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Home Business Tax Deductions

Exam Questions: 80
Course Level: Basic
Pages: 368 | Content: 342, Supplemental: 26
NASBA Area of Study: Taxes
Not Acceptable for: N/A
Version: 7985

This course discusses how home business owners can reduce taxes by taking advantage of the array of deductions available to them. Covering topics from what qualifies as a home business, recordkeeping and accounting, to start up and operating expenses, as well as more advanced deductions such as long-term assets, medical expenses, and retirement plans - this course looks at home business tax issues from all angles. All course material provided. No prerequisites. Course level: Basic.

EA Program Approval Number: ZX34G-T-00421-21-S

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Course Information

Table of Contents
  • Some Tax Basics
  • Is Your Home Business Really a Business?
  • Getting Your Business Up and Running
  • Home Business Operating Expenses
  • Deducting Long-Term Assets
  • The Home Office Deduction
  • The Pass-Through Tax Deduction
  • Getting Around Town: Car and Local Travel Expenses
  • Leaving Town: Business Travel
  • Inventory
  • Hiring Help: Employees and Independent Contractors
  • What if You Get Sick? Deducting Medical Expenses
  • Deductions That Can Help You Retire
  • More Home Business Deductions
  • Recordkeeping and Accounting
  • Businesses Owned by Spouses
  • Eight Tips to Avoiding an IRS Audit
Objectives
  • To identify the most popular entity choice for home businesses
  • To recognize how the IRS determines whether a venture is truly a business or a hobby
  • To recognize how the IRS treats start-up expenses for businesses
  • To recall the difference between current and capital expenses
  • To recall the limits of the de minimis safe harbor rule
  • To recall the requirements of the home office deduction
  • To recall the maximum qualified business income deduction available to qualifying taxpayers
  • To identify the actual car expenses that can be deducted when using the standard mileage rate
  • To recall the required characteristics of acceptable business travel for tax purposes
  • To recall the characteristics of inventory and the various methods for valuing it
  • To identify the differences between employees and independent contractors
  • To recall various requirements of the Affordable Care Act
  • To recall the characteristics of various retirement accounts
  • To identify the requirements of various available home business deductions
  • To recall the most common reason taxpayers lose deductions when they get audited by the IRS
  • To recognize the number of hours required in order to satisfy the material participation requirement for a qualified joint venture
  • To recall the income-to-deduction ratio that will cause a return to be tagged for audit

PLEASE NOTE: CPE credit measurement is based on NASBA Registry and QAS guidelines of one credit for every 50 minutes. Credit calculation may vary in different states — check with your State Board of Accountancy. Unless otherwise noted in the specific course description, no advanced preparation is required in order to register or complete any PES CPE course. Use of materials or services provided by Professional Education Services, LP ("PES") are governed by the Terms and Conditions stated on PES' website www.mypescpe.com. PES provides these courses with the understanding that it is not providing any accounting, legal, or other professional advice and assumes no liability whatsoever in connection with its use. PES has used diligent efforts to provide quality information and material to its customers, but does not warrant or guarantee the accuracy, timeliness, completeness, or currency of the information contained herein. Ultimately, the responsibility to comply with applicable legal requirements falls solely upon the individual licensee, not PES. PES encourages you to contact your state Board for the latest information and to confirm or clarify any questions or concerns you have regarding your duties or obligations as a licensed professional.