Tax Power For The Self-Employed » (REV)

James O. Parker has repeatedly encountered clients who were somewhat bewildered by our country's tax laws, having been a practicing attorney for almost twenty-five years. Calling upon his twenty-seven years as a educator at Christian Brothers University in Memphis Tennessee, and being a small business owner himself for over forty years, Parker takes the mystery out of the tax code.

A former U.S. Marine and community advocate, Parker possesses both a Masters of Arts in Economics from the

Keep more of what you earn for yourself.

Introduction     vii
Making Money
Being Self-Employed     3
Self-Employment Income     9
Self-Employment Tax vs. FICA
Income
Taxable Income Sources
Nontaxable Income Sources
Hobby Income and Loss     21
Deductions Available for Activities not Engaged in for a Profit
Activities that are Presumed to be Engaged in for a Profit
Combining Activities in Order to Qualify for the Presumption
Proving a Profit Motive when the Presumption does not Apply
Applying the Hobby Loss Rules to Business Entities
Factors that Qualify an Activity as a Trade or Business
Phantom Income     37
Tax Consequences of Increases in Inventory
Tax Consequences of Equipment Purchases
Tax Consequences of Using Profits to Buy Out Other Owners
Tax Consequences of Using Profits to Make Principle Payments on Debts
Tax Consequences of Using Profits from a Trade or Business to Acquire an Additional Trade or Business
Most Common Sources of Phantom Income
Saving Money
Business Deductions for the Self-Employed     55
Business Deductions
Qualifying to Take Business Deductions
Some Specific Business Deductions
Business Deductions that are Subject to Special Limitations
Common Business Deductions
In-Home Office Expense Deductions     89
Uses that Must be Both Exclusive and Regular
Uses that Must be Regular, but not Exclusive
Expenses Eligible for Home Office Deduction
Drawbacks to Taking a Deduction for Business Use of a Residence
Special Rules ConcerningDeduction for Business Use of a Residence
Limitations on the Home Office Deduction
Deductions for the Cost of Goods Sold     105
Nonbusiness Deductions Available to Self-Employed Taxpayers     109
Nonbusiness Adjustments for Adjusted Gross Income
Moving Expenses
Tuition and Fees Deduction
Deduction for One-Half of Self-Employment Tax
Self-Employed Health Insurance Deduction
Deductions for Payments to Retirement Accounts
Nonbusiness Deductions for Adjusted Gross Income
Deductions from Adjusted Gross Income     127
Itemized Deductions
Schedule A Itemized Deductions
Exemptions     155
Personal Exemptions
Exemptions for Dependents
The Phaseout of Exemptions
Federal Income Taxes and Common Tax Credits     163
Regular Federal Income Taxes
Alternative Minimum Tax
Steps in Determining a Self-Employed Taxpayer's Federal Tax Liability
Tax Credits
Personal Credits
Most Common Tax Credits
Retirement Planning for the Self-Employed     187
Individual Retirement Arrangements
Roth IRA
Simplified Employee Pension Plans
Simple IRA
Other Retirement Plans
Tax-Deferred Retirement Options Available to the Self-Employed
Paying Money
Tax Law Compliance by the Self-Employed     201
The Duty to Make Estimated Tax Payments
The Duty to Withhold Taxes from Workers' Earnings
Fulfilling the Duty to Withhold Taxes
Payment of Withholding Taxes
Civil Penalty for Noncompliance
Filing Appropriate Returns
Tax Crimes and the Self-Employed Taxpayer
Summary of an Employer's Duties Regarding Federal Taxes
Checklist of a Self-Employed Party's Duties Regarding Federal Taxes
Glossary     219
Distinguishing between Employees and Self-Employed Independent Contractors     231
Guides for Distinguishing between Independent Contractors and Employees
Form SS-8
Factors that Indicate a Worker is an Independent Contractor
Factors that Indicate a Worker is an Employee
Index     255
About the Author     261