I had never heard of Gary W. Carter and had never read any of his books until now Ė 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 formidable IRS forms that need to be filled out properly in order to qualify for deductions and avoid being audited. If this is you, get this book. You will not be disappointed.
Gary W. Carter, 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 coming years serve to give you a much better understanding of 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 IRS give you a wealth of information to belay your tax fears, and empower you with knowledge you need to get most out of tax time.
The very first chapter in book covers IRS audits. It tells you how audits are done, what to expect and what rights you have. I was surprised to find process is actually simple, direct and fairly non-threatening. From chapter two and on, Carter delves deeply into information of most importance to home-business owners. Topics include legal definition of a business for tax purposes, allowable deductions and how to record and calculate them, business entity formations and pros, cons and red tape associated with each, and more.
Chapter three is devoted to legal entity structure of your business. It goes into more detail than I have yet to find anywhere else Ė and it uses language understandable by even general public. If you've been reading advice that strongly suggests forming a corporation for legal and tax reasons, and struggling over whether benefits of this move will outweigh red tape that comes with it, you will love this chapter.
Now in all honesty, reading chapter three first time through was slightly overwhelming due to 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 Ė information will be immensely helpful whether it is your first or tenth time reading it.