1. SMALL BUSINESS TAX DEDUCTIONS
...and saving money on your tax return
As told by Fred, the TaxCat

2. If you own a company, you must
complete annual tax returns.
If you run a home business and do not
have any employees besides yourself,
taxes immediately became much
easier.

3. Even though your job just
became easier, there is basic but
important tax information you
should know before you get
started, plus tips on how to make
the job simpler.

4. HOME
BUSINESS TAX
DEDUCTIONS

5. HOME
BUSINESS TAX
DEDUCTIONS
When launching a start-
up, many business owners
wonder what costs they
can and can not deduct.

6. HOME
BUSINESS TAX
DEDUCTIONS
A simple rule to follow is
that deductions have to be
both ordinary expenses and
necessary expenses to the
business.

7. HOME
BUSINESS TAX
DEDUCTIONS
There are a variety of
places where
entrepreneurs can deduct
costs. For instance...

8. HOME
BUSINESS TAX
DEDUCTIONS
A few areas are supplies,
advertising, travel and
entertainment, insurance, repairs,
rental fees, worker pay, etc. Also
deductible is the business use of
your home and car.

9. HOME
BUSINESS TAX
DEDUCTIONS
The IRS website has additional
information on write offs.
If you maintain documented receipts
and excellent records of expenditures
regularly, tax returns will be easier to
complete.

10. HOME
BUSINESS TAX
DEDUCTIONS
Use a business credit card
for business expenses.
Do not mingle personal and
business accounts.

11. HOME
BUSINESS TAX
DEDUCTIONS
For people who don't use an
accountant, you may want to
take advantage of a simple
accounting software program like
Quick Books Pro or Quick Books
Simple Start..

12. HOME
BUSINESS TAX
DEDUCTIONS
These programs organize
both income and expenses
so that preparing income tax
returns does not become
overwhelming

13. TAX RETURN
DOCUMENTS

14. TAX RETURN
DOCUMENTS
The income tax forms needed for
a particular business will vary,
depending on the way the
company is organized (a sole
proprietorship, corporation, s
corporation, LLC or partnership).

15. TAX RETURN
DOCUMENTS
You can access the required
forms from the IRS site, with
directions for filling them out.

16. TAX RETURN
DOCUMENTS
According to the IRS website, those
who run a sole proprietorship or
LLC complete a 1040 individual
income tax return form with a
Schedule C Attachment, profit or
loss from business.

17. TAX RETURN
DOCUMENTS
Corporate entities use form
1120 while S corporations
use form 1120-S. Companies
that are partnerships use
form 1065.

18. TAX
PREPARATION
SOFTWARE

19. TAX
PREPARATION
SOFTWARE
A tax professional can be
paid to fill out business
returns, or you can do
them yourself.

20. TAX
PREPARATION
SOFTWARE
Just like individual tax
software, there is do-it-
yourself tax preparation
software for small
businesses.

21. TAX
PREPARATION
SOFTWARE
You can even find home and
business software packages
which include both programs for
preparing personal returns and
corporation business returns.

22. TAX
PREPARATION
SOFTWARE
Buying a multi-software
package most times is
marked down and can be a
great deal for small internet
businesses on a budget.

23. TAX
PREPARATION
SOFTWARE
Recognized companies such
as H&R Block and Intuit
offer home and business
software together that you
can buy for under $100.

24. TAX
PREPARATION
SOFTWARE
For people who do not like to
download and install software,
Tax Act offers a web-based
program that is accessible online
and you don't have to hassle with
any software.

25. TAX
PREPARATION
SOFTWARE
Tax returns filled out by a
tax professional can set you
back $500 or more, so there
is a big cost savings to doing
the work yourself.

26. TAX
PREPARATION
SOFTWARE
However, tax pros typically have
knowledge of little-known
deductions that non-
professionals miss out on, and
professionals can of course save
you the work completing returns.

27. Fred, the TaxCat
C H E C K L I S T S , F O R M S , S O F T WA R E A N D M O R E . . .
www.HomeBusinessCenter.com/tax.html