Small Business Tax Issues
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Small Business Tax Issues Presented by Phil Nathan, Enrolled Agent H&R Block, Rancho Santa Margarita
Transcript of Small Business Tax Issues
Small Business Tax Issues
Presented by
Phil Nathan, Enrolled Agent
H&R Block, Rancho Santa Margarita
H&R Block Tax Professionals
CertificationsOver 30 hours of additional training annually13 offices in south OC
It's not how much you get... It's how much you get to keep.
Small Business Tax IssuesEntity choice
Sole proprietorship
LLC – Single memberLLC – Two or more members
Partnership
“S” corporation
“C”corporation
Small Business Tax Issues
Entity choice
Sole proprietorshipFederal: Form 1040, Sch CCA: Form 540
Small Business Tax IssuesEntity choiceLLC – Single memberFederal :Form 1040 Sch CCA: Form 568LLC – Two or more membersFederal: Form 1065 Partnership(K-1) CA: Form 565(CA K-1)
Small Business Tax Issues
Entity choicePartnershipFederal: Form 1065(K-1)CA: Form 565 ( CA K-1)
Small Business Tax Issues
Entity choice
Subchapter “S” corporationFederal: Form 1120 S(K-1)CA: Form 100 S(CA K-1)
Small Business Tax Issues
Entity choice
Subchapter “C” CorporationFederal: Form 1120CA: Form 100
Small Business Tax Issues
Starting A Business
Other considerations
Organizing & Start Up Costs
Choice of tax year
Small Business Tax IssuesRunning A Business
RED FLAGS (2010)
Schedule C
Charitable Contributions
Overseas Bank Accounts
Small Business Tax Issues
Home Office ExpenseExclusive Use Rule
REGULARLY & EXCLUSIVELYPrincipal place of business
ExceptionsStorage of inventoryDay care facilities
Small Business Tax Issues
Contractor or Employee
Control
Financial
Relationship
Form SS-8 (IRS decide)
Small Business Tax IssuesNet Operating Losses
Carryback/carryforwardElection to waive carrybackSpecial rules (2008 and FY 2009 NOLs)
Small Business Tax IssuesRunning A Business
Proving legitimacy of deductible expensesDirect evidenceDocumentary evidence
Records,Receipts & Logs!
Saving you money
Self employed:Pre-tax Retirement PlansHealth Insurance Plans
Adjus ted Gros s Income23 Educator expenses (see page 29) . . . . . . . 2324 Certain business expenses of reservists, performing artists, andfee-basis government officials. Attach Form 2106 or 2106-EZ 2425 Health savings account deduction. Attach Form 8889 . 2526 Moving expenses. Attach Form 3903 . . . . . . 2627 One-half of self-employment tax. Attach Schedule SE . 2728 Self-employed SEP, SIMPLE, and qualified plans . . 2829 Self-employed health insurance deduction (see page 30) 2930 Penalty on early withdrawal of savings . . . . . . 3031 a Alimony paid b Recipient’s SSN © 31a32 IRA deduction (see page 31) . . . . . . . . 3233 Student loan interest deduction (see page 34) . . . 3334 Tuition and fees deduction. Attach Form 8917 . . . 3435 Domestic production activities deduction. Attach Form 8903 3536 Add lines 23 through 31a and 32 through 35 . . . . . . . . . . . . . 3637 Subtract line 36 from line 22. This is your adjus ted gros s income . . . © 37
Saving you money
My fees (professional)
Thank You, Phil Nathan E.A.
It's not how much you get …
It's how much you get to keep!
Closing Thoughts
Do you have the right structure for your business?Knowing the Tax Code Qualified Preparer – stands behind their work
