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Tax Issues for Business Owners

NEW: Where do I deduct all my business expenses?

If somebody pays me - it is "income", subject to taxes. If I pay somebody - it is "business expense" which offsets income. Right? Not really. The IRS hates simplicity, and deducting business expenses is a perfect proof. Let's see how the IRS looks at expenses.

Can I deduct this on my tax return?

On the Internet, you can find plenty of lists called something like "500 overlooked business deductions" or "Complete list of everything you can deduct." But in reality, these lists are often misleading or even risky. I suggest a simple 4-step criteria instead.

NEW: Every business owner cheats on taxes!

This must be why they pay no taxes, right? Maybe. The point of this article is to illustrate that so-called "complete honesty" is impossible on a tax return. I will discuss at least three reasons why I am not afraid to make such controversial statement.

Popular tax myths

Ever heard that owning a home or a business is a "tax paradise?" That most personal expenses can be "converted" into deductible business expenses? Or that you can pay taxes 6 months after April 15th? Or that smart people are never audited? Read on!

Home office - deduction or not?

This article was written in my home office. Very convenient indeed: no driving, no gas money, no nice clothes! Can I get some tax deduction on top of that? The answer as a typical lawyer's answer: it depends. There are at least 3 conditions you need to meet.

Payback time: send'm 1099s!

Receiving a 1099 form is painful. It reminds us that we will have to pay taxes on this amount, and now we are "on the IRS radar." But sometimes you yourself have to create those 1099s and send to your contractors, professionals and vendors. Read about the rules.