• Does the time and effort put into the activity indicate an intention to make a profit?
• Does the taxpayer depend on income from the activity?
• If there are losses, are they due to circumstances beyond the taxpayer’s control or did they occur in the start-up phase of the business?
• Has the taxpayer changed methods of operation to improve profitability?
• Does the taxpayer or his/her advisors have the knowledge needed to carry on the activity as a successful business?
• Has the taxpayer made a profit in similar activities in the past?
• Does the activity make a profit in some years?
• Can the taxpayer expect to make a profit in the future from the appreciation of assets used in the activity?

Useful Tax Tips

For businesses on the cash accounting system (most small businesses), expenses are usually deducted the year paid. However, if you charge any business expenses to your bank credit card (VISA, MasterCard, American Express or Discover) you can deduct those expenses the year incurred even though you pay them in the next year. Go through your December charges and add them to your December expenses.
2. Normally, the cost of your inventory (goods for sale, parts) cannot be written off until sold. But if you have any damaged inventory, inventory that is out of date or out of fashion, goods unsalable for any reason, you can write off this inventory for 2008.
3. Your business expenses are deductible even if you paid them from your non-business bank account, personal credit card or debit card, or cash. Take a few minutes and go through all of your expenses for the year. If the expenses were for your business, deduct them. (Does not apply to corporations).
4. Many domestic businesses that produce, create or contract for goods are eligible for a 6% "manufacturer's deduction." The term "manufacturer" is broad, and many non-manufacturing businesses are eligible. Some construction, engineering and architecture firms, software developers, and video producers are also eligible. This "bonus" deduction is in addition to the deductions already allowed for manufacturing and production expenses.
5. In addition to your deductible business expenses, you may qualify for special "Tax Credits" available to businesses. Tax credits are very specific and limited, but if you qualify, the credits reduce your taxes dollar for dollar. Tax credits can be a real tax pot-of-gold.
6. You can put some of your business profit into an IRA or a SEP-IRA retirement account, and not pay income taxes on the profit until you withdraw the money in a future year. You have until April 15, 2009 to set up and contribute to an IRA or a SEP-IRA for the 2008 tax year. You can figure your 2008 income and taxes, and then decide if you want to shelter some of it in a retirement plan.

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CPA CLearwater FL Blog

P&L statement

2) If you have not found an accountant yet you are on to the search.
Google, Yahoo, & Bing. Are all online search engines that will help assist you in your search. You should do searches for CPA's and do them by proximity to your location. Having a CPA that is close to your business is a huge asset so you can stop by and drop information off easily. You should look at 3 to 4 CPA's and sit in for a Consultation. After you get the ready to go to your initial consultations stack each accountants experience with your needs based on

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  A good leader has an exemplary character. It is of utmost importance that a leader is trustworthy to lead others. A leader needs to be trusted and be known to live their life with honestly and integrity. A good leader “walks the talk” and in doing so earns the right to have responsibility for others. True authority is born from respect for the good character and trustworthiness of the person who leads.

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• A good leader is committed to excellence. Second best does not lead to success. The good leader not only maintains high standards, but also is proactive in raising the bar in order to achieve excellence in all areas.