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.
Sole Proprietorship. The simplest type of small-business structure, a sole proprietorship, also allows for the easiest way to file income taxes. The choices are also simple, since all profits pass on to the owner. The only form necessary is a Schedule C attached to the owner's personal tax return, a standard Form 1040.ole Proprietorship. The simplest type of small-business structure, a sole proprietorship, also allows for the easiest way to file income taxes. The choices are also simple, since all profits pass on to the owner. The only form necessary is a Schedule C attached to the owner's personal tax return, a standard Form 1040.