Tax Deductions for Professionals: Pay Less to the IRS

by Stephen Fishman

Book Overview

A tax deduction guide just for professionals Keep your taxes under control Architects, lawyers, dentists, chiropractors, doctors, and other licensed professionals are subject to special tax rules.... This description may be from another edition of this product.

• Format: Paperback
• Language: English
• ISBN: 1413324606
• ISBN13: 9781413324600
• Release Date: January 2018
• Publisher: NOLO
• Length: 456 Pages
• Weight: 1.60 lbs.
• Dimensions: 0.9" x 6.9" x 8.9"

Customer Reviews

Comprehensive guide on tax deductions for "professional business owners"

I consider myself a professional but I do not have my own business practice. "Tax Deductions for Professionals" is for those who run their own professional practice such as an LLC, LLP, S Corporation, etc. and want to know about the tax implications with regard to their business. It is applicable to many different professional business owners including technologists, accountants, writers, etc. This is the January 2010 edition (outlining 2009 law); and this book is revised yearly. I selected this guide so I could understand the tax ramifications behind a professional business such as an LLC just in case I ever considered going that route. The author really delves into tax deductions in detail. For instance, according to recent tax law, you'll learn things like: - C corporation tax treatment is the only type that allows business owners to retain earnings in their business without paying personal income tax on these earnings. Professionals who do not practice in the field of health, law, accounting, architecture, or consulting can keep up to $250,000 in a C corporation; however, those in these fields are only allowed up to $150,000. - There's a five-car rule that may disallow you from using a standard mileage rate when calculating mileage deductions. - If you travel outside the US for no more than seven days and you spend some time on business-related activities, you can deduct 100% of your airfare. Whereas inside the US you must spend more than half of your time on business to deduct 100% of the airfare. - There are different ways to calculate your home office deduction (room method vs square footage method). - Etc., etc. Every viable tax deduction is subject to exceptions and conditions all of which the author describes in detail in the book. You'll also learn stuff that is not tax related but an eye-opener such you can still be personally liable even though you formed a corporation, LLC, or LLP. I thought forming an LLC limited your liability; but this is not always the case. I also learned why the government indirectly encouraged business owners to buy large SUVs and Hummers; until 2004 business owners could deduct up to $125,000 in one year for such vehicles. In addition, you'll learn how to deduct start-up expenses, handle IRAs, the implications of hiring employees, etc., etc. This guide is just a treasure trove of information for the professional business owner and is explained in enough detail so that almost everyone can understand it. If you are doing your own taxes or just educating yourself on the tax records you should be keeping and want to know how you can maximize your deductions, this is the book to read. However, be prepared for a lot of reading.

Just a bit of an equalizer in the tax game

I've said before (Business Loans from Family & Friends: How to Ask, Make It Legal & Make It Work) that the NOLO books are "well written, easy to understand, and highly useful" and this book just continues that great streak. The U.S. tax code is a jumble of rules and laws that is nearly impossible for ordinary folks to understand, never mind the thought of an average professional (Lawyer, Business person, etc.) wading through the mess while trying to grow their business. The Tax Deductions for Professionals book offers those folks a fair chance at making the right moves from the beginning rather than having to deal with cleaning up mistakes of ignorance they may make. I seem to recall a TV network using a slogan that went something like "The More You Know" or something to that effect, and that's exactly what most people would probably recommend when it comes to dealing with the tax system, especially given the way the IRS is known to look upon deductions that business people take. Without knowing in advance what is and isn't deductible and what kind of documentation is required to support those deductions the cost of this great resource and the time that would be invested in reading through it will seem like a drop in the proverbial bucket.

Great for new professional starting out.

This is a great book for a new professional starting their own office. It steps you through all the different types of business structures for professionals and the tax treat of each, in minute detail. Really great book, we're using it to start a law office. The same author has written another great book, Deduct it! Lower your Small Business Taxes. While it is also a great book, I would suggest that you NOT purchase both books. A lot of large sections of text are identical between the two books. For professionals, I'd just go with this one and skip Deduct It!

A fine steady reference.

Architects, lawyers, physicians and other licensed professionals can all benefit from a tax guide tailored for them in Tax Deductions for Professionals, a survey of the special tax considerations applying to this group. From operating costs and health deductions of a professional business nature to handling entertainment, vehicles and travel, professional fees and more, TAX DEDUCTIONS FOR PROFESSIONALS appears in its second edition to completely update information with the latest tax laws and numbers. Public libraries as well as professional business-oriented collections will find this a fine steady reference. Diane C. Donovan California Bookwatch

Lots of information for physicians and other professionals

Even if you have an accountant and/or financial planner, you are the one ultimately responsible for your own finances. I believe that this book arms you with enough information to make educated financial decisions, and make discussion with accountant and/or financial planner more effective.