Home Business Tax Deductions: Keep What You Earn

Product Description
Keep your hard-earned money in your home business!

Completely updated for 2010 returns

Tax deductions are essential to any business, but even more so when your office is also your home. Don't spend thousands on an accountant --turn to Home Business Tax Deductions and do it yourself!

Home Business Tax Deductions will help you write off:

  • your home office
  • start-up and operating expenses
  • vehicles and travel
  • entertainment and meals
  • health insurance and medical bills
  • inventory
  • equipment

    The 7th edition is completely updated with all the latest tax information, eligibility requirements and deductions for 2010 returns. Home Business Tax Deductions also covers how to avoid being classified as a hobby business, steer clear of home-business tax scams, stay out of trouble with the IRS and take special deductions if your business loses money. Home Business Tax Deductions: Keep What You Earn

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  • 5 Responses to “Home Business Tax Deductions: Keep What You Earn”

    • James May says:

      I wish I’d had this before I started my business. Plain english explanations and chock full of good tips. This book more than paid for itself the first day!

      If you are starting a business in your home, you NEED this book. Especially if you find TAX laws confusing this will be an immense help. Preferably read it before you officially start. It will save you a bundle.

      Indexing is excellent; very easy to find what you want and the explanations are clear and concise.

      Definetly recommended.
      Rating: 5 / 5

    • John Matlock says:

      This book starts off with a very good description of what this book is all about: John and Jane both gross $50,000 a year. John gets $40,000 after taxes, Jane gets $45,000. The difference – John works for someone and goes into work. Jane works at home and gets to deduct her home office expenses.

      The IRS allows you to deduct your expenses of maintaining a home office. At the same time, the IRS rules are fairly comples, and home office expenses are often overstated or subject to outright fraud. So the IRS tends to look at them fairly carefully, they have been known to come to your house to see what your office looks like.

      This book, updated to be current for 2006, explains the rules as written down, the rules as actually followed and gives you some tips as to what you should, shouldn’t, must, and mustn’t do. Beyond the official rules, which are messy enough, there are more or less unknown rules, i.e. computer software that you buy is written off one way (well actually two or three ways), software you create, either for yourself or for sale, is handled quite differently.

      This book is well written, simple to read and up to date with current law.
      Rating: 5 / 5

    • Traveler says:

      I’m working on my schedule C and 8829 and every so often I get to a question I don’t understand. I go to the IRS instructions and their web site and it’s as clear as used motor oil. It’s enough to drive you insane.

      Picked up this book and it’s spelled out in plain English. No need to read a passage five times to understand.

      As others have stated, you need this BEFORE you start your business and you need it a year before you do your taxes. In other words, it will help you along with your 2006 return and you can learn from it on how to do a better job for 2007 by keeping the right documents and receipts in order to get even bigger legitimate deductions. I know I wish I’d had this book last year!

      With that said, this is not a line-by-line assistant for Schedule C and the 8829 which I wish it was at times. There are just times when the IRS uses a specific term on a specific line and it would help to have a layman’s definition at hand. I didn’t get that with this book. Nonetheless, it’s been one of the best sources of information I’ve found for doing one’s self employment tax forms.
      Rating: 5 / 5

    • If you’re in business for yourself, you better buy this book. It wasn’t as complete as I thought it should be. But I did learn that I was not taking all the deductions that I could. So it more than paid for itself.

      Suggested reading.
      Rating: 4 / 5

    • Derek G says:

      If we need any more evidence that our tax system is broken, consider the fact a 485 page book can be written solely on the subject of tax deductions. That’s not to say that this is just a large list. Instead it’s a guide to teach the reader how to file taxes the way the professionals do with an emphasis on sole proprietorship. It starts off with a primer of how taxes work along with an up to date description of the current brackets and the income levels necessary to move from one bracket to the next (i.e. you have to make over $372,950 to be taxed at the 35% bracket an you are only taxed at that rate for income exceeding this amount.) Next is the most important chapter to read for those deciding whether to start a home business, determining whether your business is really a business or whether it will be classified as a hobby by the IRS. Chapter three involves start up expenses including how to prove when your business begins and how to deduct start up expenses properly.

      Chapter four involves operating expenses as they relate to a home business. A wonderful highlight includes pg 73 entitled “A Deductible Day in the Life of a Home Business Owner” that goes through the day to day activities a part-time baby photographer is allowed to deduct as she goes through her business. It’s a must read as many people don’t realize just how favorable a home business can be from a tax standpoint. Highlights like these are sprinkled throughout each chapter and they illuminate the rather dry subject of tax preparation with real world examples.

      Chapter five involves deductions of assets considered long-term by the government. Usually this refers to depreciation of property and equipment but it highlights the most common traps a taxpayer can fall into; deducting items that are also uses for personal use (i.e. computers and cellphones) as well as Section 179 depreciation do’s and don’ts and when standard depreciation is better than Section 179. Home office deduction follows with its own chapter. The chapter will teach you how to qualify for a home office deduction and how things change if you file a corporation.

      Future chapters involve the most common deductions home business owners are aware of; meal, entertainment, inventory and automobile and travel expenses. What people may not realize is local travel is also deductible as long as it is used solely for business purposes. Leasing vs buying an automobile is covered, leasing a luxury car is covered, and tips are given so you can maximize your mileage deductions effectively.

      Chapter 11 shows you how the IRS distinguishes between whether the worker you hired is considered an actual employee or an independent contractor and what you must do in each case. Chapter 12 talks about medical expenses and the plans available such as medical reimbursement or HSA and how to set them up. It also answers the question of whether or not a HSA is a good deal. This is followed in chapter 13 with a list of the different retirement plans that are available to you; traditional, Roth, simple, employer and SEP-IRA’s along with Keogh and Solo 401(k) plans. Chapter 14 wraps up with a list of the potential deductions not already covered such as advertising, bad debt, casualty losses, charitable contributions, gifts, and insurance among others.

      Chapters 15-18 finish with the many methods available to protect yourself against getting in trouble with the IRS. This includes proper record keeping and accounting methods along with accepted ways to prove your deducted expenses are legitimate, how to claim tax deductions for prior years, the groups that tend to be targeted for audit, and the types of deductions that tend to be hot button issues for the IRS and may increase your chances of being flagged for an audit. You are also given additional avenues for research tax information both from the IRS and useful tax resources on the Internet. If the task of recordkeeping, accounting, and tax filing presents too much of a challenge, tips are given on how to find a qualified tax professional.

      I’ve always found Nolo books to be of exceptional quality and this book is no exception. I will be surprised if you don’t discover at least one area of your business that you did not take advantage of available deductions even if you are the most experienced home or small business owner. If you fall into this category, this book is a must-read.
      Rating: 5 / 5


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