This is my perennial tax book. I know it’s not a page turner like The Survivor (currently #1 on the New York Times best seller list) or Life and Other Near-Death Experiences (currently #1 on Amazon’s best seller list), but I’m proud to say it’s the 22nd year of the original publication, and it’s all new for 2015 returns and year-round tax planning.
I’ve decided to write my own book review to explain the purpose of the book, what’s new, and what’s ahead.
Why small business owners need a tax book
If you are like the vast majority of small business owners (86%), you use a CPA or other tax pro to prepare your business returns. You may even work with tax experts on specific matters, such as succession planning and inventory management. However, it’s my belief that all small business owners need to be informed about taxes and can’t rely solely on CPAs.
The reason: owners, not their accountants or software, run their businesses and make decisions impacted by taxes on a daily basis. Should you hire employees or engage independent contractors? Should you buy or lease equipment? What type of financing should be used? Who should own the truck — the owner or the company? And more.
What the book includes
“Written in a straightforward and accessible style, this reliable resource offers a complete overview of small business tax planning and provides you with the information needed to make tax-smart decisions throughout the year. Focusing on strategies that help you use deductions and tax credits effectively, shield business income, and maximize other aspects of small business taxes, this practical guide will show you how your actions in business today can affect your bottom line from a tax perspective tomorrow.”
This year’s edition includes new or expanded treatment of the Affordable Care Act and employer responsibilities, the so-called repair regulations, the foreign earned income exclusion for small business owners working abroad, and working with a tax professional. Of course, it also reflects all of the new tax rules from legislation, cases, and IRS pronouncements.
Looking ahead
You may be wondering how a book on 2015 taxes can be released when there are dozens of tax breaks that expired at the end of 2014 which may or may not be extended for 2015. This situation isn’t new.
In the past decade, Congress has let tax rules expire only to extend them retroactively by action in December or even January. For example, the American Taxpayer Relief Act of 2012, which extended retroactively 51 tax breaks that had expired the end of 2011, was signed into law on January 2, 2013.
Fortunately, I prepare an online supplement for the book. The supplement not only includes the so-called extenders, but other last-minute developments that may impact tax return preparation for 2015 and tax planning for 2016 and beyond. The supplement is free and should be posted early February 2016.
It’s worth remembering that while the current group of extenders are certainly important for small business owners, most tax rules are well entrenched and do not have to be extended. You can work with these rules to plan for current tax savings.
Interacting with readers
Each year I receive emails from readers asking questions, suggesting future inclusions, and sometimes pointing out errors. I welcome this communication to continually improve the book and provide valuable assistance to small business owners. If you have thoughts on the book, email me at barbara at barbaraweltman dot com.
