J.K. Lasser's Small Business Taxes 2021 Your Complete Guide to a Better Bottom Line

Minimize your taxes and maximize your refund with this expert guide to your small business tax return

Taxes remain one of the biggest headaches and costs for small businesses around the United States. J.K. Lasser's Small Business Taxes 2021 delivers an approachable but expert guide in legally limiting your tax liabilities while maximizing your deductions and credits. You'll be in great hands as Barbara Weltman – attorney, expert, and author – shows you what tax relief is available to you and how to claim it.

You'll discover how to:

• Make tax-savvy business decisions
• Take advantage of COVID-19-related tax breaks
• Pick the right forms to claim available deductions and credits
• Use legal and effective tax strategies to minimize your taxes payable
• Use sample forms and checklists to get organized
• Keep the right records in case the IRS comes calling

Whether you’re filing your small business’ taxes or you work with a tax professional, J.K. Lasser's Small Business Taxes 2021 will walk you through the tax process for 2020 returns and tax planning for 2021 to optimize your tax savings and minimize your audit exposure.

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

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.