Minding Her Own Business, 4E
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Written in plain English, Minding Her Own Business provides the crucial tools you need to understand your business’ finances and prepare yourself for April 15th. It gives the self-employed woman exactly what she needs to understand her taxes and establish a good recordkeeping system. Use it to maximize your deductions and make yourself more audit-proof.
Saving money is making money-learn how to maximize deductions, spot financial sinkholes and get credit where credit is due.
Make sure you are keeping the right records
the right way-every time.
Stay out of trouble by establishing a foolproof system that will prevent future headaches and minimize the risk of audit.
See exactly what you need to keep the bank, the IRS and any workers satisfied and on your side.
Let a licensed tax professional teach you the secrets she has already shared with tens of thousands of others.
deducted as a business expense, they may be eligible for either the tuition and fees deduction or the lifetime learning credit. Neither the credit nor the deduction is related to being self-employed. Education expenses that can be claimed as a business expense cannot also be used for one of these tax-saving programs. The tuition and fees deduction allows you to subtract up to $4,000 worth of education expenses as an adjustment to income (Line 27 of Form 1040). The lifetime learning credit takes
The simplest retirement plan available specifically for small business owners is the SEP IRA. SEP stands for Simplified Employee Pension, but don’t let the name confuse you—this plan is for sole proprietors, as well as partnerships, LLCs, and corporations. An SEP IRA can be set up at the same bank, brokerage house, mutual fund company, or other financial institution where you would open a traditional or Roth IRA. Depending on your business income, you may be able to contribute substantially more
taxes are paid with the return. Partners pay tax on the profits earned by the business. Each partner includes her share of the partnership income on her individual tax return. The profits (and losses) can be allocated unevenly, which may be helpful in reducing taxes for a high income partner. Like a sole proprietorship, a partnership is relatively free of government interference. However, the partnership tax return is more complex than the Schedule C used by sole proprietors, and the
If a show the IRS why you shouldn’t be preparer is doing your return or if you’re using penalized or to calculate the penala computerized tax program, go ahead and fill out the form. Otherwise, unless there’s a possities for not having sent enough or bility you can get out of some of the penalty, let having sent late payments during the IRS fill it out and bill you for penalties. the year. State Estimated Tax Payments The states that have an income tax (see Chapter 34) generally require people
be shareholders of an S corporation and income from the business can be split with them. This will be advantageous if you want to keep income from being taxed in your high tax bracket, and instead want it taxed at their (usually) lower tax rate. Choosing Your Business Structure ■ 9 Unlike a C corporation, fringe benefits are not available to employee/shareholders who own more than 2% of an S corporation—although they can be available for any other employees of the business. As with a C