expenses Paid Via Pay-By-Phone Payments
  • Prepaid Interest: Individuals versus Businesses
  • Who uses the cash method?
  • Can you use the cash method if you carry inventory for resale?
  • Who may not use the cash method?
  • Constructive Receipt of Income
  • Using an agent and Constructive Receipt
  • The Accrual Method
  • Determining When Income is Earned and Expenses are Incurred
  • All events test
  • Economic performance test
  • Hybrid Method
  • Advantages of the Cash Method
  • Disadvantages of the Cash Method
  • Advantages of the Accrual Method
  • Disadvantages of the Accrual Method
  • Using Both the Cash and Accrual Methods
  • How to Elect an Accounting Method on Schedule C
  • More Than One Business
  • Changing Your Accounting Method
  • Examples of constructive receipt
  • Cancellation of debt
  • Bounced Checks Under the Cash Method
  • Receiving Advance Payments Under the Cash Method
  • Guaranty or Warranty Contracts Under the Cash Method.
  • The General Rule When Prepaying Expenses Under the Cash Method
  • The 12-Month Rule When Prepaying Expenses Under the Cash Method
  • The Accrual Method Exception Under Revenue Procedure 2002-28
  • Businesses That Could Benefit From Revenue Procedure 2002-28
  • Form 3115, Application for Change in Accounting Method
  • What Are the Uniform Capitalization Rules?
  • What it Means to Capitalize a Cost
  • Inventoriable Items
  • Valuing Inventoriable Items
  • Revenue Procedure 2002-28: The Dollar Test
  • Eligible Business Activity Test
  • Text of Reg. Sec. 1.162-3
  • List of Taxpayers Allowed to Use the Cash Method
  • List of taxpayers Not allowed to use the cash method
• Income
  • What is Income?
  • What is Adjusted Gross Income (AGI)?
  • Adjusted Gross Income May Limit Certain Deductions
  • What is Taxable Income?
  • Reporting Income for a Service Business
  • Figuring Gross Income Under the Cash method
  • Figuring Net Income for a Service Business
  • Reporting Income for a Merchandise Business
  • Cost of Goods Sold for a Merchandise Business
  • Reporting Income for a Manufacturing Business
  • Cost of Goods Sold for a Manufacturing
  • Reporting Income for a Manufacturing Business
  • Rental Income
  • Bartering Income
  • Debt Cancellation Income
  • Investment Income
  • Miscellaneous Income
  • Converting Personal Use Property to Business Use
  • Your Tax Year
    • Choosing a Tax Year
    • Calendar Year
    • Fiscal Year
    • What is a 52-53-Week Year?
    • Seasonal Business
    • What is a Short Tax Year?
    • Inventory Considerations
  • Your Books and Records
    • Audit Proofing Your Deductions
    • Documents Supporting Income
    • Documents Supporting Expenses
    • How Long Should You Keep Tax Records?
    • Periods of Limitations
    • Retaining Property Records
    • Retaining Tax Returns
  • Passive Activity and At-Risk Rules
    • Who Do Passive Activity Rules Apply To
    • Investors
    • Purpose of Passive Activity Rules
    • What is a Passive Activity?
    • Tax Forms You May Need to File
    • Material Participation
    • Proof of Participation
    • Qualifying for Material Participation
    • Seven Material Participation Tests
    • Significant Participation Passive Activities
    • Passive Income and Losses
    • Rental Real Estate
    • Special $25,000 Allowance for Real Estate Nonprofessionals
    • Portfolio Income
    • Portfolio Income and Passive Losses
    • Interest on Accounts Receivable
  • Small Business Stock
    • Qualifying Small Business (QSB) Stock-Section 1202
    • Excluding 50% of Gain on Qualified Small Business (QSB) Stock
    • The rules for Taking the 50% Gain Exclusion
    • Qualifying as Small Business Stock
    • Reporting the Section 1202 Gain and the Exclusion
    • Rolling Over the Gain on Small Business Stock to Small Business stock
    • Reporting a Rollover of Gain From Qualified Small Business Stock
  • Section 1244 Losses on Small Business Stock
    • Deducting a Loss on Small Business Stock?
    • The Tax Benefit Under Section 1244
    • Who Can Claim an Ordinary Loss on Section 1244 Stock?
    • Where to Claim a Section 1244 Loss
    • Section 1244 Deduction Limits
    • Qualifying as Section 1244 Stock
    • Protecting Your Section 1244 Deduction

To Table of Contents

Business Deductions

• Business Losses and Net Operating Losses (NOLs)
  • Carryback and Carryforward of NOLs
  • Items that May Cause a Net Operating Loss
  • Who Can Claim an NOL?
  • How Do You Know if You Have an NOL?
  • Schedule A of Form 1045
  • Why a Separate Computation is Required for an NOL
  • Items That May Cause an NOL
  • Items Not allowed in Figuring NOLs
  • Deducting an NOL
  • How to Carry Back an NOL
  • Carryback and Carryforward Periods
  • Eligible Loss and NOLs
  • Waiving the Carryback Period for NOLs
  • Recalculating Your Tax Liability
  • Marital Status and NOLs
  • How to Claim an NOL Refund
  • Example of NOL Computation
  • Car Expenses
    • Deducting Car and Truck Expenses
    • The Mileage Allowance Method?
      • Items You Can Deduct in Addition to the Mileage Allowance
      • Who May Not Use the Mileage Allowance Method
      • Schedule C and Car Expenses
      • Mileage Log
      • Mileage Sampling
      • Switching From the Mileage Allowance Method to the Actual Expense Method
      • Leased Vehicles
      • Where to Claim the Mileage Allowance
      • Employees and Car Expenses
    • The Actual Expense Method?
      • Deductible Car Expenses
      • 100% Business Use of Vehicle
      • Business and Personal Use of Vehicle
      • Changing From Personal Use to Business Use During the Year
      • Sales Tax
      • Personal Property Tax Included in Vehicle Registration Fee
  • Hybrid Vehicles
    • Phaseout Rule for Hybrid Vehicles
    • Qualifying for the Hybrid Credit
    • Phaseout of Hybrid Credit
    • Alternative Minimum Tax (AMT)
  • Electric Cars
    • Annual Depreciation Limits for Electric Cars
  • Audit Proofing Your Car Deduction
    • Tracking Business Miles
    • Estimates of Car and Truck Expenses
    • Mileage Sampling
  • Should You Sell or Trade in Your Vehicle?
    • Nontaxable Exchange (trade-in old vehicle)
    • Taxable Sale of a Car
    • Computing Basis of New Vehicle When Trading In Old Vehicle
  • Depreciating Your Vehicle
    • Six Things to Know About Depreciating Your Car
    • Depreciation Methods
    • Depreciation Conventions
    • Type of Vehicle Being Depreciated
    • Heavy Trucks, Vans, and SUVs (weight-rated over 6,000 pounds)
    • Passenger Cars (weight-rated at 6,000 pounds or less unloaded)
    • Light Trucks, Vans, and SUVs (weight-rated 6,000 pounds or less fully loaded)
    • Electric Cars-Depreciation Limits
    • Improvements Made to Vehicle
    • Depreciation Recapture Rule
  • Depreciating Property
    • What is Depreciation?
    • Types of Property
    • Property that May be Depreciated
    • Patents and Copyrights
    • Property that May Not be Depreciated
    • Listed Property
    • Investment Use Property
    • Managing Your Investments
    • Depreciation Methods (MACRS)
    • Form 4562, Depreciation and Amortization
    • How the General Depreciation System and Alternative Depreciation System Differ
    • Depreciation Conventions
    • Recovery Periods, Class Life, Examples of Property
    • Leasehold Improvements
    • How to Compute Depreciation
    • Two Examples: Computing Depreciation-Example 1: Accelerated MACRS
    • How to Claim Depreciation
    • What is the First-Year Expensing Deduction (also called the Section 179 deduction)?
    • Eligibility Requirements for Claiming First-Year Expensing
    • First-Year Expensing Deduction Restrictions and Limitations
    • Electing First-Year Expensing
    • How to Claim the First-Year Expensing Deduction
    • What Are Section 197 Intangibles?
    • Items that Must be Amortized
  • Health Insurance Deduction for the Self-Employed
    • What is the Self-Employed Health Insurance Deduction?
    • Deductible Health Insurance Premiums
    • Who Can Claim the Health Insurance Deduction
    • Seven Points to Keep in Mind About Deducting Health Insurance Premiums
    • The Self-Employed Advantage
    • Where to Claim the Health Insurance Deduction
    • Qualified Long-Term Care Insurance Policy for Self-Employed Persons
  • Home Office Deduction
    • What is the Home Office Deduction?
    • How to Claim the Home Office Deduction
    • How the Home Office Deduction Works
    • Ordinary and Necessary Business Expenses
    • Qualifying for the Home Office Deduction
    • Principal Place of Business Test
    • Administrative and Management Rule
    • Historical Note-Home Office Administrative and Management Rule
    • Using Outside Services
    • Employees With a Sideline Business
    • Deducting Storage Space for Business Products
    • Setting Up Your Home Office
    • Separate Business Structure
    • Steps for Computing the Home Office Deduction
    • The Home Office Deduction Computation
    • Direct Expenses
    • Indirect Expenses
    • How to Allocate Indirect Residential Costs to Your Home Office
    • Form 8829, Expenses for Business Use of Your Home
    • Example  of Home Office Deduction Computation
  • Day-Care Services
  • List of Schedule C Expenses
  • Meals and Entertainment
    • What Are Meal and Entertainment Expenses?
    • The Rules for Deducting Meal and Entertainment Expenses
    • Two Restrictive Tests for Meals and entertainment Expenses
    • The Associated Test (meals and entertainment)
    • Audit Proofing Your Meal and Entertainment Expenses
    • Entertaining at Home
    • Entertainment Costs of a Spouse
    • Entertainment Facilities
    • Tickets to Events
    • Skybox Rental
    • Club Dues
    • Trade Association Meetings
    • Business Gifts
    • Gift or Entertainment?
    • Taking Turns Paying the Bill
    • How Much Can You Deduct?
    • Transportation Costs
    • Exceptions to the 50% Limitation Rule
    • Where to Deduct Meal and Entertainment Expenses
    • Deducting Qualified Plan Awards
    • Deduction Limit for Qualified Plan Awards
    • Non-Qualified Plan Awards
  • Startup Costs
    • What Are Startup Costs?
    • Qualifying Startup Costs
    • Two Categories of Startup Costs
    • Purchasing an Active Trade or Business
    • Costs of Not Going Into Business
    • How to Make the Election to Deduct start-up Costs
    • How to Deduct Startup Costs and Organizational Costs
    • How to Claim Startup Costs
  • Organizational Costs
    • Startup Costs versus Organizational Costs
    • Qualifying Organizational Costs
    • Nonqualifying Organizational Costs
    • How to Make the Election to Deduct Organizational Costs
    • Deducting Organizational Costs
    • How to Claim Organizational Costs
  • Travel Expenses
    • What Are Travel Expenses?
    • Who May Deduct Travel Expenses?
    • Items Included in Travel Expenses
    • Tax Terms You Need to Know (Ordinary and Necessary Expenses)
    • Tax Terms You Need to Know (Tax Home Defined)
    • Tax Terms You Need to Know (Tax Home Example)
    • Tax Terms You Need to Know (Transient, Away From Home Test)
    • Personal Expenses
    • Expenses of a Spouse, Dependent, or Other Individual
    • Entertainment Expenses of Non-Employees
    • Entertainment Expenses of Non-Employees-Example
    • Employee Travel Expenses
    • Employer Error Reporting Travel Expense Reimbursement on Form W-2
    • Employee Accountable Plan
    • Commuting Costs
    • When You May Deduct Commuting Costs
    • Temporary Work Locations and Commuting Expenses
    • Temporary Work Location-Example
    • What if Your Expectations for the Length of Time to Work Changes?
    • Professionals Traveling to Clients' Sites
    • Business Conventions and Seminars
    • Investment Conventions
    • Video Tapes Received at a Business Discussion
    • IRS Meal Allowance
    • If Employer is a Relative
    • Daily Meal Allowance Amount
    • Travel Expense Records You Must Keep
    • Transportation Industry Workers
    • Claiming the IRS Meal Allowance
    • Travel By Cruise Ship
    • Business-Vacation Trips Inside the U.S.
    • Business-Vacation Trips Outside the U.S.

To Table of Contents

Business Tax Credits

• Tax Credit versus Tax Deduction
• Comparing a Tax Credit to a Tax Deduction
• The General Business Credit
• Six Points to Keep in Mind About the General Business Credit
• About Form 3800
• Credits Included in the General Business Credit
• Credits Not Reported on Form 3800

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Schedule C

• The Purpose of Schedule C
• Who Must File Schedule C?
• More Than One Business
• List of Schedule C Expenses
• Explanation of Certain Schedule C Expenses
• Deducting a Loss Reported on Schedule C
• Preparing Schedule C
• Schedule C-Page 1, Top Section
• Schedule C-Page 1, Part I: Income
• Schedule C-Page 1, Part II: Expenses
• Deducting the Home Office Deduction on Schedule C
• Schedule C and Form 1040
• Schedule C and Closing a Sole Proprietorship
• Reopening Your Business in a Later Year
• Closing Your Business When You Have Employees

To Table of Contents

Business Taxes

• Estimated Taxes
  • Who Pays Estimated Taxes
  • Who Does Not Pay Estimated Taxes?
  • When You May Have to Pay Estimated Taxes
  • Figuring Estimated Taxes
  • Estimating Your Taxes From Scratch
  • The Safe Harbor Approach to Estimating Your Taxes
  • Installment Dates For Estimated Tax Payments
  • Estimating Taxes When Income is Received Later in the Year
  • How to Pay Estimated Taxes
  • Married Taxpayers
  • Separate Returns and Joint Returns and Estimated taxes
  • Figuring Your Share of the Tax on a Joint Return for Estimated Tax Purposes
  • Higher Income Taxpayers and Estimated Taxes
  • Resident and Nonresident Aliens and Estimated Taxes
• Excise Taxes
  • What Are Excise Taxes?
  • Tax Credit or Refund of Excise Taxes
  • Claiming a Refund of Excise Taxes
  • Federal Excise Tax Refund on Long Distance Service
  • Forms You May Have to File
  • What is ExSTARS?
  • Who is Required to Use ExSTARS?
  • When to File
  • How to File
  • Why Filing is Required
  • 637 Registration Program
  • Excise Tax On-Line Exchange (ExTOLE)
  • Electronic Data Interchange (EDI)
• Self-Employment Taxes
  • What is Self-Employment Tax?
  • Self-Employment Tax Rate
  • Earnings Limitation for Social Security Tax
  • Income From a Job and Self-Employment
  • Who Pays Self-Employment Tax?
  • Statutory Employees and Self-Employment tax
  • What are Net Earnings from Self-Employment?
  • Computing Net Earnings From Self-Employment-Schedule C Filers
  • When to Pay Self-employment Tax
  • More Than One Business
  • Net Operating Loss Deduction
  • Personal Exemption and Self-Employment Tax
  • Items Not Included in Self-Employment Income
  • When to File Schedule SE
  • Deduction for One Half of Self-Employment Tax
  • Deductions for Retirement Plans
  • Married Couples and Self-Employment Tax
  • Community Property States
  • Retirees and Self-Employment Tax
  • Business Interruption Insurance Proceeds

To Table of Contents

Filing Taxes

• What is IRS E-File?
• E-Filed Returns Top 76 million!
• Direct Deposit Options
• How Tax Information is Transmitted When You E-File
• Three Options for E-filing
• What is Free File?
• Who Qualifies for Free-Filing
• Two Ways to Sign an E-Filed Return
• IRS Proof of E-Filing
• Errors On E-Filed Return
• Receiving Your E-Filed Refund
• If You Owe Tax
• Electronic Filing Options for Businesses and Self-Employed
• 3 Steps to E-Filing
• Tax Forms You May E-File
• Tax Forms You Cannot e-File

To Table of Contents

Paying Taxes

• Electronic Tax Payments
• www.eftps.gov
• www.eftps.gov/eftps/enrollments/newTaxpayer.do
• Paying Taxes
  • Electronic Payments
  • Scheduling Estimated Tax Payments
  • Authorize an Electronic Funds withdrawal
  • Make Past Due Payments
  • Trust Fund Recovery Penalty
• E-Pay Options
  • E-Payment Option 1: Electronic Funds Withdrawal
    • Advantages of Paying by Electronic Funds Withdrawal
    • Setting Up an Electronic Funds Withdrawal
    • How to Check on Your Payment
• E-Payment Option 2: Paying With a Credit Card
  • Making a Payment or Verifying a Previous Payment
  • Advantages of Paying by Credit Card
• E-Payment Option 3: Electronic Federal Tax Payment System (EFTPS)
• Express Enrollment-New Businesses and Required Taxpayers
  • Express Enrollment for Federal Tax Deposit (FTD) Coupon Payers
  • Why Express Enrollment Was Designed
  • Enrolling in EFTPS
• E-Payment Options for Individuals
  • Can't Pay Your Taxes on Time?
  • Applying for an Installment Agreement
  • IRS Fees for Setting Up Installment Agreement
  • Interest and Penalties
  • Pay by Credit Card

To Table of Contents

Retirement Plans

• Retirement Plan Basics
  • Why Have a Retirement Plan?
  • Build Wealth
  • Slash Taxes
  • Government Incentives
  • How Sole Proprietors and Partners are Classified for Retirement Plan Purposes
  • Types of Retirement Plans
  • Payroll Deduction IRAs
  • Choosing a Financial Institution
• SEP Plans
  • SEP-IRA Contributions
  • Deducting SEP-IRA Contributions
  • Reporting Requirements for SEP-Plans
  • Timing Deductions
  • Who Contributes to SEP-IRA Accounts?
  • Can Property be Contributed to a SEP-IRA?
  • Vesting in a SEP-IRA
  • No Strings Attached to SEP Contributions
  • Time Limit for SEP Contributions
  • No Contribution Requirement for SEP-IRAs
  • How Contributions Are Made
  • SEP-IRA Contribution Limits
  • What is Compensation?
  • Self-Employed Person's Compensation
  • Income Taxes, Social Security and Medicare Taxes
  • Excise Tax on Excess Contributions
  • Carryover of Nondeductible Contributions
  • Form W-2 Reporting
  • Deduction Limits for Contributions to SEP-IRAs
  • Where to Deduct SEP Contributions
  • Due Date for Making Deductible Contributions
  • Deductible SEP-IRA Contributions
  • Special Computation for Self-Employed Persons
  • Three Steps to Setting Up a SEP Plan
  • Eligible Employees
  • Excludible Employees
  • 17 Things to Know About SEP Plans
  • Credit for Small Employer Pension Plan Startup Costs
  • Credit for Qualified Retirement Savings Contributions
• SARSP Plans
• SIMPLE Plans
  • Who Can Participate in a SIMPLE Plan?
  • Setting Up a SIMPLE Plan
  • SIMPE IRAs
  • Eligible Employees
  • When to Set Up a SIMPLE Plan
  • SIMPLE Plan Salary Reduction Contribution Limits
  • Who Contributes to a SIMPLE IRA?
  • Matching and Nonelective Contributions
  • Choosing a Lower Matching Percentage
  • Nonelective Contributions
  • How Much Can a Nonelective Contribution Be?
  • Maximum Compensation Used for Figuring Contribution
  • Time Limit for Employer to Deposit Salary Reduction Contributions
  • Form W-2 Reporting for SIMPLE IRA Contributions
  • Deducting Matching and Nonelective Contributions
  • Timing Deductions for Contributions
  • Two Ways To Set Up a  SIMPLE Plan
  • After the SIMPLE Plan is Set Up
  • Eligible Employees
  • Excludible Employees
  • When To Set Up a SIMPLE IRA Plan
  • Notification Requirement
  • Election Period
  • SIMPLE 401 (k) Plans
  • Distributions, Rollovers, and Withdrawals
  • Credit for Small Employer Pension Plan Startup Costs
  • Credit for Qualified Retirement Savings Contributions
• Qualified Plans
  • What Are Qualified Plans?
  • Deducting Plan Contributions
  • Who Can Set Up a Qualified Plan
  • Professional Assistance
  • Qualification Rule for Qualified Plans
  • Qualified Plan Participation Rules
  • Restrictions on Conditions of Participation in Qualified Plan
  • Minimum Vesting Standards for Qualified Plans
  • Two Kinds of Qualified Plans
    • Defined Contribution Plan
      • Funding Requirement for Defined Contribution Plans
      • Maximum Deductible Percentage for Contributions
    • Defined Benefit Plan
      • Funding Requirement for Defined Benefit Plans
      • Annual Benefit Limit Under a Defined Benefit Plan
  • 401(k) Plans
  • SIMPLE 401(k) Plans
  • Matching Contributions
  • Nonelective Contributions
  • Limit on Elective Deferrals
  • Catch-Up Contributions for a 401(k) Plan
  • Employee Compensation Limit
  • Form W-2 Reporting for Elective Deferrals
  • Automatic Enrollment in a 401(k) Plan
  • Limits on Contributions and Benefits
  • Contribution Restriction for Self-Employed Persons
    • Figuring a Self-Employed Person's Deductible Contributions
    • Special Computation for Self-Employed Persons
  • Timing Deductible Contributions
  • Promissory Notes
  • Self-Employed Persons
  • Overall Annual Contribution Limit
  • Reminders
  • Master or Prototype Plans
  • Individually Designed Qualified Plan
  • Setting Up a Qualified Plan
  • Credit for Small Employer Pension Plan Startup Costs
  • Credit for Qualified Retirement Savings Contributions
  • Funding Requirements for Defined Benefit Plans and Money-Purchase Plans
  • Reporting Requirements for Qualified Plans
  • Discrimination Tests
  • Top-Heavy Plan Requirements
  • Pension Benefits Guarantee Corporation
  • Avoiding Inadequate Funding Problems For Defined Benefit Plans
  • Bonding Requirement for Qualified Plans

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Hiring Employees

• Employer's Obligations
• Types of Workers
• Employee Defined
• What Are Common Law Employees?
• Not Sure How to Classify Someone?
• What Are Statutory Employees?
  • Withholding Taxes for Statutory Employees
  • Statutory Employees Have Two Options for Reporting Income
  • What Are Statutory Nonemployees?
    • Withholding Taxes
    • Schedule C and Self-Employment Taxes for Statutory Nonemployees
• State New Hire Registry
  • Employer Reporting Requirement for New Hires
• Earned Income Credit
  • Maximum Advance Earned Income Credit Payment
  • What is the Earned Income Credit?
  • Advance Earned Income Credit Payments
  • Form W-5
  • Maximum Advance Earned Income Credit Payment
  • Withholding Taxes
  • Advance Earned Income Credit Payments Treated as Tax Deposits
  • How Advance Earned Income Credit Payments are Provided to Employees
  • Reporting Advance Earned Income Credit Payments
  • Answering Employee Questions About Advance Earned Income Credit Payments
• Workers' Compensation
  • What is Workers' Compensation Insurance?
  • Who is Required to Carry Workers' Compensation Insurance?
  • Self-Employed Persons
• Federal Employment Taxes
  • Withholding Employment Taxes
  • Employment Tax Forms Used When Hiring
  • Annual Employment Forms
• Employment Verification
  • E-Verify

To Table of Contents

Payroll Taxes

• Payroll Withholding Taxes
  • Who Pays Social Security and Medicare Taxes?
  • Social Security and Medicare Tax Rates
  • Wage Base for Social Security Taxes
  • Employer's Liability for Employment Taxes
  • State Income Taxes
• State Unemployment Taxes (SUTA)
  • Employer's SUTA Experience Rate
  • Unemployment Insurance Claims
• Depositing Employment Taxes
  • Nonpayroll Tax Deposits
  • When to Deposit Employment Taxes
  • When To Determine Your Employment Tax Deposit Schedule
  • How to Determine Your Employment Tax Deposit Schedule
  • How to Deposit Employment Taxes
  • When an Insufficient Employment Tax Deposit May Not Cause a Penalty
  • Payroll Tax Payment With Return
• Federal Unemployment Tax (FUTA)
  • Who Pays Federal Unemployment Taxes (FUTA)?
  • FUTA Tax Deposits
  • When You Can Pay FUTA Taxes Annually With Form 940
  • Payments Exempt from FUTA Tax
• Advance Earned Income Credit Payments
  • What Are Advance Earned Income Credit Payments?
  • Withholding Taxes and Advance Earned Income Credit Payments
  • Advance Earned Income Credit Payments Treated as Tax Deposits
  • Reporting Advance Earned Income Credit Payments
• Non-payroll Withholding Taxes
  • Taxes Withheld From Income Distributions Not Related to Employment
• Depositing Payroll Taxes versus Reporting Payroll Taxes
• Employment Tax Forms
  • Employment Tax Forms Explained
• Zero Wage Return
• Household Employees
  • Schedule H, Household Employment Taxes
  • Taxes Reported on Schedule H
  • Schedule H and Form 1040
  • Filing Extension and Schedule H
  • Filing Schedule H When You're Not Required to File a Tax Return
  • Federal Income Taxes for Household Employees
• Employment Tax Deposit Penalties
  • Employment Tax Deposit Penalties
  • Order in Which Employment Tax Deposits Are Applied
  • IRS Employment Tax Penalty Refund Offer
  • What Are Trust Fund Taxes?
  • How the Trust Fund Recovery Penalty is Assessed
  • Who is Responsible For the Trust Fund Recovery Penalty?
  • Delinquent Employment Taxes
  • What Should You Pay First-Debts to Business Creditors or Taxes?
  • Paying Past Due Taxes
• Using a Payroll Service
  • Advantages of Using a Payroll Service
  • Your Role When Using a Payroll Service
  • What a Payroll Service Does

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Contract Labor

• Control is the Key Factor
• Self-Employed Persons
• Not Sure How to Classify a Worker?
• Good Faith Misclassification of Workers
• What is Backup Withholding
• When Backup Withholding is Required for Independent Contractors
• Form 1099-MISC
• Schedule C and Independent Contractors
• Independent Contractor Agreement

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IRS Penalties

• Avoiding IRS Penalties
• Common IRS Tax Penalties
• Penalty on Distributions Before Age 59 1/2
• Reporting Early Distribution Penalties
• When Penalties May Not Be Assessed on Distributions Before Age 59 1/2
• Appealing a Penalty
• When the IRS May Waive Interest

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Capital Gains and Losses

• What are Capital Assets?
• Selling Investment Property
• Capital Losses and Ordinary Losses Explained
• Nine Rules for Capital Losses
• What is Section 1244 Stock?
• Special Tax Treatment for Personal Use Property
• Property Not Classified as a Capital Asset
• Selling Business Property
• Depreciable Business Property
• Form 4797, Sale of Business Property
• What is Section 1231?
• Figuring Basis
• Unadjusted Basis
• Adjusted Basis
• Figuring Amount Realized
• What Is Your Holding Period?
• How to Determine Your Holding Period
• When the Holding Periods Begins for Certain Types of Items
• Computing Capital Gains and Losses
• The Netting Procedure
• Transactions Reported on Schedule D
• Form 1099-B Explained
• Transactions Reported on Schedule D
• Form 1099-B Explained
• Schedule D
• Transactions Reported on Schedule D
• Form 1099-B Explained
• Capital Gains Rates

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Closing Your Business

• Closing a Sole Proprietorship
• Was Your Sole Proprietorship Temporarily Inactive for One or more Years?
• Resuming Business Operations
• Closing Your Business When You Have Employees
• Employment Tax Returns
• Did You Pay Independent Contractors $600 or More Your Last Year of Business?
• Form 1096
• State Unemployment Tax (SUTA)
• Sales Tax
• State Income Taxes
• Closing a Partnerships
• Closing a Corporations
• State Requirement for Dissolving a Corporation
• Deducting Unamortized Costs and Winding Up Expenses

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Selling Your Business

• Selling a Sole Proprietorship
• Tax Aspects of Selling a Business
• Selling a Group of Assets
• When Does a Group of Assets Constitute a Trade or Business?
• Types of Business Property
• What is Section 1231?
• What is the Section 1231 Tax Advantage?
• What Are Section 1231 Transactions?
• What is Not Section 1231 Property?
• Tax Forms and Schedules Used In Selling A Business
• How to Compute and Report a Net Section 1231 Gain or Loss
• Depreciation Recapture
• Nonrecaptured Net Section 1231 Losses
• Example of Section 1231 Computation
• Form 8594, Asset Acquisition Statement
• Asset Classes on Form 8594
• The Residual Method
• How Residual Method Works
• What Are Section 197 Intangibles?
• Recapture Rules for Section 197 Intangibles After August 8, 2005

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