vii Depreciating Your Personal Property............................... 130 Depreciating Land Improvements.................................. 136 Depreciating Home Improvements................................. 138 Depreciating Your Home ........................................ 141 Keeping a Depreciation Log...................................... 143 Part III: Other Tax Issues Chapter Eight: Special Tax Topics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .147 The Child Care Tax Credit ....................................... 147 Dependent Care Plans........................................... 149 Hiring Employees and Independent Contractors ...................... 152 Selling Your Home............................................. 161 Paying Estimated Taxes ......................................... 164 Understanding Self-Employment Taxes and Business Profits............ 166 Setting Up Medical and Retirement Plans ........................... 167 Chapter Nine: Working with a Tax Professional . . . . . . . . . . . . . . . . . . . . . . .169 When to Get Help from a Tax Professional . . . . . . . . . . . . . . . . . . . . . . . . . . 169 Hiring a Tax Professional........................................ 170 Working with a Tax Professional.................................. 171 Dealing with Tax Professional Errors .............................. 172 Finding a Tax Professional....................................... 172 Chapter Ten: Dealing with the IRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173 Handling an IRS Audit .......................................... 173 Handling Disputes with the IRS................................... 175 If You Are Audited ............................................ 177 Amending Your Tax Return...................................... 177 A Final Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181 List of IRS Forms and Publications ................................ 181 Getting Tax Help on the Internet .................................. 183 Index of Deductible Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .185 Topic Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193 FCCRKG8-FourthPages.indd 7 3/10/10 9:20:59 AM