Getting Your Just Deductions Getting Your Just Deductions

Getting Your Just Deductions

Getting Your Just Deductions Lesson Goals: • Learn relevant income tax regulations • Complete IRS Schedule C: Profit or Loss from Business • Organize financial records

Getting Your Just Deductions Three Categories of Taxes Federal State Local

Getting Your Just Deductions Business Structures • • • Sole Proprietorship Partnership Corporation S Corporation Limited Liability Corporation (LLC)

Getting Your Just Deductions Tax Filing • Who • How to file • When • Estimated Taxes • How long to hold

Getting Your Just Deductions Schedule C Form 1040

Getting Your Just Deductions Schedule C Sections • • • General Information Part 1 – Income Part 2 – Expenses Part 3 – Cost of Goods Sold Part 4 – Information on Your Vehicle Part 5 – Other Expenses

Getting Your Just Deductions Tax Issues for Small Businesses Sole Proprietorship • • Depreciation Meals and Entertainment Transportation Travel

Getting Your Just Deductions Employees and Small Businesses • Employer Identification Numbers (EIN) • Wages of Family Members • Employees

Getting Your Just Deductions Recordkeeping for Employees • Federal Withholding • Social Security / Medicare Taxes • Federal Unemployment Taxes • State Unemployment Taxes • Earned Income Credit (EIC)

Getting Your Just Deductions Useful IRS Tax Guides • Publication 15 – Circular E – Employers Tax Guide • #463 – Travel, Entertainment, and Gift Expenses • #334 – Tax guide for Small Business

Getting Your Just Deductions Useful IRS Tax Guides • #334 – Tax Guide for Small Business • #583 – Information for Business Tax Payers

Getting Your Just Deductions Deductible Home Office Expenses • Mortgage Interest • Property Taxes • Home Insurance See IRS Pub #587 – Business Use of Your Home

Getting Your Just Deductions Figuring the Home Office Deduction • Measure the square footage of your home • Measure the square footage used for office space Home Square Footage _____________________________ Office Square Footage = Total Business Square Footage