A small business distinguishes between items purchased for the short term and long-term expenditures, both in accounting and in taxes. Capital expenditures are business improvements, upgrades or expansions. A capitalized expenditure is primarily a tax term, reflecting depreciation for loss of value over a period of years.
Use Form 1040-ES â You can calculate your quarterly estimated tax payment using Form 1040-ES (the same form used to pay estimated taxes), which includes a worksheet that helps you estimate how much you owe for the current year. Corporations should use Form 1120-W to calculate estimated taxes. Refer to Last Yearâs Return â If you have been in business for a while, you can refer to your previous year's federal tax return.
U.S. citizens and resident aliens can choose among three types of forms for filing their federal income tax: 1  Form 1040 (the standard tax form) 2  Form 1040A (contain a smaller set of lines for reporting income and deductions) 3  Form 1040EZ (shortest form and fastest filing time)