Customer Reviews

Home Business Tax Deductions: Keep What You Earn

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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.

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.

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.

Most of us who are in business for ourselves spend our time working, marketing, making money. We don't have the time or inclination to concern ourselves with the grind of figures and record-keeping. But after you read this book, you'll have a new respect for that end of your business. In fact, you'll discover that you can indeed keep more of what you've made if you keep careful records and understand even the basics of the tax law.

Admittedly some of this, like the tax code itself, is dry as dust. But when you finish the book and put it down, you'll have a better grasp on your business. You'll see ways to keep more of what you earn and you'll understand how the tax system, the IRS works. You'll feel more confident.

Now, it doesn't matter if you do your own taxes or not. Face it, no one cares as much about you and your business as you do. And many tax preparers are, frankly, incompetent. Few are up-to-date on all the new tax laws. The bottom line is it's up to you to understand your own tax situation and to understand every line in your tax forms.

You should also know this book is updated as of 2010. Also, much of what's in this book is almost identical, word for word, to other Nolo titles. So, before investing in other Nolo titles, make sure you'll get new information. At least look at the Table of Contents. Often they'll be almost identical.

Highly recommended.

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.

I am in the process of starting up a new branch of my personal training business, and have been worried about how to keep correct records, and filing my taxes properly (and to my best advantage).

For me, this book is a GOLDMINE of information! I am so thrilled to have it--it answered all of my questions and will serve as a valuable tool throughout the year.

It starts with the basics: Using personal stories and examples that are applicable to a home business owner, the author begins with describing how deductions work, how business are taxed, and how you can use this information to best benefit you, to get the greatest value from your deductions.

You have to prove you are a real business and this book teaches you exactly how to do that. I remember back in the 80's you could just create a business so that your hobby could be a tax deduction. Not anymore.

Start up expenses: There are certain expenses you can write off, and some you cannot. There are certain rules you have to follow when you start a business, and there are even accomodations for businesses that never actually get off of the ground. There are also pitfalls (set ups, in my opinion) within the IRS that will bit you in the butt if you don't handle them properly--which this book tells you exactly how to do. Inventory is covered--how to start it up, maintain it, and deduct the costs thereof. It walks you through how to report your inventory to the IRS.

Operating in your home gives you certain tax benefits (we all know that). But, again, unlike the 80's, where you could write off soooo much, now those write offs are limited. This book lays out exactly what those limitations are and how to make the most of your write offs. It walks you through the Home-Office deduction and how to meet the IRS requirements for your deduction(s).

Long-term assets, depreciation, special tax forms--all covered in this book.

We've all heard about meal, entertainment, car, local and business travel expenses being great write offs. It's a lot harder now than in the past, but you CAN do it,and maximize those deductions with the tools in this book.

Now, part of my business includes hiring workers/contractors. This book covers all of it--employees or contractors; tax deductions and employee benefits, and even employing your family members and what that will entail , for you. It even goes over the NEW HEALTH CARE REFORM BILL and how it affects your business. It goes over medical expenses, insurance, tax credits, medical reimbursement plans, and health savings accounts. Wow.

Retirement? It's covered in this book. How to plan for YOUR retirement with a Retirement Plan (or plans). IRA's, employer IRA's, Keoghs, 401K's...it's all there.

It goes through lists of additional home business deductions, from advertising to charitable contributions, to education, to legal services...it's amazing--the more you read, the more you realize you "could have" written off.

It gives 10 tips to avoid an audit, previous year deductions and revisiting past tax years. SO much information is included in this book, I wish I could give you an adequate overview, but it'd be so long, you might as well buy the book. ;)

(10 Tips overview: Be Neat, Thorough, and Exact in your records and filings; Mail Your Return by Certified Mail; Don't File Early; Don't File Electronically; Form a Business Entity; Explain Items the IRS Will Question; Avoid Ambiguous or General Expenses; Report All of Your Income; Watch Your Income-to-Deduction Ratio; Beware of Abnormally Large Deductions...the book spends pages and pages describing each one of these in detail, but I thought this would pique your interest.)

There are spreadsheets and org charts to follow to make sure you are considering the right expenses for the right deductions. The examples are SO clear and concise, you can't mess it up.

If you own your own home business, or are considering starting up a home business, this book is mandatory for you!
And, if there are updates--you can even retrieve updates to the codes at their website, Nolo . com.

Home Business Tax Deductions is another of No Lo amazing books!

This book gives you a number of real-world examples and is a very easy read. Ypou'll be very surprised when you find this book is written ina very invisting and engaing way. You will definately learn so much in just the first few chapters and it will be a reference you return to often!

You will learn how to avoid the tax tragedy of being classified by the IRS as a hobby instead of a legitimate business. In fact, if you claimed any business deductions and were later found to be a hobby which can cost your more, you could find yourselves thousands of dollars in debt to Uncle Sam, thanks to back taxes and penalty fees. But this book gives very easy-to-implement techniques that will help you prove that you are, in fact, a business and hw to report it and most inmportantly keep accurate records for it.

In addition, it gives you the answers to common questions about what constitutes legitimate business deductions, from business lunches (does it count if you talk about business and pleasure?) to the cost of gas used to drive to grocery store with details on how to report it. Also, you can deduct the gas if you used the trip to purchase business supplies (such as paper or envelopes) along with your family's groceries and the details abut reporting them.

You'll also learn the ins and outs of the all-important home office deductions, business issues, along with the tax requirements of hiring workers and there needs, from full-fledged employees to independent contractors. Finally, this book gives ten tips to staying out of trouble with the IRS and avoid audits and pitfalls in taxes..

This book also translates complex tax laws into concepts that those of us who didn't attend law school can easily understand. Also it takes you step by step on where to go and what to do.

Home Business Tax Deductions is updated yearly to reflect changes to tax laws which as you know they change constantly. The paperback version is the best and complete with contents and guideto help your research. Another great No Lo learning tool. 2-2011

This book was a god send for me. There are so many types of businesses around today. Due to the internet there are now many people who conduct sales that make their status above that of a hobby but not that of a small business with employees, health insurance etc. I am one of those people. Sales from the home. Me and a friend do it and we have to file taxes as a business. But what are we, what must we file and how do we protect ourselves.

The book explains it fully. We are a home business and finally we have a resource that lays everything on the line for all like me. Not only must taxes be filed for any business but you must register your store name etc. I had found other resources that seemed to be good but as they went further into things they catered the info to small businesses. This book is so much more than a dummy guide. It truly leads thru all the processes a home business must go thru as well as provide a wealth of information to do taxes correctly so that you keep the money you earn.

If you are a home business and scratching your head in confusion this book is a MUST !!

If you're a small business person, or thinking about becoming one, this is a very good reference. It provides a good perspective on all the major area of tax concern that most small businesses will be involved with and does so with good explanations and discussions. I've done my fair share of accounting over the last few years and still found this to be a very worthwile resources. Definitely recommended.

As I have a small side business related to my writing activities, I have to pay attention to all those tax-related matters. I found this book of interest at the library... Home Business Tax Deductions: Keep What You Earn by Stephen Fishman. It's probably one of the best tax guides I've seen, in that it's readable, understandable, and practical.

Contents:
Home Business Tax Deduction Basics
Are You Really In Business?
Avoiding the Start-Up Tax Trap
Home Business Operating Expenses
Deducting Long-Term Assets
The Home Office Deduction
Meal and Entertainment Expenses
Car and Local Travel Expenses
Business Travel
Inventory
Hiring Workers
Medical Expenses
Retirement Deductions
Additional Home Business Deductions
Record Keeping and Accounting
Claiming Tax Deductions for Prior Years
Staying Out of Trouble With the IRS
Help Beyond This Book
Index

I've waded through tax books that are extremely comprehensive, as well as *huge*. The problem there is that you're never quite sure if you've found everything you should be looking for. Fishman condenses those "phone book" guides into something around 450 pages that covers the most important aspects of the tax code that affect the home/small business owner. Instead of listing endless regulations and nuances, he gives you the information in a conversation style that doesn't sacrifice detail for readability. That's good, as you don't want to end up in front of a tax auditor ill-prepared for the questions they may ask. In addition to the coverage of the laws and guidelines, he also includes a number of realistic examples so you can see how that aspect of tax law would apply to someone who might be in your same situation. The combination of information and application make this a valuable guide that can easily save you the purchase cost of the book come April 15th.

I personally found the information reassuring, as I was able to confirm that the taxes I've done in the past have been accurate. If I had never had to do a Schedule C before, I'd consider this a must-read. Definitely worth buying...