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.
This form is used for reporting your business income, sales tax, and use tax. Use this form if you do not qualify to use the tax returns below. Business & Occupation Activities. This form is customized for taxpayers who report under certain B&O tax classifications and do not collect retail sales tax. Taxpayers can also report use tax on this form. Retailing and Other Activities. This form is customized for taxpayers who collect retail sales tax and report under certain B&O tax classifications. Sales Tax Remittance. This form is customized for taxpayers who gross less than $28,000 and owe less than $2,000 retail sales tax.