Publication 334 (2008), Tax Guide for Small Business

A

Accounting method:

Accrual, Accrual Method, Accrual method.
Automatic procedures, Automatic change procedures.
Cash, Cash Method, Cash method.
Change in, Change in Accounting Method
Combination, Combination Method
Special, Special Methods

Accounting periods, Accounting Periods

Accrual method:

Income - general rule, Income—General Rule
Income - special rules, Income—Special Rules
Of accounting, Accrual Method

Adjusted basis, Adjusted basis.

Administrator, Executor or administrator.

Agricultural chemicals security credit, Agricultural chemicals security credit (Form 8931).

Alcohol and cellulosic biofuel fuels credit, Alcohol and cellulosic biofuel fuels credit (Form 6478).

Alternative fuel vehicle refueling property credit, Alternative fuel vehicle refueling property credit (Form 8911).

Alternative minimum tax, Alternative minimum tax (AMT).

Alternative motor vehicle credit, Alternative motor vehicle credit (Form 8910).

Appeal rights, Appeals.

Appreciation, Appreciation.

Audits, Examinations (audits).

Automobile (see Car expenses)

B

Bad debts, Bad Debts
Barter income, Bartering for Property or Services
Basis of property, Basis.
Biodiesel and renewable diesel fuels credit, Biodiesel and renewable diesel fuels credit (Form 8864).
Bribes, Expenses You Cannot Deduct
Business expenses, Business Expenses
Business income, Business Income
Business use of your home, Business Use of Your Home

C

Canceled debt, Canceled Debt

Cancellation of qualified real property business debt, Cancellation of qualified real property business debt.

Capital gain or loss, Is My Gain or Loss Ordinary or Capital?

Car expenses, Car and Truck Expenses, Methods for Deducting Car and Truck Expenses

Carbon dioxide sequestration credit, Carbon dioxide sequestration credit (Form 8933).

Cash discount, Cash discounts., Cash discounts.

Cash method:

Expenses, Expenses
Income, Income

Changing accounting method, Changing accounting method.

Charitable contributions, Expenses You Cannot Deduct

Claim for refund, Refunds.

Collection of tax, Collections.

Combination method of accounting, Combination Method

Comments on publication, Comments and suggestions.

Condemned property, Condemned property.

Consignments, Consignments.

Construction allowances, Construction allowances.

Cost of goods sold, How To Figure Cost of Goods Sold

Credit

Carbon dioxide sequestration, Carbon dioxide sequestration credit (Form 8933).

Credit for employer-provided childcare facilities, Credit for employer-provided childcare facilities and services (Form 8882).

Credit for small employer pension plan startup costs, Credit for small employer pension plan startup costs (Form 8881).

Credit:

Advanced lean burn technology motor vehicle credit, Alternative motor vehicle credit (Form 8910).
Agricultural chemicals security, Agricultural chemicals security credit (Form 8931).
Alcohol and cellulosic biofuel fuels, Alcohol and cellulosic biofuel fuels credit (Form 6478).
Alternative fuel vehicle refueling property, Alternative fuel vehicle refueling property credit (Form 8911).
Alternative motor vehicle, Alternative motor vehicle credit (Form 8910).
Biodiesel fuels, Biodiesel and renewable diesel fuels credit (Form 8864).
Diesel fuels, renewable, Biodiesel and renewable diesel fuels credit (Form 8864).
Disabled access, Disabled access credit (Form 8826).
Distilled spirits, Distilled spirits credit (Form 8906).
Employer-provided childcare, Credit for employer-provided childcare facilities and services (Form 8882).
Empowerment zone employment, Empowerment zone and renewal community employment credit (Form 8844).
Energy efficient appliance, Energy efficient appliance credit (Form 8909).
Energy efficient home, Energy efficient home credit (Form 8908).
How to claim, How To Claim the Credit
Indian coal, Renewable electricity, refined coal, and Indian coal production credit (Form 8835).
Indian employment, Indian employment credit (Form 8845).
Investment, Investment credit (Form 3468).
Low sulfur diesel fuel production, Low sulfur diesel fuel production credit (Form 8896).
Low-income housing, Low-income housing credit (Form 8586).
Mine rescue team training, Mine rescue team training credit (Form 8923).
New markets, New markets credit (Form 8874).
Nonconventional source fuel, Nonconventional source fuel credit (Form 8907).
Orphan drug, Orphan drug credit (Form 8820).
Qualified alternative fuel motor vehicle credit, Alternative motor vehicle credit (Form 8910).
Qualified fuel cell motor vehicle credit, Alternative motor vehicle credit (Form 8910).
Qualified hybrid motor vehicle credit, Alternative motor vehicle credit (Form 8910).
Qualified railroad track maintenance, Qualified railroad track maintenance credit (Form 8900).
Refined coal, Renewable electricity, refined coal, and Indian coal production credit (Form 8835).
Renewable electricity, Renewable electricity, refined coal, and Indian coal production credit (Form 8835).
Research, Credit for increasing research activities (Form 6765).
Small employer pension plan startup costs, Credit for small employer pension plan startup costs (Form 8881).
Taxes paid on certain employee tips, Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846).
Welfare-to-work, Welfare-to-work credit (Form 8861).
Work opportunity, Work opportunity credit (Form 5884).

D

Damages, Damages.

Debt:

Bad, Bad Debts
Canceled, Canceled Debt
Qualified real property business, Qualified real property business debt.
Refund offset against, Offset against debts.

Definitions:

Accounting methods, Accounting Methods
Accounting periods, Accounting Periods
Barter, Bartering for Property or Services
Basis, Basis.
Business bad debt, Business bad debt.
Calendar tax year, Calendar tax year.
Cash discount, Cash discounts., Cash discounts.
Disposition of property, What Is a Disposition of Property?
Drawing account, Merchandise withdrawn from sale.
Entertainment expenses, Entertainment expenses.
Fair market value, Fair market value.
Fiscal tax year, Fiscal tax year.
Fringe benefit, Fringe benefits.
Local transportation expenses, Local transportation expenses.
Necessary expense, Introduction
Net operating loss, Net Operating Losses (NOLs)
Nonbusiness bad debt, Nonbusiness bad debts.
Ordinary expense, Introduction
Principal place of business, Principal place of business.
Qualified long-term real property, Qualified long-term real property.
Qualified real property business debt, Cancellation of qualified real property business debt.
Rent, Rent Expense
Restricted property, Other Income
Retail space, Retail space.
Self-employment (SE) tax, Self-Employment (SE) Tax
Sole proprietor, Sole proprietor.
Tax home, Local transportation expenses.
Trade discount, Trade discounts., Cash discounts.
Travel expenses, Travel, Meals, and Entertainment

Depreciation, recapture, Recapture of depreciation.

Depreciation:

Deduction, Depreciation
Listed property, Listed property.

Direct seller, Direct seller., Real estate agent or direct seller.

Disabled access credit, Disabled access credit (Form 8826).

Disposition of property:

Business property, Introduction
Installment sale, Installment sales., Installment sales.
Like-kind exchange, Like-kind exchanges., Like-kind exchanges., Exchange of like-kind property.
Nontaxable exchange, Nontaxable exchanges.
Sale of a business, Sale of a business.

Distilled spirits credit, Distilled spirits credit (Form 8906).

Dividend income, Interest and Dividend Income

Donation of inventory, Donation of inventory.

Drawing account, Merchandise withdrawn from sale.

Due date of return, When Is My Tax Return Due?

E

e-file, IRS e-file (Electronic Filing)

Economic injury, Economic injury.

EFTPS, EFTPS

Electronic filing, IRS e-file (Electronic Filing)

Employee, Employee.

Employee benefit programs, Fringe benefits.

Employees' pay, Employees' Pay

Employer identification number (EIN), Employer identification number (EIN).

Employment taxes:

About, Employment Taxes
Deduction for, Employment taxes.

Empowerment zone employment credit, Empowerment zone and renewal community employment credit (Form 8844).

Energy efficient appliance credit, Energy efficient appliance credit (Form 8909).

Energy efficient home credit, Energy efficient home credit (Form 8908).

Entertainment expenses, Entertainment expenses. (see Travel expenses)

Escrow, payments placed in, Payment placed in escrow.

Estimated tax, How Do I Pay Income Tax?

Examinations (audits), Examinations (audits).

Excise taxes:

About, Excise Taxes
Deduction for, Excise taxes.

Executor, Executor or administrator.

Expenses:, Business Expenses

Bad debts, Bad Debts
Car, Car and Truck Expenses
Depreciation, Depreciation
Employees' pay, Employees' Pay
Entertainment, Travel, Meals, and Entertainment
Home, business use, Business Use of Your Home
Insurance, Insurance
Interest, Interest
Legal and professional fees, Legal and Professional Fees
Meals, Travel, Meals, and Entertainment
Nondeductible, Expenses You Cannot Deduct
Other, Other Expenses You Can Deduct
Pension plans, Pension Plans
Rent, Rent Expense
Taxes, Taxes
Travel, Travel, Meals, and Entertainment
Truck, Car and Truck Expenses

F

Fair market value, Fair market value.

Filing business taxes, Filing and Paying Business Taxes

Fishing crew member, Fishing crew member., Fishing crew member.

Form

6478 (alcohol and cellulosic biofuel fuels), Alcohol and cellulosic biofuel fuels credit (Form 6478).

Form:

1040 (tax return), How Do I File?
1040-ES (estimated tax), How Do I Pay Income Tax?
1040-V (voucher), Balance due.
1099-B (barter), Information returns.
1099-MISC (miscellaneous), Form 1099-MISC., Information returns.
1128 (change tax year), Change in tax year.
2210 (underpayment of estimated tax), Penalty for underpayment of tax.
2290 (excise tax for heavy trucks), Form 2290.
3115 (change accounting method), Change in Accounting Method
3468 (investment credit), Investment credit (Form 3468).
3800 (general business credit), Useful Items - You may want to see:
4562 (depreciation), Form 4562.
4684 (casualty and theft), Casualties and thefts.
4797 (sale of business property), Dispositions of business property and depreciable property., Condemned property., Listed property.
4868 (extension), When Is My Tax Return Due?
5884 (work opportunity credit), Work opportunity credit (Form 5884).
6251 (alternative minimum tax), Useful Items - You may want to see:, Alternative minimum tax (AMT).
6252 (installment sale), Installment sales.
6765 (research credit), Credit for increasing research activities (Form 6765).
720 (excise tax return), Form 720.
8300 (cash payments over $10,000), Form 8300.
8586 (low-income housing credit), Low-income housing credit (Form 8586).
8594 (asset acquisition), Sale of a business.
8820 (orphan drug credit), Orphan drug credit (Form 8820).
8824 (like-kind exchange), Like-kind exchanges., Like-kind exchanges.
8826 (disabled access credit), Disabled access credit (Form 8826).
8829 (business in home), Deduction limit.
8835 (renewable electricity, coal credit), Renewable electricity, refined coal, and Indian coal production credit (Form 8835).
8844 (empowerment zone credit), Empowerment zone and renewal community employment credit (Form 8844).
8845 (Indian employment credit), Indian employment credit (Form 8845).
8846 (credit for social security on tip income), Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846).
8857 (innocent spouse), Innocent spouse relief.
8861 (welfare-to-work credit), Welfare-to-work credit (Form 8861).
8864 (biodiesel/renewable diesel credit), Biodiesel and renewable diesel fuels credit (Form 8864).
8874 (new markets credit), New markets credit (Form 8874).
8879 (self-selected PIN), Using an Authorized IRS e-file Provider
8881 (pension plan startup costs credit), Credit for small employer pension plan startup costs (Form 8881).
8882 (employer-provided childcare credit), Credit for employer-provided childcare facilities and services (Form 8882).
8886 (transaction statement), Reminders
8896 (low sulfur diesel credit), Low sulfur diesel fuel production credit (Form 8896).
8900 (railroad track maintenance credit), Qualified railroad track maintenance credit (Form 8900).
8906 (distilled spirits credit), Distilled spirits credit (Form 8906).
8907 (nonconventional fuel credit), Nonconventional source fuel credit (Form 8907).
8908 (energy efficient home credit), Energy efficient home credit (Form 8908).
8909 (appliance credit), Energy efficient appliance credit (Form 8909).
8910 (alternative vehicle credit), Alternative motor vehicle credit (Form 8910)., Car and Truck Expenses
8911 (alternative fuel refueling property credit), Alternative fuel vehicle refueling property credit (Form 8911).
8931 (agricultural chemicals security), Agricultural chemicals security credit (Form 8931).
982 (discharge of indebtedness), Exclusions
Schedule C (sole proprietor), How Do I File?
Schedule C-EZ (sole proprietor), How Do I File?
Schedule SE (self-employment tax), Who must pay self-employment tax.
SS-4 (application for EIN), Employer identification number (EIN).
SS-5 (application for SSN), Social security number (SSN).
W-2 (report wages), Form W-2.
W-4 (employee withholding), Employee.
W-7 (application for ITIN), Individual taxpayer identification number (ITIN).
W-9 (request for TIN), Other payee.

Fringe benefits, Fringe benefits.

Fuel taxes, Fuel taxes.

G

Gains and losses, Gains and losses.

General business credits, General Business Credits, Business Credits

Gross profit:

Accuracy, Testing Gross Profit Accuracy
Additions to, Additions to Gross Profit

Guidelines for selected occupations, Guidelines for Selected Occupations

(see also Occupations, selected)

H

Health insurance, deduction for self-employed, Self-employed health insurance deduction.
Home, business use of, Business Use of Your Home
Hotels, boarding houses, and apartments, Hotels, boarding houses, and apartments.
Husband and wife business, Husband and wife business.

I

Identification numbers, Identification Numbers

Income

Business, Business Income

Income tax return, who must file, Do I Have To File an Income Tax Return?

Income tax:

About, Income Tax
Deduction for, Income taxes.
How to pay, How Do I Pay Income Tax?
Underpayment penalty, Penalty for underpayment of tax.

Income:, Items That Are Not Income

(see also Not income)
Accounting for your, Accounting for Your Income
Barter, Bartering for Property or Services
Damages, Damages.
Gains and losses, Gains and losses.
Kickbacks, Kickbacks.
Kinds of income, Kinds of Income
Lost income payments, Lost income payments.
Other, Other Income
Paid to a third party, Income paid to a third party.
Personal property rent, Personal Property Rents
Promissory notes, Promissory notes.
Recapture of depreciation, Recapture of depreciation.
Recovery of items previously deducted, Recovery of items previously deducted.
Rental, Real Estate Rents, Personal Property Rents
Restricted property, Restricted property.

Increased deduction limit, What's New for 2008

Independent contractor, Independent contractor., Employment Taxes, Sole proprietor or independent contractor.

Indian employment credit, Indian employment credit (Form 8845).

Individual taxpayer identification number (ITIN), Individual taxpayer identification number (ITIN).

Information returns, Information Returns

Information, How to get more, How To Get More Information

Innocent spouse relief, Innocent spouse relief.

Installment sales, Installment sales.

Insurance agent:

Former, Insurance agent, former.
Retired, Insurance agent, retired.

Insurance:

Expense, Insurance
Nondeductible premiums, Nondeductible premiums.
Prepayment, Prepayment.
Proceeds, Insurance proceeds.
Self-employed health, Self-employed health insurance deduction.

Interest:

Expenses, Interest
Income, Interest and Dividend Income

Inventories, Inventories

Investment credit, Investment credit (Form 3468).

K

Kickbacks, Kickbacks., Expenses You Cannot Deduct

L

Lease bonus, Lease bonus.
Lease cancellation payments, Lease cancellation payments.
Legal fees, Legal and Professional Fees
Like-kind exchanges, Like-kind exchanges., Exchange of like-kind property.
Limited liability company, Limited liability company (LLC).
Listed property, Listed property.
Lobbying expense, Expenses You Cannot Deduct
Local transportation expenses, Local transportation expenses.
Lodging, Meals and lodging.
Long-term capital gain or loss, Is My Capital Gain or Loss Short Term or Long Term?
Lost income payments, Lost income payments.
Low sulfur diesel fuel production credit, Low sulfur diesel fuel production credit (Form 8896).
Low-income housing credit, Low-income housing credit (Form 8586).

M

Meals, Meals and lodging. (see Travel expenses)
Methods for figuring net earnings, Methods for Figuring Net Earnings
Mileage rate for vehicles, Standard mileage rate.
Mine rescue team training credit, Mine rescue team training credit (Form 8923).
Motor vehicle, alternative credit, Alternative motor vehicle credit (Form 8910).

N

Net operating losses, Net Operating Losses (NOLs)

Net profit or loss, Introduction

New markets credit, New markets credit (Form 8874).

Newspaper carrier or distributor, Newspaper carrier or distributor.

Newspaper or magazine vendor, Newspaper or magazine vendor.

Nonbusiness bad debt, Nonbusiness bad debts.

Nonconventional source fuel credit, Nonconventional source fuel credit (Form 8907).

Nondeductible insurance premiums, Nondeductible premiums.

Nonemployee compensation, Introduction

Nontaxable exchanges, Nontaxable exchanges.

Not income:

Appreciation, Appreciation.
Consignments, Consignments.
Constructions allowances, Construction allowances.
Exchange of like-kind property, Exchange of like-kind property.
Leasehold improvements, Leasehold improvements.
Loans, Loans.
Sales tax, Sales tax.

Not-for-profit activities, Not-for-Profit Activities

Notary public, Notary public., Notary public.

O

Occupations, selected

Administrator, Executor or administrator.
Direct seller, Direct seller., Real estate agent or direct seller.
Executor, Executor or administrator.
Fishing crew member, Fishing crew member.
Insurance agent, former, Insurance agent, former.
Insurance agent, retired, Insurance agent, retired.
Newspaper carrier or distributor, Newspaper carrier or distributor.
Newspaper or magazine vendor, Newspaper or magazine vendor.
Notary public, Notary public.
Public official, Public official.
Real estate agent, Real estate agent or direct seller.
Securities dealer, Securities dealer.
Securities trader, Securities trader.

Office in the home, Office in the home.

(see also Business use of your home)

Optional methods, using both, Using Both Optional Methods

Ordinary gain or loss, Is My Gain or Loss Ordinary or Capital?

Orphan drug credit, Orphan drug credit (Form 8820).

P

Parking fees, Parking fees and tolls.

Partners, husband and wife, Husband and wife business.

Pay, kinds of, Kinds of pay.

Paying:

Business taxes, Filing and Paying Business Taxes
Income tax, How Do I Pay Income Tax?

Payments to third parties, Payments to third parties.

Penalties and fines, Expenses You Cannot Deduct

Penalty:

Failure to file Form 8300, Penalties.
Failure to file information returns, Penalties.
Failure to furnish correct payee statements, Penalties.
Underpayment of tax, Penalty for underpayment of tax.
Waiver of, Waiver of penalties.

Pension plans, Pension Plans

Personal property tax, Personal property tax.

Prepaid expense:

Extends useful life, Prepayment.
Rent, Rent paid in advance.

Professional fees, Legal and Professional Fees

Promissory notes, Promissory notes.

Public official, Public official.

Punitive damages, Punitive damages.

Q

Qualified railroad track maintenance credit, Qualified railroad track maintenance credit (Form 8900).
Qualified real property business debt, Qualified real property business debt.

R

Real estate:

Agent, Real estate agent or direct seller.
Dealer, Real estate dealer.
Rent, Real Estate Rents
Taxes, Real estate taxes.

Recovery of items previously deducted, Recovery of items previously deducted.

Refund:

Inquiries, Refund inquiries.
Offsets against debts, Offset against debts.

Related persons:

Unreasonable rent, Unreasonable rent.

Renewable electricity, refined coal, and Indian coal production credit, Renewable electricity, refined coal, and Indian coal production credit (Form 8835).

Rent expense, Rent Expense

Rental income, Real Estate Rents

Repayment of income, Repayment of income.

Reportable transaction disclosure statement, Reminders

Reporting self-employment tax, Reporting Self-Employment Tax

Research credit, Credit for increasing research activities (Form 6765).

Restricted property, Restricted property.

Retirement plans (see Pension plans)

S

Salaries, Employees' Pay

Sale of a business, Sale of a business.

Sale of property, What Is a Disposition of Property?

(see also Disposition of property)

Sales of assets, Introduction

Sales tax, Sales tax.

Schedule C, How Do I File?

Schedule C-EZ, How Do I File?

Schedule SE (Form 1040), Who must pay self-employment tax.

Schedule SE, filing requirement, Reporting Self-Employment Tax

SE tax:

About, Self-Employment (SE) Tax

Aliens, Aliens.

Church employee, Church employee.

Community property income, Community Property Income

Deduction for, Self-employment tax.

Earning credits, Earning credits in 2008 and 2009.

Effects of using an optional method, Effects of using an optional method.

Farm optional method, Farm Optional Method

Fiscal year filer, Fiscal Year Filer

Fishing crew member, Fishing crew member.

Gain or loss, Gain or Loss

Government employee, State or local government employee., Foreign government or international organization employee.

Joint return, Joint return.

Lost income payments, Lost Income Payments

Maximum earnings:

For 2008, What's New for 2008, Maximum earnings subject to SE tax.
For 2009, What's New for 2009
Subject to, Maximum earnings subject to self-employment tax.

Methods for figuring net earnings, Methods for Figuring Net Earnings

More than one business, More Than One Business, More than one business.

Nonfarm optional method, Nonfarm Optional Method

Notary public, Notary public.

Optional methods

Farm, Farm Optional Method
Nonfarm, Nonfarm Optional Method

Rate, SE tax rate.

Regular method, Regular Method

Residing abroad, U.S. citizen or resident alien residing abroad.

Special rules and exceptions, Special Rules and Exceptions

Tax rate, SE tax rate.

Time limit for posting income, The Social Security Administration (SSA) time limit for posting self-employment income.

Who must pay, Who Must Pay SE Tax?

Why use an optional method, Why use an optional method?

Section 179, What's New for 2008

Section 179:

Deduction, Section 179 deduction.
Property, Section 179 property.

Securities:

Dealer, Securities dealer.
Trader, Securities trader.

Self-employed health insurance deduction, Self-employed health insurance deduction.

Self-employment tax (see SE tax)

Self-employment tax: (see SE tax)

Settlement payments, Settlement payments.

Short-term capital gain or loss, Is My Capital Gain or Loss Short Term or Long Term?

Signature, electronic, Electronic signatures.

Small Business Administration, Small Business Administration

Social security coverage, Social security coverage.

Social security number (SSN), Social security number (SSN).

Sole proprietor, Sole proprietor., Sole proprietor or independent contractor.

Sport utility vehicle, Section 179 deduction.

Standard mileage rate:, Standard mileage rate.

For 2008, What's New for 2008
For 2009, What's New for 2009

Statutory employee, Statutory employee.

Suggestions for publication, Comments and suggestions.

SUV, Section 179 deduction.

T

Tax help (see Information, How to get more)

Tax home, Local transportation expenses., Travel expenses.

Tax preparation fees, Tax preparation fees.

Tax refund:

Claim for, Refunds.
Offset against debts, Offset against debts.

Tax return:

How to file, How Do I File?
Who must file, Do I Have To File an Income Tax Return?

Tax year, Accounting Periods

Tax year:

Calendar, Calendar tax year.
Change in, Change in tax year.
Fiscal, Fiscal tax year.

Taxes:

Deduction for, Taxes
Employment, Employment Taxes, Employment taxes.
Excise, Excise Taxes, Excise taxes.
Fuel, Fuel taxes.
Income, Income Tax, Income taxes.
Paid on certain employee tips, Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846).
Personal property, Personal property tax.
Real estate, Real estate taxes.
Sales, Sales tax.
Self-employment, Self-Employment (SE) Tax, Self-employment tax.

Taxpayer Advocate, Contacting your Taxpayer Advocate.

Taxpayer rights, Declaration of Taxpayer Rights

Third parties, Payments to, Payments to third parties.

Tolls, Parking fees and tolls.

Trade discount, Trade discounts., Trade discounts.

Trade or business, Trade or business.

Trailer park owner, Trailer park owner.

Transportation expenses, Local transportation expenses.

Travel expenses, Travel expenses.

U

Underpayment of tax penalty, Penalty for underpayment of tax.
Uniform capitalization rules, Uniform Capitalization Rules

W

Wages, Employees' Pay
Welfare-to-work credit, Welfare-to-work credit (Form 8861).
Work opportunity credit, Work opportunity credit (Form 5884).

Index

A

B

C

D

E

F

G

H

I

K

L

M

N

O

P

Q

R

S

T

U

W