Don't Let the IRS Destroy Your Small Business: 76 Mistakes to Avoid by Michael Savage | 9780201311457 | Paperback | Barnes & Noble
Don't Let the IRS Destroy Your Small Business: 76 Mistakes to Avoid

Don't Let the IRS Destroy Your Small Business: 76 Mistakes to Avoid

by Michael Savage
     
 

ISBN-10: 0201311453

ISBN-13: 9780201311457

Pub. Date: 01/28/1998

Publisher: Basic Books


In this lively book, veteran tax attorney Michael Savage provides essential tax advice to small business owners, many of whom pay exorbitant tax fees for mistakes that may have easily been avoided. Without staff attorneys at their disposal, small businesses can get into big financial trouble, not out of dishonesty, but because they don’t know where the

Overview


In this lively book, veteran tax attorney Michael Savage provides essential tax advice to small business owners, many of whom pay exorbitant tax fees for mistakes that may have easily been avoided. Without staff attorneys at their disposal, small businesses can get into big financial trouble, not out of dishonesty, but because they don’t know where the potential tax landmines lie.Concise, practical and irreplaceably instructive, Don’t Let the IRS Destroy Your Small Business covers seventy-six areas of tax law that cause business owners the most trouble, regardless of what business they are in: payroll tax liability, excessive salaries, travel and entertainment expenses, fringe benefits, pension plans, owning multiple companies, and many more.

Product Details

ISBN-13:
9780201311457
Publisher:
Basic Books
Publication date:
01/28/1998
Pages:
192
Sales rank:
1,218,797
Product dimensions:
5.36(w) x 8.27(h) x 0.55(d)
Lexile:
1330L (what's this?)

Table of Contents

Introduction: Who Makes the Mistakes and Why? xv
Chapter One Interest and Penalties
1(3)
Mistake 1: Underestimating the cost of mistakes.
1(3)
Chapter Two Employees
4(12)
Mistake 2: Using withheld payroll taxes to run your business.
5(2)
Mistake 3: "If it's not my company, it's not my problem."
7(1)
Mistake 4: Your partners will help you pay unremitted payroll taxes.
8(1)
Mistake 5: "I didn't know; therefore, I'm not liable."
8(1)
Mistake 6: The revolving loan agreement from hell.
9(1)
Mistake 7: Failing to fight payroll tax assessments.
10(3)
Mistake 8: Failing to review the number of withholding tax exemptions claimed by your employees.
13(3)
Chapter Three Independent Contractors
16(12)
Mistake 9: Treating an employee as an independent contractor.
18(3)
Mistake 10: Overlooking the safe-harbor rule for independent contractors.
21(3)
Mistake 11: Failing to get proof of tax payments from not-so-independent contractors.
24(1)
Mistake 12: Treating yourself as an independent contractor to your own company.
25(1)
Mistake 13: Letting not-so-independent contractors destroy your pension plan.
26(1)
Mistake 14: Sticking your head in the sand over independent contractors.
26(2)
Chapter Four Salaries, Dividends, and Loans
28(16)
Mistake 15: Failing to document the reasonableness of your salary.
29(5)
Mistake 16: Overlooking the accumulated earnings tax.
34(2)
Mistake 17: Failing to treat a loan from your company as a real loan.
36(3)
Mistake 18: Failing to charge yourself adequate interest for a loan from your company.
39(3)
Mistake 19: Putting too much capital (and not enough debt) into your company.
42(2)
Chapter Five Travel and Entertainment Expenses
44(21)
Mistake 20: Reimbursing expenses that are not deductible above-the-line.
46(1)
Mistake 21: Failing to distinguish between reimbursements of bona fide business expenses and nonbusiness expenses.
47(4)
Mistake 22: Disregarding the business connection rule when company credit cards are used.
51(1)
Mistake 23: Failing to substantiate the business or entertainment expense.
51(7)
Mistake 24: Failing to make your employees return unsubstantiated business expense advances.
58(2)
Mistake 25: Overpaying per diem reimbursements.
60(2)
Mistake 26: Paying per diem rates to yourself.
62(1)
Mistake 27: Overlooking the other substantiation rules when you use per diem reimbursements.
62(1)
Mistake 28: Not having a written accountable plan.
63(2)
Chapter Six Cars, Planes, and Other Fringe Benefits
65(12)
Mistake 29: Not understanding whether a perk is tax-free.
66(1)
Mistake 30: Paying too many small perks.
67(1)
Mistake 31: Giving employees too large a discount.
68(1)
Mistake 32: Failing to define the working condition fringe benefit.
69(1)
Mistake 33: Failing to substantiate the working condition that makes the perk tax-free.
70(1)
Mistake 34: Failing to determine whether you should be providing a perk.
71(1)
Mistake 35: Misvaluing the perk.
72(3)
Mistake 36: Using the cents-per-mile rule when it's not permitted.
75(2)
Chapter Seven Home-Office Deductions
77(11)
Mistake 37: Failing to qualify for the home office deduction.
78(3)
Mistake 38: Failing the convenience of the employer test.
81(1)
Mistake 39: Failing to use your home office regularly and exclusively for business.
82(1)
Mistake 40: Failing to make the value of the home-office deduction worthwhile.
83(5)
Chapter Eight Deducting Interest on Business Loans
88(14)
Mistake 41: Borrowing money yourself when your corporation needs money.
89(1)
Mistake 42: Borrowing money yourself to make investments when you own a corporation.
90(1)
Mistake 43: Letting your corporation borrow money when you should have borrowed it yourself.
91(2)
Mistake 44: Failing to separate your business and investment borrowings.
93(1)
Mistake 45: Overlooking the first-in-first-out rule.
94(1)
Mistake 46: Failing to spend loan proceeds on the business within 30 days.
95(1)
Mistake 47: Overlooking the last-in-first-out rule.
96(1)
Mistake 48: Paying business debts just before you get the loan.
97(1)
Mistake 49: Failing to maintain two accounts.
98(1)
Mistake 50: Neglecting the tracing rules in your partnership.
99(1)
Mistake 51: Overlooking special rules for S corporations and partnerships.
100(2)
Chapter Nine Retirement Plans
102(14)
Mistake 52: Choosing the wrong kind of plan.
103(3)
Mistake 53: Underestimating the cost of your retirement plan.
106(4)
Mistake 54: Overestimating the amount of contributions that you can make.
110(3)
Mistake 55: Terminating your plan soon after starting it.
113(1)
Mistake 56: Letting your plan become disqualified.
113(1)
Mistake 57: Engaging in financial transactions with your plan.
114(2)
Chapter Ten S Corporations
116(19)
Mistake 58: Failing to properly elect S corporation treatment.
117(1)
Mistake 59: Waiting too long to make the S corporation election.
118(2)
Mistake 60: Failing to qualify as an S corporation.
120(3)
Mistake 61: Letting your S corporation's status slip away.
123(1)
Mistake 62: Failing to promptly correct an inadvertent disqualification of your S corporation.
124(1)
Mistake 63: Failing to have sufficient basis in your S corporation to claim its losses on your tax return.
125(3)
Mistake 64: Not being an "active participant" in your S corporation.
128(1)
Mistake 65: Going overboard on reducing your salary from an S corporation to save payroll taxes.
128(2)
Mistake 66: Overlooking the restrictions on fringe benefits in an S corporation.
130(1)
Mistake 67: Failing to analyze whether you want (or want to keep) an S corporation.
131(4)
Chapter Eleven Owning More than One Business
135(10)
Mistake 68: Owning more than one business without a holding company.
135(4)
Mistake 69: Assuming that the losses of one S corporation will always offset the profits of another S corporation.
139(1)
Mistake 70: Overcharging or undercharging one of your companies.
140(2)
Mistake 71: Overpaying payroll taxes when you own more than one corporation.
142(2)
Mistake 72: Having more than one corporation.
144(1)
Chapter Twelve Estate Planning for Small-Business Owners
145(16)
Mistake 73: Dying with a business but without an estate plan.
148(3)
Mistake 74: Failing to establish a small gift program.
151(3)
Mistake 75: Failing to fund estate tax liability with insurance.
154(1)
Mistake 76: Failing to freeze the value of your estate.
155(6)
Afterword 161(2)
Index 163

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