Tax Strategies for the SelfEmployed

1
Tax Strategies for the Self-Employed

• Vicki L Mulak, EA, CFP

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Start Up Expenses

• 60-month amortization previous to 10/22/04
• 15 yr amortization after current year deduction
  after 10/22/04

3
Taxation Issues

• Vulnerability to balance due returns
• Timing receipt of SE income
• Reducing SE tax by employing family
• Providing medical benefits under 105

4
Home Office Issues

• Legal shift from personal to business
• Multiple location situations
• Multiple activity situations
• Affect on commuting rules

5
Section 179 Deductions

• Enhanced deductions
• Available on amended returns through 2007
• Includes off-the-shelf software
• Triggering mid-quarter convention
• Maximizing the Section 179 amount

6
Choosing the Right Retirement Plan

• SEP
• SIMPLE-IRA
• Solo 401(k)

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Choosing the Right Retirement Plan

• Set-Up/Maintenance
• How Much Income?
• Contribution Limits