475 Tax Deductions for All Small Businesses, Home Businesses, and Self-Employed Individuals

Preface A Treasure Hunt xi

Chapter 1:

Introduction to Tax Deductions 1

Relax 1

Who Is This Book For? 2

Business Legal Structure 2

How to Use This Book to Your Best Advantage 3

Expense Categories 5

Is Every Possible Tax Deduction Listed? 6

Isn’t This What You Pay Your Accountant For? 6

Will Your Deductions Trigger an Audit? 7

When in Doubt, Deduct 8

Tax Loopholes and Tax Secrets 9

Federal versus State Laws 9

Keeping Records 9

When Can You Take a Deduction? 10

Cash Method versus Accrual Accounting 10

Structuring—and Wording—Transactions to

Your Best Tax Advantage 11

Timing Transactions to Your Best Tax Advantage:

Year-End Strategies 12

Year-End Payments 12

Paying Business Expenses: You or Your Business? 13

Multiple Businesses 13

Home-based Businesses 14

On-Demand Workers 15

Hobby Income and Losses 17

“I Wish I Had This Book Last Year”: Amending

Prior Years’ Tax Returns 18

One Last Caution 18



Chapter 2:

Terminology 19

Self-employed Individuals and Independent

Contractors 19

Employer / Employee 20

What Is a Tax Deduction? 20

Tax Write-Off 21

Personal versus Business 21

Capitalized Expenses 21

“Significant” Costs 22

Customers, Clients, and Etc. 22

IRS Audits 23

Tax Credits versus Tax Deductions 23



Chapter 3:

The Four Basic Rules for All Expenses 25

Rule 1: Business Related 26

Rule 2: Ordinary Expenses 26

Rule 3: Necessary Expenses 27

Rule 4: Not “Lavish or Extravagant” 27

And One More . . . The $25 Million Dollar Rule 28

Chapter 4 475 Tax Deductions, A to Z 29

About the Author 233