More than 20 million people are self-employed and 70 percent of home businesses overpay on their taxes. This concise, step-by-step guide shows self-employed people in all professions exactly how to take advantage of every tax deduction allowable by law, while steering clear of the IRS.

CONTENTSPREFACEI KEEPING MORE OF YOUR HARD-EARNED MONEYThe #1 Tax ShelterCalculating Your Tax BracketConverting Everyday Living Expenses into Business DeductionsIncome-Shifting TechniquesOther Tax-Saving TechniquesReduce Income Taxes with a Sideline BusinessII MAKING SURE YOUR BUSINESS IS A BUSINESSConvert Your Hobby Expenses into a Business DeductionMaking Sure You're a Business Owner and Not an EmployeeIII TAKE EVERY DEDUCTION YOU'RE ENTITLED TOAudit Myths and Other Tales of HorrorChoosing the Right Tax Professional to Get the Most Out of This BookGuilty Until Proven InnocentAudit-Proofing Your Tax ReturnRecord RetentionIV CONVERTING EVERYDAY LIVING EXPENSES INTO BUSINESS DEDUCTIONSTax Savings from DeductionsSection A: If You're Entitled to the Home-Office Deduction, Take It!Section B: Deduct ALL Equipment Used in Your BusinessSection C: Getting the Most "TSPM" Out of Your CarSection D: Meals, Entertainment, and GiftsSection E: Deducting Business Trips and VacationsSection F: Converting Medical and Dental Expenses into Business DeductionsSection G: Clothing, Interest, Credit Cards, Raising Children, and Everything ElseV INCOME-SHIFTING TECHNIQUESIncome-Shifting Technique #1: HiringIncome-Shifting Technique #2: Gift OwnershipIncome-Shifting Technique #3: Lease Property from Family or FriendsIncome-Shifting Technique #4: Gift Property Instead of SellingVI RETIREMENT PLANS FOR THE SELF-EMPLOYEDIndividual Retirement Accounts (IRAs)Simplified Employee Pension (SEP) PlansThe SIMPLE PlanMedical Savings Account (MSA)Keogh and Company Qualified Plans401(k) Plans -- Deferred Compensation PlansVII CHOOSING THE FORM OF ENTITY THAT'S BEST FOR YOUThe Different EntitiesChoose Your Goal, Choose Your FormThe Choosing ProcessTax-Planning StrategiesAPPENDICESA. Tax Rate Schedule for 1997B. Sample Independent Contractor AgreementC. 1997 Per Diem Rates (by State)D. Sample Employment ContractE. Resource GuideINDEXABOUT THE AUTHOR