J.K. Lasser′s Small Business Taxes 2021

BARBARA WELTMAN is an attorney and a nationally recognized expert in taxation for small businesses, as well as the author of many top-selling books on taxes and finance, including J.K. Lasser's 1001 Deductions & Tax Breaks. She is also the publisher of Idea of the Day® and Big Ideas for Small Business®, a contributor to SBA.gov, and quoted regularly in major publications (including the New York Times, the Wall Street Journal, and Money magazine). Visit her at www.BigIdeasForSmallBusiness.com.

Preface vii


Introduction xi


Part 1 Organization 1


1. Business Organization 3


2. Tax Year and Accounting Methods 44


3. Recordkeeping for Business Income and Deductions 62


Part 2 Business Income and Losses 75


4. Income or Loss from Business Operations 77


5. Capital Gains and Losses 116


6. Gains and Losses from Sales of Business Property 139


Part 3 Business Deductions and Credits 155


7. Employee Compensation: Salary, Wages, and Employee Benefits 157


8. Travel, Meals, and Gift Expenses 205


9. Car and Truck Expenses 232


10. Repairs, Maintenance, and Energy Improvements 260


11. Bad Debts 280


12. Rents 294


13. Taxes and Interest 306


14. First-Year Expensing, Depreciation, Amortization, and Depletion 325


15. Advertising Expenses 367


16. Retirement Plans 375


17. Casualty and Theft Losses 423


18. Home Office Deductions 440


19. Medical Coverage 462


20. Deductions and Tax Credits for Farmers 487


21. Qualified Business Income Deduction 500


22. Miscellaneous Business Deductions 515


23. Roundup of Tax Credits 559


Part 4 Tax Planning for Your Small Business 577


24. Income and Deduction Strategies 579


25. Distributions from Your Business 597


26. Tax Strategies for Opening or Closing a Business 602


27. Tax Strategies for a Sideline Business 617


28. Tax Strategies for Multiple Businesses 622


29. Alternative Minimum Tax 629


30. Other Taxes 635


31. Filing Tax Returns, Paying Taxes, and Making Refund Claims 657


32. Retirement and Succession Planning 675


33. Working with CPAs and Other Tax Professionals 684


34. Handling Audits with the IRS 689


Appendix A. Information Returns 695


Appendix B. Tax Penalties 704


Appendix C. Checklist of Tax-Related Corporate Resolutions 711


Appendix D. List of Dollar Limits and Amounts Adjusted for


Inflation 714


Index 719