The learning objective of this course is to review taxes for small businesses. The business use of your home is a key element of this course.
Lesson and Objectives |
Reading
Assignment |
1. Introduction and Filing and Paying Business Taxes |
Tax Guide for Small Business |
The learning objectives for this lesson are to introduce the tax guide for small business and gain an understanding of:
- Identification numbers
- Income tax
- Self-employment tax
- Employment taxes
- Excise taxes
- Information returns
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2. Accounting Periods and Methods |
Tax Guide for Small Business |
The learning objectives for this lesson are to gain an understanding of:
- Accounting periods
- Accounting methods
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3. Dispositions of Business Property |
Tax Guide for Small Business |
The learning objectives for this lesson are to gain an understanding of:
- What is a disposition of property?
- How to figure a gain or loss
- Reporting gains and losses
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4.. General Business Credits |
Tax Guide for Small Business |
The learning objectives for this lesson are to gain an understanding of:
- Business credits
- How to claim the credit
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5. Business Income |
Tax Guide for Small Business |
The learning objectives for this lesson are to gain an understanding of:
- Kinds of income
- Items that are not income
- Guidelines for selected occupations
- Accounting for your income
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6. How to Figure Cost of Goods Sold |
Tax Guide for Small Business |
The learning objectives for this lesson are to gain an understanding of:
- Figuring cost of goods sold
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7. Figuring Gross Profit |
Tax Guide for Small Business |
The learning objectives for this lesson are to gain an understanding of:
- Items to check
- Testing gross profit accuracy
- Additions to gross profit
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8. Business Expenses |
Tax Guide for Small Business |
The learning objectives for this lesson are to gain an understanding of:
- Bad debts
- Car and truck expenses
- Depreciation
- Employee's pay
- Interest
- Legal and professional fees
- Pension plans
- Rent expense
- Travel, meals, and entertainment
- Business use of your home
- Other expense you can deduct
- Expenses you cannot deduct
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9. Figuring Net Profit or Loss |
Tax Guide for Small Business |
The learning objectives for this lesson are to gain an understanding of:
- Net operating losses
- Not-for-profit activities
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10. Self-Employment Tax |
Tax Guide for Small Business |
The learning objectives for this lesson are to gain an understanding of:
- Who must pay self-employment tax?
- Reporting self-employment tax
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11. Business Use of Your Home |
Business Use of Your Home |
The learning objectives for this lesson are to introduce the business use of your home and gain an understanding of:
- Qualifying for a deduction
- Figuring the deduction
- Deducting expenses
- Depreciating your home
- Daycare facility
- Sale or exchange of your home
- Business furniture and equipment
- Recordkeeping
- Where to deduct
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12. Installment Sales |
Installment Sales |
The learning objectives for this lesson are to gain an understanding of:
- What is an installment sale
- Figuring installment sale income
- Reporting installment sale income
- Electing out of the installment method
- Payments received or considered received
- Escrow accounts
- Depreciation recapture income
- Sale to a related person
- Like-kind exchange
- Contingent payment sale
- Single sale of several assets
- Sale of a business
- Unstated interest and orignial issue discount (OID)
- Disposition of an installment obligation
- Repossession
- Reporting an installment sale
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1. Al is a self-employed accountant and he is a member of a barter club. He recently began performing accounting services in exchange for general maintenance at his home that is performed by Pete, who is another member of the club. The value of the services was never discussed ahead of time. Which of the following is NOT true?
a. Pete must include the fair market value of the accounting services in his gross receipts.
b. Al must include in gross receipts the fair market value of the maintenance services he received.
c. Members of a legitimate barter club do not have to include the costs of bartered services in gross receipts.
d. If Al and Pete had both agreed ahead of time on the value of the services, that value will be accepted as the fair market value unless the value can be shown to be otherwise.
2. Monica is employed as a Reading and English teacher at Eisenhower Middle School. She is required to teach students at the school and grade papers and tests. Eisenhower provides a small office where she can meet with parents and students, grade papers and prepare lesson plans.
Even though the school does not require her to work at home, Monica prefers to exclusively use the office she has set up in her spare bedroom at home, and does not use the office provided by the school. She also runs a small jewelry business at home, but operates it from her garage.
