Publication 334
Tax Guide for Small Business

(For Individuals Who Use Schedule C or C-EZ)

For use in preparing 2002 Returns

Table of Contents

[ Click for Index ]

Publication 334, Tax Guide for Small Business

• Important Changes for 2002
• Important Changes for 2003
• Important Reminders
• 1. Filing and Paying Business Taxes
  • Identification Numbers
  • Income Tax
    • Do I Have To File an Income Tax Return?
    • How Do I File?
    • IRS
      • Using an Authorized IRS
      • Using Your Personal Computer
      • Through Employers and Financial Institutions
      • Free Help With Your Return
    • When Is My Tax Return Due?
    • How Do I Pay Income Tax?
  • Self-Employment Tax
  • Employment Taxes
  • Excise Taxes
  • Information Returns
• 2. Accounting Periods and Methods
  • Accounting Periods
  • Accounting Methods
    • Cash Method
      • Income
      • Expenses
    • Accrual Method
      • Income - General Rule
      • Income - Special Rules
      • Expenses
    • Combination Method
    • Inventories
    • Uniform Capitalization Rules
    • Special Methods
    • Change in Accounting Method
• 3. Dispositions of Business Property
  • What Is a Disposition of Property?
  • How Do I Figure a Gain or Loss?
    • Is My Gain or Loss Ordinary or Capital?
    • Is My Capital Gain or Loss Short Term or Long Term?
  • Where Do I Report Gains and Losses?
• 4. General Business Credit
  • How To Claim the Credit
• 5. Business Income
  • Kinds of Income
    • Bartering for Property or Services
    • Real Estate Rents
    • Personal Property Rents
    • Interest and Dividend Income
    • Canceled Debt
      • General Rule
      • Exceptions
      • Exclusions
    • Other Income
  • Items That Are Not Income
  • Accounting for Your Income
• 6. How To Figure Cost of Goods Sold
  • Figuring Cost of Goods Sold - Schedule C Lines 35 - 42
    • Line 35 Inventory at Beginning of Year
    • Line 36 Purchases Less Cost of Items Withdrawn for Personal Use
    • Line 37 Cost of Labor
    • Line 38 Materials and Supplies
    • Line 39 Other Costs
    • Line 40 Add Lines 35 through 39
    • Line 41 Inventory at End of Year
    • Line 42 Cost of Goods Sold
• 7. Figuring Gross Profit
  • Items To Check
  • Testing Gross Profit Accuracy
  • Additions to Gross Profit
• 8. Business Expenses
  • Bad Debts
  • Car and Truck Expenses
    • Methods for Deducting Car and Truck Expenses
    • Reimbursing Your Employees for Expenses
  • Depreciation
  • Employees' Pay
  • Insurance
  • Interest
  • Legal and Professional Fees
  • Pension Plans
  • Rent Expense
  • Taxes
  • Travel, Meals, and Entertainment
  • Business Use of Your Home
  • Other Expenses You Can Deduct
  • Expenses You Cannot Deduct
• 9. Figuring Net Profit or Loss
  • Net Operating Losses (NOLs)
  • Not-for-Profit Activities
• 10. Sample Returns
  • Preparing the Return for Susan J. Brown
    • Schedule C
      • Part I - Income and Part III - Cost of Goods Sold
      • Part II - Expenses
    • Form 4562 - Depreciation and Amortization
    • Schedule SE - Self-Employment Tax
    • Form 1040
  • Preparing the Return for Stanley Price
    • Schedule C-EZ
      • Part I-General Information
      • Part II-Figure Your Net Profit
      • Part III-Information on Your Vehicle
    • Schedule SE - Self-Employment Tax
    • Form 1040
• 11. Your Rights as a Taxpayer
  • Declaration of Taxpayer Rights
  • Examinations, Appeals, Collections, and Refunds
• 12. How To Get More Information
  • Internal Revenue Service
  • Small Business Administration
  • Other Federal Agencies

Index

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A

• Accounting method, Accrual
• Accounting method, Cash
• Accounting method, Change in
• Accounting method, Special
• Accrual method of accounting
• Adjusted basis of property
• Alternative minimum tax
• Appeal rights

B

• Business , Tax kit
• Business income

C

• Calendar tax year defined
• Canceled debt
• Cash discount
• Cash method of accounting
• Change, accounting method
• Collection of tax
• Combination method of accounting
• Condemned property
• Consignments
• Construction allowances
• Cost of goods sold
• Credit, Clean-fuel vehicle
• Credit, Energy
• Credit, General business
• Credit, How to claim
• Credit, Reforestation
• Credit, Rehabilitation

D

• Damages as income
• Debt, Bad
• Debt, Canceled
• Debt, Qualified real property business
• Debts, Refund offset against
• Deductions, Travel expenses
• Definitions, Accounting method
• Definitions, Accounting period, Tax year
• Definitions, Bartering
• Definitions, Basis
• Definitions, Business bad debt
• Definitions, Cash discount
• Definitions, Dispositions of property
• Definitions, Drawing account
• Definitions, Entertainment expenses
• Definitions, Fringe benefit
• Definitions, Local transportation expenses
• Definitions, Net operating loss
• Definitions, Nonbusiness bad debt
• Definitions, Ordinary expense, Necessary expense
• Definitions, Principal place of business
• Definitions, Qualified long-term real property
• Definitions, Rent
• Definitions, Restricted property
• Definitions, Retail space
• Definitions, Self-employment tax
• Definitions, Sole proprietor, Statutory employee
• Definitions, Tax home
• Definitions, Travel expenses
• Depreciation, Deduction
• Depreciation, Listed property
• Depreciation, Recapture
• Disposition of property, Business property
• Disposition of property, Installment sale
• Disposition of property, Like-kind exchange
• Dividend income
• Donation of inventory

E

• e-file
• Employee benefit programs
• Employees' pay
• Employer identification number (EIN)
• Escrow, payments placed in
• Examinations (audits)
• Expenses

F

• Fair market value defined
• Filing business taxes
• Fiscal tax year defined
• Form
• Form 4797
• Form, 1040
• Form, 1040-ES
• Form, 1040-V
• Form, 1040-V
• Form, 1099-B
• Form, 1099-MISC
• Form, 1099-MISC
• Form, 1128
• Form, 2210
• Form, 2290
• Form, 3115
• Form, 3468
• Form, 3800
• Form, 4562
• Form, 4684
• Form, 4797
• Form, 4797
• Form, 4868
• Form, 5884
• Form, 6251
• Form, 6252
• Form, 6478
• Form, 6765
• Form, 720
• Form, 8300
• Form, 8582-CR
• Form, 8586
• Form, 8594
• Form, 8820
• Form, 8824
• Form, 8824
• Form, 8826
• Form, 8829
• Form, 8830
• Form, 8835
• Form, 8844
• Form, 8845
• Form, 8846
• Form, 8847
• Form, 8857
• Form, 8861
• Form, 8884
• Form, 982
• Form, Schedule C
• Form, Schedule C-EZ
• Form, SS-4
• Form, SS-5
• Form, W-2
• Form, W-7
• Form, W-9
• Free tax services

G

• Gross profit, Accuracy
• Gross profit, Additions to

H

• Health insurance, deduction for self-employed
• Help from Small Business Administration
• Home, business use of

I

• Identification numbers
• Income tax, How to pay
• Income tax, Underpayment penalty
• Income, Bonus
• Income, Cancelled lease payments
• Income, Dividend
• Income, How to account for
• Income, Paid to a third party
• Income, Paid to a third party
• Income, Prepaid rent
• Income, Rental
• Independent contractor
• Individual taxpayer identification number (ITIN)
• Information returns
• Innocent spouse relief
• Installment sales
• Insurance, Expense
• Insurance, Proceeds
• Interest, Expense
• Inventories
• IRS mission

K

• Kickbacks
• Kickbacks

L

• Like-kind exchanges
• Like-kind exchanges
• Lodging
• Lost income

M

• Mileage rate for vehicles

N

• Net profit or loss
• Nondeductible insurance premiums
• Nonemployee compensation
• Nontaxable exchanges
• Not-for-profit activities

O

• Ordinary gain or loss
• Other deductible expenses
• Other nondeductible expenses

P

• Pay, different kinds of
• Penalty, Failure to file information returns
• Penalty, Failure to furnish correct payee statements
• Pension plans
• Prepaid expense, Extends useful life
• Prepaid expense, Rent
• Professional fees
• Promissory notes

R

• Real estate rents
• Recovery of deductions
• Refund, claim for
• Related persons, Special rule
• Related persons, Unreasonable rent
• Repayment of income
• Restricted property

S

• Sale of a business
• Sample returns
• Section 179 deduction
• Self-employment tax, Tax rate
• Self-employment tax, Time limit for posting income
• Short-term capital gain or loss
• Social security coverage
• Social security number (SSN)
• Statutory employee
• Suggestions for publication

T

• Tax home
• Tax preparation fees
• Tax return, Who must file
• Tax shelter disclosure state
• Tax year
• Taxes, Deduction for
• Taxes, Employment
• Taxes, Employment
• Taxes, Excise
• Taxes, Excise
• Taxes, Fuel
• Taxes, Income
• Taxes, Income
• Taxes, Personal property
• Taxes, Real estate
• Taxes, Sales
• Taxes, Self-employment
• Taxpayer Advocate
• Taxpayer rights
• Tolls
• Trade discount
• Trade discount
• Truck expenses
• Truck expenses
• TTY/TDD information

U

• Uniform capitalization rules