Deduct it! : lower your small business taxes

Completely updated for 2014 returns !

Deduct It! shows you how to maximize your business deductions--quickly, easily and legally. Easy to read and full of real-world examples, Deduct It! will pay for itself many times over. It covers deductions for:

start-up and operating expenses
travel, meals and entertainment
home offices (including new IRS rules)
health care
equipment and inventory
Obamacare and more

Includes detailed information on the new health care law (Obamacare) and how it affects small business owners, including the health insurance mandate for individuals and businesses with employees, credits and deductions under the new law, IRS penalties for noncompliance, and Obamacare's impact on HRAs (Health Reimbursement Arrangements) and HSAs (Health Savings Accounts).

Deduct It! shows you how to avoid problems with the IRS, including having your business classified as a hobby. It also explains how to amend your tax return if necessary. Whether your enterprise is just starting or well established, this book is indispensable to your financial success.

• Introduction: Your Tax Deduction Companion p. 1
• 1 Tax Deduction Basics p. 5
• How Tax Deductions Work p. 6
• How Businesses Are Taxed p. 9
• The Value of a Tax Deduction p. 17
• What Businesses Can Deduct p. 21
• Businesses That Lose Money p. 24
• 2 Are You Really in Business? p. 29
• What Is a Business? p. 31
• Tax Consequences of Being a Hobbyist p. 38
• Income-Producing Activities p. 40
• 3 Start-Up Expenses p. 49
• What Are Start-Up Expenses? p. 50
• Starting a New Business p. 51
• Buying an Existing Business p. 54
• Expanding an Existing Business p. 55
• When Does a Business Begin? p. 56
• Claiming the Deduction p. 59
• If Your Business Doesn't Last 15 Years p. 60
• Expenses for Businesses That Never Begin p. 61
• Organizational Expenses p. 63
• Avoiding the Start-Up Tax Rule's Bite p. 64
• 4 Business Operating Expenses p. 65
• Requirements for Deducting Operating Expenses p. 66
• Operating Expenses That Are Not Deductible p. 74
• Tax Reporting p. 76
• 5 Deducting Long-Term Assets p. 77
• What Is a Long-Term Asset? p. 79
• Repairs Versus Improvements: The New IRS Regulations p. 81
• Methods for Deducting Business Assets p. 88
• Rules for Deducting Any Long-Term Asset p. 90
• Section 179 p. 96
• Bonus Depreciation p. 106
• New Business Property Deductions p. 110
• Regular Depreciation p. 114
• Depreciation Recapture p. 128
• Tax Reporting and Record Keeping p. 128
• Leasing Long-Term Assets p. 130
• 6 Inventory p. 135
• What Is Inventory? p. 136
• Deducting Inventory Costs p. 139
• Maintaining an Inventory p. 142
• Determining the Value of Inventory p. 143
• Office Expenses p. 149
• Qualifying for the Home Office Deduction p. 150
• Corporation Employees p. 162
• Calculating the Home Office Deduction p. 164
• Simplified Home Office Deduction Method p. 177
• IRS Reporting Requirements p. 180
• Audit-Proofing Your Home Office Deduction p. 182
• Deducting an Outside Office or Workplace p. 183
• 8 Car and Local Travel Expenses p. 189
• Deductible Local Transportation Expenses p. 190
• The Standard Mileage Rate p. 201
• The Actual Expense Method p. 205
• How to Maximize Your Car Expense Deduction p. 218
• Other Local Transportation Expenses p. 219
• When Clients or Customers Reimburse You p. 220
• Reporting Transportation Expenses on Schedule C p. 221
• Corporations, LLCs, and Partnerships p. 222
• 9 Business Travel p. 227
• What Is Business Travel? p. 228
• What Travel Expenses Are Deductible p. 236
• How Much You Can Deduct p. 238
• Maximizing Your Business Travel Deductions p. 249
• How to Deduct Travel Expenses p. 251
• Travel Expenses Reimbursed by Clients or Customers p. 254
• 10 Meal and Entertainment Expenses p. 255
• What Is Business Entertainment? p. 256
• Who You Can Entertain p. 258
• Deducting Entertainment Expenses p. 258
• Calculating Your Deduction p. 263
• Reporting Entertainment Expenses on Your Tax Return p. 269
• 11 Hiring Workers p. 271
• Employees Versus Independent Contractors p. 272
• Tax Deductions for Employee Pay and Benefits p. 276
• Reimbursing Employees for Business-Related Expenditures p. 285
• Employing Your Family or Yourself p. 291
• Tax Deductions When You Hire Independent Contractors p. 302
• 12 Retirement Deductions p. 307
• Why You Need a Retirement Plan (or Plans) p. 309
• Employer IRAs p. 317
• Keogh Plans p. 320
• Solo 401(k) Plans p. 321
• 13 Medical Expenses p. 325
• The Affordable Care Act ("Obamacare") p. 327
• The Persona! Deduction for Medical Expenses p. 337
• Deducting Health Insurance Costs p. 338
• Tax Credits for Employee Health Insurance p. 347
• Adopting a Health Reimbursement Arrangement p. 351
• Health Savings Accounts p. 359
• 14 Additional Deductions p. 371
• Advertising p. 373
• Business Bad Debts p. 376
• Casualty Losses p. 382
• Charitable Contributions p. 385
• Clothing p. 387
• Dues and Subscriptions p. 388
• Education Expenses p. 388
• Gifts p. 391
• Insurance for Your Business p. 392
• Interest on Business Loans p. 393
• Legal and Professional Services p. 399
• Taxes and Licenses p. 400
• Domestic Production Activities p. 404
• 15 Record Keeping and Accounting p. 409
• What Records Do You Need? p. 410
• Records Required for Specific Expenses p. 425
• How Long to Keep Records p. 437
• What If You Don't Have Proper Tax Records? p. 438
• Accounting Methods p. 439
• 16 Claiming Tax Deductions for Prior Years p. 449
• Reasons for Amending Your Tax Return p. 450
• Time Limits for Filing Amended Returns p. 452
• How to Amend Your Return p. 455
• How the IRS Processes Refund Claims p. 456
• 17 Staying Out of Trouble With the IRS p. 457
• What Every Business Owner Needs to Know About the IRS p. 458
• Ten Tips for Avoiding an Audit p. 465
• 18 Help Beyond This Book p. 471
• Secondary Sources of Tax Information p. 472
• The Tax Law p. 479
• Consulting a Tax Professional p. 485
• Index p. 489