Martin J. Kallman > Quotes

“For a sole proprietorship, the business income and expenses are reported on Schedule C of the owner's personal tax return, Form 1040. The sole proprietor pays taxes on the net income from the business as personal income.”
― Martin J. Kallman, Small Business Taxes: The Most Complete and Updated Guide with Tips and Tax Loopholes You Need to Know to Avoid IRS Penalties and Save Money

“If you purchased a building for $200,000 but were eligible to depreciate $5,000 of its value, you would effectively pay just $195,000. If you take depreciation deductions and then sell the property, the $5,000 will be used to pay back those costs. A 25% tax is applied to the recouped funds. If the building were sold for $210,000, the net gain would be $15,000. However, $5,000 of that total would be considered recoupment of the tax break. A maximum of 25% of the amount reclaimed is taxed as regular income. The remaining $10,000 in capital gain would be taxed at the zero, fifteen, or 20% rates described above.”
― Martin J. Kallman, Small Business Taxes: The Most Complete and Updated Guide with Tips and Tax Loopholes You Need to Know to Avoid IRS Penalties and Save Money

“Tax deductibles include all legal, accounting, bookkeeping and other costs your business needs to run properly. You could also get a tax break if you use accounting or bookkeeping software for your business. These IRS rules for legal and professional fees may help you determine whether a certain professional service charge was incurred for business or pleasure.”
― Martin J. Kallman, Small Business Taxes: The Most Complete and Updated Guide with Tips and Tax Loopholes You Need to Know to Avoid IRS Penalties and Save Money

“Filing taxes as a self-employed individual can be more complicated, so it may be beneficial to consider hiring an accountant to help you navigate the tax-saving options and deductions available to you.”
― Martin J. Kallman, Small Business Taxes: The Most Complete and Updated Guide with Tips and Tax Loopholes You Need to Know to Avoid IRS Penalties and Save Money

“Depreciation is the method through which the price of an expensive asset, like a vehicle or piece of equipment, is written off over the course of its useful life rather than all at once in a single tax year. Businesses often use depreciation to get back some of the money they spend on more expensive long-term assets during the time they are useful. Here’s how to calculate depreciation: Depreciation = Initial Investment / Expected Service Life”
― Martin J. Kallman, Small Business Taxes: The Most Complete and Updated Guide with Tips and Tax Loopholes You Need to Know to Avoid IRS Penalties and Save Money