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Washington Watch
October 8, 2003
NASE President Gives Tax
Tips to SBDC Counselors
NASE President and self-employed Certified Public
Accountant Robert Hughes gave small- business
counselors tax tips and strategies to share with their
entrepreneurial clients last week. Focusing on the
‘Schedule C’ tax form, Hughes helped de-mystify the
federal tax codes and guidelines that specifically
apply to sole proprietors.
Offered at the Association of Small Business
Development Centers (ASBDC) annual conference in San
Diego, Hughes’ presentation was an extension of his
book, Schedule C from A to Z: The Micro-Business
Owner’s Guide to Tax Savings. Hughes spoke about the
importance of understanding the rules and nuances of
the ‘Schedule C’ tax form, and how that will help
entrepreneurs avoid costly mistakes that can trigger
an IRS audit.
“As the backbone of the nation's economy, it's
critical that the self-employed receive every
deduction they are entitled to as the basis for
reinvesting in their businesses, especially in today's
challenging environment,” said Hughes.
Since the IRS has very specific rules for categorizing
expenses and deduction qualifications, mistakes are
easy to make on the ‘Schedule C’. For example, the
book advises close scrutiny of categories that on the
surface may sound like catch-all reporting sections,
such as line 18—“Office Expenses.” Despite wording
that suggests otherwise, this category is not intended
for expenses pertaining to office supplies, furniture
or rent, which are to be reported elsewhere. Instead,
this category is for reporting a litany of
miscellaneous items, from janitorial services and
bottled water to maintenance service for plants.
Hughes was asked to speak at the ASBDC annual
conference because of his background as a
self-employed CPA and for the endorsement the NASE
offers local small business development centers (SBDC).
SBDCs, offering free one-on-one counseling and
training sessions on starting and growing a business,
compliment the business and personal benefits NASE
Members receive. Find out more about the services of
SBDCs or locate one near you at
www.asbdc-us.org.
Interested in more tips like this? You can order
Schedule C from A to Z by
logging into your MyNASE Web Account and clicking
on the link under "For Your Business.” You can also
order by calling 1-800-232-6273.
NASE WAC Goes to Washington
The NASE Women’s Advisory Council heads to
Washington, D.C. this week to meet with federal policymakers
and develop plans for the association’s women
entrepreneurship initiative.
In May, the NASE appointed ten member micro-business owners
to the new Council, charged with assisting the association
in meeting the unique challenges facing women-owned
micro-businesses. Over the past several months, the Council
focused on three topics: advocacy, benefits and visibility
and developed work plans for NASE growth.
After meeting with several representatives from the Bush
Administration on Thursday for a policy briefing, the
Women’s Advisory Council will refine their work plans for
presentation to the NASE Board of Directors later this
month.
Check back to Washington Watch next week, for a complete
update on the Council’s activities.
For more information on the Women’s Advisory Council,
click here.
IRS Guidelines on New Depreciation
Rules Available
Earlier this year, President Bush signed the “Jobs and
Growth” stimulus package into law, changing the equipment
depreciation rules for small businesses. The Internal
Revenue Service has issued guidelines on following these
rules, especially in regards to the first year “bonus”
depreciation allowance.
In general, the regulations provide the requirements that
must be met for depreciable property to qualify for the
additional first-year depreciation deduction. Furthermore,
the regulations instruct taxpayers on how to calculate the
additional first-year depreciation deduction and the amount
of depreciation otherwise allowable for the property.
The regulations, TD 9091, can be found
here.
Do any of these issues affect you? Visit the NASE Legislative
Action Center and “Tell
Your Micro-Business Story.” This will help the NASE
understand - on a personal level - how key legislative issues
are affecting your business and your bottom line.
For more information about any of the articles in
Washington Watch, contact Maureen Petron, NASE public
affairs manager, at (202) 466-2100 or
mpetron@nase.org.
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