The only "know how" guide for professionals who want to reduce their tax burden.

If you're ready to hold on to more of your hard-earned money, turn to Tax Deductions for Professionals. Comprehensive, easy to read and filled with interesting examples, the book is organized into practical categories featuring common deductions, including:

start-up and operating expenses
health deductions
vehicles and travel
entertainment and meals
home office
and many more

Plus -- unlike any other book on the market ---Tax Deductions for Professionals can help you choose the best legal structure for your practice, the most important business (and tax) decision you'll make.

The book also covers putting money into retirement accounts, the tax implications of owning the building you work in, and deducting the cost of continuing education, professional fees and other expenses.

The 2nd edition is completely updated with the latest tax numbers and laws for 2007.

The tax code is full of deductions for professionals -- from automobile expenses to wages for employees. Before you can start taking advantage of these deductions, however, you need a basic understanding of how businesses pay taxes and how tax deductions work. This chapter gives you all the information you need to get started. It covers:

-how tax deductions work
-how to calculate the value of a tax deduction, and
-what professionals can deduct.
A. How Tax Deductions Work

A tax deduction (also called a tax write-off) is an amount of money you are entitled to subtract from your gross income (all the money you make) to determine your taxable income (the amount on which you must pay tax). The more deductions you have, the lower your taxable income will be and the less tax you will have to pay.

Types of Tax Deductions
There are three basic types of tax deductions: personal deductions, investment deductions, and business deductions. This book covers only business deductions -- the large array of write-offs available to business owners, including professionals.

Personal Deductions
For the most part, your personal, living, and family expenses are not tax deductible. For example, you can't deduct the food that you buy for yourself and your family. There are, however, special categories of personal expenses that may be deducted, subject to strict limitations. These include items such as home mortgage interest, state and local taxes, charitable contributions, medical expenses above a threshold amount, interest on education loans, and alimony. This book does not cover these personal deductions.

Investment Deductions
Many professionals try to make money by investing money. For example, they might invest in real estate or play the stock market. They incur all kinds of expenses, such as fees paid to money managers or financial planners, legal and accounting fees, and interest on money borrowed to buy investment property. these and other investment expenses (also called expenses for the production of income) are tax deductible, subject to strict limitations. Investment deductions are not covered in this book.

Business Deductions
Because a professional practice is a profit-making enterprise, it is a business for tax purposes. People in business usually must spend money on their business -- for example, for office space, supplies, and equipment. Most business expenses are deductible, sooner or later, one way or another. And that's what this book is about: How professionals may deduct their business expenses.

 

The only "know how" guide for professionals who want to reduce their tax burden.

Introduction Why You Need This Book Icons Used in This Book 1. Tax Deduction Basics How Tax Deductions Work The Value of a Tax Deduction What Professionals Can Deduct 2. Choice of Business Entity Types of Business Entities Limiting Your Liability The Four Ways Business Entities Are Taxed Comparing Tax Treatments Should You Change Your Business Entity or Tax Treatment? 3. Operating Expenses Requirements for Deducting Operating Expenses Operating Expenses That Are Not Deductible Tax Reporting 4. Meal and Entertainment Expenses What Is Business Entertainment? Who You Can Entertain Deducting Entertainment Expenses Calculating Your Deduction Expenses Reimbursed by Clients 5. Car and Local Travel Expenses Deductible Local Transportation Expenses The Standard Mileage Rate The Actual Expense Method Other Local Transportation Expenses Reporting Transportation Expenses on Schedule C When Clients Reimburse You Professionals With Business Entities 6. Long Distance Travel Expenses What Is Business Travel? What Travel Expenses Are Deductible How Much You Can Deduct Maximizing Your Business Travel Deductions Travel Expenses Reimbursed by Clients 7. The Home Office Deduction Qualifying for the Home Office Deduction Calculating the Home Office Deduction How to Deduct Home Office Expenses Audit-Proofing Your Home Office Deduction 8. Deductions for Outside Offices If You Rent Your Office If You Own Your Office If You Lease a Building to Your Practice 9. Deducting Long-Term Assets Long-Term Assets Section 179 Deductions Depreciation Tax Reporting and Record Keeping for Section 179 and Depreciation Leasing Long-Term Assets 10. Start-Up Expenses What Are Start-Up Expenses? Starting a New Practice Buying an Existing Practice Expanding an Existing Practice When Does a Professional Practice Begin? How to Deduct Start-Up Expenses Organizational Expenses 11. Medical Expenses The Personal Deduction for Medical Expenses Self-Employed Health Insurance Deduction Deducting Health Insurance as an Employee Fringe Benefit Adopting a Medical Reimbursement Plan Health Savings Accounts 12. Retirement Deductions Why You Need a Retirement Plan (or Plans) Types of Retirement Plans Individual Retirement Accounts -- IRAs IRAs for Businesses Qualified Retirement Plans Keogh Plans Solo 401(k) Plans Roth 401(k) Plans 13. Inventory What Is Inventory? Do You Have to Carry an Inventory? Deducting Inventory Costs IRS Reporting 14. More Deductions Advertising Business Bad Debts Casualty Losses Charitable Contributions Clothing Disabled Access Tax Credit License Fees, Dues, and Subscriptions Education Expenses Gifts Insurance for Your Practice Interest on Business Loans Legal and Professional Services Taxes Domestic Production Activities 15. Hiring Employees and Independent Contractors Employees Versus Independent Contractors Tax Deductions for Employee Pay and Benefits Reimbursing Employees Employing Your Family Tax Deductions When You Hire Independent Contractors 16. Professionals Who Incorporate Automatic Employee Status Paying Yourself Employee Fringe Benefits Shareholder Loans 17. How You Pay Business Expenses Your Practice Pays Using Personal Funds to Pay for Business Expenses Your Client Reimburses You Accountable Plans 18. Amending Tax Returns Reasons for Amending Your Tax Return Time Limits for Filing Amended Returns How to Amend Your Return How the IRS Processes Refund Claims 19. Staying Out of Trouble With the IRS 20. Record Keeping and Accounting 21. Help Beyond This Book Se Index

"Aimed at anyone who runs a professional practice, including doctors, dentists, lawyers, engineers, architects and even chiropractors -- to say nothing of accountants. "

 

"Thorough, straightforward and specific, Tax Deductions for Professionals contains all the information you need to take advantage of every money-saving opportunity."

 

Stephen Fishman is the author of many Nolo books, most recently Tax Deductions for Professionals. Other titles include Deduct It! Lower Your Small Business Taxes, Every Landlord's Tax Deduction Guide and Home Business Tax Deductions: Keep What You Earn—plus many other legal and business books. He received his law degree from the University of Southern California in 1979. After time in government and private practice, he became a full-time legal writer in 1983.

 

Tax Deductions For Professionals by Stephen Fishman
Continue Browsing		View Wish List