Mastering Tax Preparation for Sole Proprietorships

Mastering Tax Preparation for Sole Proprietorships

ISBN: 978-1-884826-90-0

Learn to: Complete Schedules C and SE (self-employment tax) and Form 1040, Form 4562, Depreciation & Amortization, Form 8829 (home-office deduction). Help clients make better financial decisions by explaining the tax implications of their financial decisions. Get to fill out the key forms and schedules for a typical proprietorship. Double-quiz in each section assures that you master it.

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406 pages [225 self-teaching + 181 self-quizzes with detailed answers]

Section 1: Introduction. How Schedule C and related forms work.

Section 2: How to provide key data. A quick primer on filing key demographic and other facts about the business.

Section 3: Gross income. Taxing income from operations. How to complete Lines 1-7. Clear examples make it easy.

Section 4: Computing COGS. Cost of goods sold for tax purposes. How to complete Part III of Schedule C.

Section 5: Business expenses. Wages, transportation, utilities, rent, etc. Related-party deduction rules.

Section 6: Car and truck expenses. Computing deductible vehicle expense. Actual cost v. standard mileage rate methods.

Section 7: T & E, meal and gift expenses. Reimbursing employee expenses. Business gifts. Recordkeeping requirements.

Section 8: Retirement and benefit plans. Keogh, SEP, employee fringe deductions. Self-employed health insurance.

Section 9: Depreciation and amortization. MACRS, ACRS, other methods. Section 179. Amortizing intangibles. Form 4562.

Section 10: Bad-debt expense. When a debt is partially v. totally worthless. Accounting method. When bad debts are recovered.

Section 11: Deducting other taxes. Maximizing real-estate, payroll, sales and other state and local tax deductions.

Section 12: Deducting interest expense. Borrowing against the proprietor's residence. Capitalization rules. Timing deductibility.

Section 13: Deducting home-office expenses. Requirements. Computing the deduction. How to prepare Form 8829.

Section 14: Computing self-employment tax (Schedule SE). Preparing Schedule SE. How to compute self-employment tax.

Section 15: Business property sales. Real v. personal property. Form 4797. Depreciation recapture. Sec. 1231 gains and losses.

Section 16: Do a comprehensive example. Apply the full course to a single large example of completing Schedule C.

Edition: AIPB

Learn to complete the tax return by computing each line and box with the hands-on case-study data. A double-quiz in each section assures that you master each section of the tax return. Each course concludes by giving you one year’s financial data—and you complete the entire tax return.