IRS publications of interest to small business

(You'll find all of the publications we talk about here at the IRS website. To get them in PDF format, select the search drop down option for "Forms & Publications", enter the form number and click "GO". The HTML version is available by searching for the publication number in the "Entire Site" option.)

• Publication 334, Tax Guide for Small Business
Hefty information for individuals who use Schedule C or C-EZ, including sole proprietors, one-person sole members of an LLC, S-corporation entrepreneurs and anyone who wants good all-around small business information.

Particularly helpful is the completed package of sample returns, showing how a clothing store owner filed Form 4562 Depreciation and Amortization, with Schedule SE Self-Employment Tax and Schedule C and how she carried figures forward to her 1040 Individual Income Tax Return. A second sample, from a barber shop owner, uses Schedule C-EZ.

This also touches on business tax credits, depreciation, bartering, employer tax responsibilities, how to figure cost of goods and gross profit.

• Publication 583, Starting a Business and Keeping Records
If you’re preparing to start a business or if you want the easiest intro to IRS publications, start here. It’s relatively short, only 27 pages. But it provides lots of good information, like how to get set up for federal business taxes, when they must be paid and what the penalties are if you’re negligent. It explains what records to keep and for how long. A really cool feature is that it shows actual examples of the types of bookkeeping records they expect. (Although the examples look a little outdated, having been done by hand, your accounting software works according to the same principles.)

• Publication 535, Business Expenses
The bible for what expenses you can and can’t deduct for business. It weighs in at about 60 pages, but seems like double that much info is packed in because the type is so tiny. Less friendly than other IRS publications but introduces concepts not found in the two pubs above. For example, how to distinguish between capital or deductible expenses, and costs for research and development, drilling, environmental cleanup and barrier removal (to make a facility more accessible to all).

• Publication 463, Travel, Entertainment, Gift & Car Expenses
Tiny type again but friendly language and lots of enlightening examples. This publication is not only for business owners, but anyone who travels and entertains for business. Shows sample documentation and tax forms for business travel expenses, plus charts of inclusion amounts for vehicles, including electric cars.

• Publication 587, Business Use of Your Home
Thorough explanations of whether you qualify to deduct for business use of your home,and, if so, what’s deductible and how to compute the amount. Mentions special considerations for day care providers.

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