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An Introduction to Taxes: How You Pay and File
Everybody knows that there are taxes that have to be paid - and if you live in an area that charges sales tax, you are probably aware of that type of tax from a very early age. Sales tax and income tax are some of the most common types of taxes that...
Home Based Business Tax Deductions
Running a home based business reaps many wonderful tax deductions that other businesses some times may not claim. Unfortunately to many small business owners end up paying the government taxes every year because they are unaware or several small...
Home Business Tax Tips
Running a home based business reaps many wonderful tax deductions that other businesses some times may not claim. Unfortunately to many small business owners end up paying the government taxes every year because they are unaware or several small...
How To Realistically Set Your Fees - Part 3
Effect of Benefits
We have previously examined realistic billable hours and the effect of business expenses on your hourly rate. Now we'll look at the effect of benefits.
Once upon at time, when we were employed, we received a benefits...
Working With Your Real Estate Attorney
Purchasing or selling a home will probably be one of your largest and most important financial transactions. Before signing a contract to purchase or sell a home, both buyer and seller should consult an attorney to assure that the real estate...
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Taxes Made Easy for Your Home-Based Business
I had never heard of Gary W. Carter and had never read any of his books until now – and I have to say I'm really glad that I did.
Anyone who has a home-based business or is contemplating starting one needs this book on their reference shelf. If you're like most home-based business owners, you have had numerous questions about when and how you can take tax deductions for your home office, supplies and equipment. You've probably wondered what paperwork had to be kept, what information it needed to show and how long you have to keep it as well, right? On top of those questions, there are the formidable IRS forms that need to be filled out properly in order to qualify for the deductions and avoid being audited. If this is you, get this book. You will not be disappointed.
Gary W. Carter, the book's author, has over 20 years of tax experience. He has worked as a revenue auditor, tax practitioner, and seminar leader on tax issues as they pertain to home-based businesses. In this book, he shares his expertise brilliantly with easy to understand, step by step explanations, examples and instructions.
Carter's combination of historical tax facts, court cases that have set precedence, and changes that will take affect in the coming years serve to give you a much better understanding of the entire system and your options within that system. His layman explanations of tax audits, accounting systems, record keeping, and "business" as it is defined by the IRS give you a wealth of information to belay your tax fears, and empower you with the knowledge you need to get the most out of tax time.
The very first chapter in the book covers IRS audits. It tells you how audits are done, what to expect and what rights you have. I was surprised to find the process is actually simple, direct and fairly non-threatening. From chapter two and on, Carter delves deeply into the information of the most importance to home-business owners. Topics include the legal definition of a business for tax purposes, allowable deductions and how to record and calculate them, business entity formations and the pros, cons and red tape associated with each, and more.
Chapter three is devoted to the legal entity structure of your business. It goes into more detail than I have yet to find anywhere else – and it uses language understandable by even the general public. If you've been reading advice that strongly suggests forming a corporation for legal and tax reasons, and struggling over whether the benefits of this move will outweigh the red tape that comes with it, you will love this chapter.
Now in all honesty, reading chapter three the first time through was slightly overwhelming due to the sheer amount of information available. I admit I skipped or glazed over a few parts because I couldn't get my head around them, however I learned so much and answered so many of my own questions that it was well worth it. If you are overwhelmed as well, sit it on your reference
shelf and refer back to key areas as you need to – the information will be immensely helpful whether it is your first or tenth time reading it.
The book continues in this massive information manner throughout. Additional chapters tackle accounting methods (cash, accrual or hybrid), explaining how each works, what the IRS rules are concerning accounting methods and which may be the best for you.
Allowable deductions are also covered in detail. One chapter is completely devoted to Transportation deductions and another explains the most common other business deductions such as computers, books, magazines, meals, insurance and retirement plans.
One chapter explains how the sale of your home plays into your home office tax reports, another details the payment of state, local, self employment and social security taxes, and another even tells you which records you should keep and for how long.
Throughout the book, explanations are given as to which IRS forms need to be filled out for which purposes. Carter even devotes one entire chapter to explaining Form 8829 (Expenses for the business use of your home) line by line. At the end of the book he also provides a comprehensive example of a married couple: What their income was and from where, how they reported their income and deductions and so on. Included with the example are all forms, filled in, that this couple submitted to the IRS for that year.
Every single chapter in this book includes a Notes section at the end. The notes' section is an annotated reference list that tells you where to find government laws and codes, free publications, court cases cited in the book and more. This information alone is a goldmine of reference material. In addition, there are breakout boxes speckled throughout the book to provide working examples of major points being made.
In summary, this book provides an extremely detailed look at the legal and monetary side of running a business from your home. It provides a wealth of information on its own, and expands on that to provide comprehensive reference materials for anyone that wants or needs them.
Overall Rating: 5 Stars (out of 5)
Pros: You don't have to have a PhD to understand it
Cons: Some of the information can be overwhelming, especially when references to various IRS form numbers are given. Considering the complexity of the topic however, the author did an excellent job.
Recommended: Highly
Office Shelf: Reference
Availablility: In Stores Now - Check Amazon Price
Looking for more consulting articles, job postings, tips and hints? Check out
The Consultant's Hangout today! http://www.ConsultantsHangout.com
About the Author
Kathy Burns is a highly respected, nationally published freelance writer.
She offers a variety of specialized consulting and writing services to organizations
of all shapes and sizes. You can contact her at any time by visiting:
http://www.ElectronicPerceptions.com
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| Internal Revenue Service |
| The US government agency responsible for tax collection and tax law enforcement. Includes income tax forms, instructions, and agency publications. |
| www.irs.gov |
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| Tax Information for Individuals |
| Access to useful information, booklets and other tools from the Internal Revenue Service. |
| www.irs.gov |
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| Tax Center - Yahoo! Finance - Tax forms, tips and calculators. |
| Yahoo! Finance: Tax - Find all the resources you need for tax season. Review recent tax law changes, estimate your taxes, find tax tips and expert answers ... |
| tax.yahoo.com |
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| Taxes: Tax Planning, Tools and Advice - MSN Money |
| Microsoft's Tax Preparation site, in association with Tax Server. |
| moneycentral.msn.com |
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| Tax - Wikipedia, the free encyclopedia |
| Governments use different kinds of taxes and vary the tax rates: ... Taxes are most often levied as a percentage, called the tax rate, of a certain value, ... |
| en.wikipedia.org |
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| H&R Block | Taxes, Online Tax Preparation, Tax Software, Filing ... |
| Offers online and in-person tax preparation and tax software, mortgages, brokerage and financial services, consumer tips and tax planning information. |
| www.hrblock.com |
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| TaxCut Online | H&R Block | Online Taxes, File Taxes Online ... |
| File your Taxes online with TaxCut Online. Learn how to file taxes online here. |
| www.hrblock.com |
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| Income Taxes, Tax Returns, Refunds, Deductions and E-File Software ... |
| Popular tax preparation software by Intuit. Integrates with Quicken, spreadsheets and offers state by state electronic filing. |
| turbotax.intuit.com |
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| Taxes & Estates, Tax and Estate Planning Advice - Forbes.com |
| Personal Finance - Get tax and estate planning advice and information from Forbes.com. |
| www.forbes.com |
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| Essential Links to Taxes |
| TurboTax Premier For Federal Returns 2005 Win/Mac, TurboTax Total Tax Solution Deluxe 2005 with State Win/Mac, TurboTax Basic 2005 Win/Mac... ... |
| www.el.com |
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| Government > Taxes in the Yahoo! Directory |
| Yahoo! reviewed these sites and found them related to Government > Taxes. |
| dir.yahoo.com |
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| Taxes - Tax News for Home and Business from CNNMoney |
| The latest in tax law updates, news, forms & advice from CNNMoney.com. Includes a refund savings calculator, and interactive tax lessons. |
| money.cnn.com |
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| The Tax Foundation - Educating Taxpayers Since 1937 |
| Devoted to educating taxpayers about tax policy and the total tax burden borne by Americans at all levels of government. |
| www.taxfoundation.org |
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| Welcome to the Vermont Department of Taxes |
| Welcome to the Vermont Department of Taxes... ... Changes to Property Tax Adjustments in 2007 - updated 10/18. - Tax Expenditures Transition Report on ... |
| www.state.vt.us |
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| Franchise Tax Board Homepage |
| The department that collects state personal income taxes and bank and corporation taxes for the State of California. Access to forms and tax information. |
| www.ftb.ca.gov |
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| HM Revenue & Customs: Home Page |
| News and information on tax and national insurance, including downloadable leaflets and forms and the latest news on filing tax returns on-line. |
| www.hmrc.gov.uk |
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| State and Local Tax |
| Piper Resources; State Tax Rates and Structure ...Federation of Tax Administrators; State Payroll Taxes Information ...Symmetry Software ... |
| www.taxsites.com |
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| Quicken.com |
| www.quicken.com/taxes/ - 3k - Cached - Similar pages |
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| Tax news and advice from Bankrate.com |
| Information on all phases of tax planning and preparation. |
| www.bankrate.com |
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| Online Tax Advice - Tax Preparation Help - Income Tax Tips |
| Income Tax Tips - MarketWatch offers online tax advice and tips. ... IRS inflation adjustments mean tax break on next year's taxes. ... |
| www.marketwatch.com |
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