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.
If you cannot use Form 1040EZ, you may be able to use Form 1040A if: Form 1040A Links. Finally, you must use Form 1040 under certain circumstances, such as: The three forms U.S. citizens and resident aliens use for filing individual federal income tax returns are Form 1040EZ (PDF), Form 1040A (PDF) and Form 1040 (PDF).Review What is the simplest form to use to file my taxes? on IRS.gov to see which form you should use.he three forms U.S. citizens and resident aliens use for filing individual federal income tax returns are Form 1040EZ (PDF), Form 1040A (PDF) and Form 1040 (PDF). Review What is the simplest form to use to file my taxes? on IRS.gov to see which form you should use.