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Help for Filing your Federal Income Taxes
for Your Small Business


Visit our Etsy shop: GoTo
Go To Great Panes, Kathryn Maloney ©2010-2012
This post is copyrighted–you do not have permission to repost this content elsewhere but you are welcome to link to it if you’d like to share the information.

This time of year many folks seem to have questions about where different business expenses go in your annual income taxes.

Generally, you should get your answers from people in the know–that means directly from the IRS or from an accountant or tax preparer that has experience with small business taxes.

Non-official websites and forums are not a good place to get answers. You’ll never know if the person supplying the info actually has a good understanding of the laws or if they just talk a good game if you don’t go to the source.

In that vein, I offer a few official IRS website links that I have found very helpful. (Links open in a new window or tab depending on your browser settings.)

Do I Need to File a Tax Return? The IRS has tools to help you with that–and if you have to file, you need to report all income, no matter how small or if your business shows a loss/hobby only broke even: Do I Need to File?

Recordkeeping Info from the IRS
http://www.irs.gov/businesses/small/article/0,,id=98575,00.html

For sole proprietorships (info), we report our income and expenses on the Schedule C and submit it with our 1040 to the IRS (and to the state where required).

Form 1040, Schedule C, PDF file
http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

This is the IRS’s instructions for the Schedule C:

Instructions for the 1040 Schedule C
http://www.irs.gov/instructions/i1040sc/index.html
(PDF version)

and the following one answers some of the questions for the Schedule C that the instructions for the Schedule C seem to ignore–it has saved me from many a headache:

Tax Guide for Small Business, Publication 334
(For Individuals Who Use Schedule C or C-EZ)
http://www.irs.gov/publications/p334/index.html
(PDF version: http://www.irs.gov/app/vita/globalmedia/p334.pdf)

Now don’t get overwhelmed by all this, these additional links will come in handy if you get stuck….

Some more tough topics in detail:

Business Expenses, Publication 535
http://www.irs.gov/publications/p535/index.html

Inventories—see Publication 538
http://www.irs.gov/publications/p538/index.html

Travel, Entertainment, Gift & Car Expenses, Pub 463
http://www.irs.gov/publications/p463/index.html

How To Depreciate Property, Publication 946
http://www.irs.gov/publications/p946/index.html

Business Use of Your Home, Publication 587
http://www.irs.gov/publications/p587/index.html

This post is copyrighted–you do not have permission to repost this content elsewhere but you are welcome to link to it if you’d like to share the information.



Visit our Etsy shop: GoTo
Go To Great Panes, Kathryn Maloney ©2010-2012

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