I had never heard of Gary W. Carter and had never read any of
his books until now – and I have to say I'm really glad that I
did.
Anyone who has a home-based business or is contemplating
starting one needs this book on their reference shelf. If you're
like most home-based business owners, you have had numerous
questions about when and how you can take tax deductions for
your home office, supplies and equipment. You've probably
wondered what paperwork had to be kept, what information it
needed to show and how long you have to keep it as well, right?
On top of those questions, there are the formidable IRS forms
that need to be filled out properly in order to qualify for the
deductions and avoid being audited. If this is you, get this
book. You will not be disappointed.
Gary W. Carter, the book's author, has over 20 years of tax
experience. He has worked as a revenue auditor, tax
practitioner, and seminar leader on tax issues as they pertain
to home-based businesses. In this book, he shares his expertise
brilliantly with easy to understand, step by step explanations,
examples and instructions.
Carter's combination of historical tax facts, court cases that
have set precedence, and changes that will take affect in the
coming years serve to give you a much better understanding of
the entire system and your options within that system. His
layman explanations of tax audits, accounting systems, record
keeping, and "business" as it is defined by the IRS give you a
wealth of information to belay your tax fears, and empower you
with the knowledge you need to get the most out of tax time.
The very first chapter in the book covers IRS audits. It tells
you how audits are done, what to expect and what rights you
have. I was surprised to find the process is actually simple,
direct and fairly non-threatening. From chapter two and on,
Carter delves deeply into the information of the most importance
to home-business owners. Topics include the legal definition of
a business for tax purposes, allowable deductions and how to
record and calculate them, business entity formations and the
pros, cons and red tape associated with each, and more.
Chapter three is devoted to the legal entity structure of your
business. It goes into more detail than I have yet to find
anywhere else – and it uses language understandable by even the
general public. If you've been reading advice that strongly
suggests forming a corporation for legal and tax reasons, and
struggling over whether the benefits of this move will outweigh
the red tape that comes with it, you will love this chapter.
Now in all honesty, reading chapter three the first time through
was slightly overwhelming due to the sheer amount of information
available. I admit I skipped or glazed over a few parts because
I couldn't get my head around them, however I learned so much
and answered so many of my own questions that it was well worth
it. If you are overwhelmed as well, sit it on your reference
shelf and refer back to key areas as you need to – the
information will be immensely helpful whether it is your first
or tenth time reading it.
The book continues in this massive information manner
throughout. Additional chapters tackle accounting methods (cash,
accrual or hybrid), explaining how each works, what the IRS
rules are concerning accounting methods and which may be the
best for you.
Allowable deductions are also covered in detail. One chapter is
completely devoted to Transportation deductions and another
explains the most common other business deductions such as
computers, books, magazines, meals, insurance and retirement
plans.
One chapter explains how the sale of your home plays into your
home office tax reports, another details the payment of state,
local, self employment and social security taxes, and another
even tells you which records you should keep and for how long.
Throughout the book, explanations are given as to which IRS
forms need to be filled out for which purposes. Carter even
devotes one entire chapter to explaining Form 8829 (Expenses for
the business use of your home) line by line. At the end of the
book he also provides a comprehensive example of a married
couple: What their income was and from where, how they reported
their income and deductions and so on. Included with the example
are all forms, filled in, that this couple submitted to the IRS
for that year.
Every single chapter in this book includes a Notes section at
the end. The notes' section is an annotated reference list that
tells you where to find government laws and codes, free
publications, court cases cited in the book and more. This
information alone is a goldmine of reference material. In
addition, there are breakout boxes speckled throughout the book
to provide working examples of major points being made.
In summary, this book provides an extremely detailed look at the
legal and monetary side of running a business from your home. It
provides a wealth of information on its own, and expands on that
to provide comprehensive reference materials for anyone that
wants or needs them.
Overall Rating: 5 Stars (out of 5) Pros: You don't have to have
a PhD to understand it Cons: Some of the information can be
overwhelming, especially when references to various IRS form
numbers are given. Considering the complexity of the topic
however, the author did an excellent job. Recommended: Highly
Office Shelf: Reference Availablility: In Stores Now - Check
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