Todd Bailey explains the records to keep and tax deductions to consider in your Amare business. Also, advice about credit cards to simply your records. Powerpoint Slides. Downloadable

1. Todd Bailey JD Macc
Amare Global Wellness Partner
10-4-18
Taxes, Records & Your Amare
Global Business

2. Topics
 Two Tax Systems
 Home Business Tax Deductions
 Record Keeping
 Business Entities
Todd Bailey: Amare Taxes & Record Keeping2

3. Two Tax Systems
1. Employee (W-2)
2. Business (1099, Including Home-Based)
Must keep business and personal
separate
 Separate bank accounts
 Separate credit/debit card
 Possibly form a separate business entity
Todd Bailey: Amare Taxes & Record Keeping3

4. W-2 Employee Tax Deductions
 Mortgage Interest
 Taxes (Real Estate Tax/State Income Tax )
 IRA Contributions
 Gifts to Charities
Home Business Tax Deductions
 W-2 Employee Deductions
 +Direct Expenses
 +Indirect Expenses
 +More Retirement Plan Choices
 10% IRC section 199A Deduction!!
Todd Bailey: Amare Taxes & Record Keeping4

5. Todd Bailey: Amare Taxes & Record Keeping
Regular
Employment (W-2)
Self Employment
(1099)
Earned $1,000
-Taxes of 250
$1,000 Earned
-750 for iPad
Net After Tax $750
Buy iPad -750
$250 net before Tax
-62.50 Tax
Net Cash $0.00 $187.50 Net Cash
It’s not what you make, it’s what you
keep.
Personal v. Business Expense
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6. Receipts
Syste
m
Log
s
Receipt
s
 Must substantiate expenses
 Receipts
 Checks, Deposit Slips, Bank Statements
 Credit Card Statements
 Scan or other electronic copy is OK
 How long do you keep the Records?
 3 years after filing tax return
 2 years after payment of the tax
Whichever is later
Todd Bailey: Amare Taxes & Record Keeping6

7. Deductions
 Accounting fees
 Advertising
 Auto expenses
(actual or mileage)
 Banking fees
 Business association
membership dues
 Advertising
 Business cards
 Displays, Exhibits
 Auto Expense
 Actual (oil changes,
etc.), or
 Mileage
 2013 – 56.5 ¢
 2014 – 56¢
 No deduction for
Commuting
 Must keep a Log
Todd Bailey: Amare Taxes & Record Keeping
Deductions Must Be
Ordinary &
Necessary
(i.e., Reasonable)
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8. Deductions
 Computers and tech
supplies
 Consulting fees
 Continuing education
 Convention and
trade shows
 Costs of goods sold
 Entertainment for
customers—no longer
tax deductible as of 1-
1-18
 Consulting
 Coaching
 Mentoring
 Business Consultant
Todd Bailey: Amare Taxes & Record Keeping8

9. Deductions
 Equipment purchase
or rental (including
repairs)
 Family members'
wages
 Furniture or fixtures
 Gifts for customers
($25 deduction limit
for each)
 Health Insurance
 Family Members’
Wages
 Child can earn up to
Standard Deduction
w/o filing return
 2018  $12,000
 Only sole
proprietorship,
partnership and LLC
taxed as a
partnership
 Health Insurance
 Itemized deduction for
an Employee
 Tax deduction for Self
Todd Bailey: Amare Taxes & Record Keeping9

10. Deductions
 Home office
 Exclusive Use—
separate room or
clear division
 Principal Place of
Business
 Time spent
 Importance of the
activity (core v.
administrative)
 No other fixed location
for core activity
 Beware “Commuting”
2 Deduction Methods
 Percentage of Use
Method
 Determine % of home
used for Home Office
 Multiply % times indirect
expenses (electricity,
gas, repairs, insurance,
depreciation, etc.)
 Simplified IRS Square
Footage Method
 IRS Rate x Square
Footage
 $5/square foot for 2013
 Maximum 300 square
feet
Todd Bailey: Amare Taxes & Record Keeping10

11. Deductions
 Interest
 Internet
 Legal fees
 Meals (Business
meeting or travel)
 Moving
 Meals
 50% limit
 Meetings
 Travel
 Moving
 Must be for a new job
 50 miles further away
 If self-employed, you
must work at least 78
weeks in the 24
months after you
move
Todd Bailey: Amare Taxes & Record Keeping11

12. Deductions
 Newspapers and
magazines
 Office supplies and
expenses
 Parking and tolls
 Postage
 Publicity
 Prizes for contests
or drawings
 Newspapers and
magazines
 Prevention, Health,
Oils Illustrated
Todd Bailey: Amare Taxes & Record Keeping12

13. Deductions
 Retirement plans &
IRAs
 Safe
 Telephone/Cell phone
 Travel
 Website design
 IRAs
 $5,500/year ($6,500
for Dr. Chandler)
 Retirement Plans
 2013 – up to $51,000
 2014 – up to $52,000
 Travel
 Planes, Trains,
Automobiles
 Build your business
somewhere funTodd Bailey: Amare Taxes & Record Keeping13

14. Tracking
 Substantiate your
deductions
 How long do you keep
receipts, etc.?
 Longer of 3 years
after filing return or 2
years after paying tax
 How to Track
 Spreadsheet
 Quickbooks (heavy
duty)
 Taxbot ($9.99/mo.)
 Deductr ($19.95/mo.)
 Many more
Todd Bailey: Amare Taxes & Record Keeping14

15. Protection: Business Entities
Why? Choices
Todd Bailey: Amare Taxes & Record Keeping
 Liability protection
 Reduce Taxes
 Bigger deductions for
retirement plans
 Tax deduct more perks
 Sole Proprietorship
 Default; no protection;
no 199A deduction
unless W-2 wages paid
to employees
 Corporation
 Liability protection
 S corporation can save
taxes
 Limited Liability
Company
 Liability protection
 May save taxes like S
corporation15

16. Business Entities—Example Part
1
Facts Background
Todd Bailey: Amare Taxes & Record Keeping
 Employment taxes
are 7.65% + 7.65% =
15.3%
 Your Amare Global
business has a net
profit of $100,000
 Employment taxes
are $15,300
 15.3% x $100,000
=$15,300
 2 components of
business income:
1. “wages” and
2. “profits”
 Employment taxes
apply to “wages”
 Separate “wages”
from “profits”
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17. Business Entities—Example Part
2
Facts Planning
Todd Bailey: Amare Taxes & Record Keeping
 Employment taxes
are 7.65% + 7.65% =
15.3%
 Your Amare Global
business has a net
profit of $100,000
 Employment taxes
are $15,300
 15.3% x $100,000
=$15,300
 Form an S
Corporation
 Pay yourself a salary
of $48,000 (net
$52,000)
 Employment taxes:
15.3% x $48,000 =
$7,344
 Save employment
taxes of $7,956
 15.3% x $52,000 =
$7,956
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18. Business Entities--When?
When to Form Cost
Todd Bailey: Amare Taxes & Record Keeping
 Amare Global Income
> $45,000
 $1,000-$2,000
depending on your
attorney
 Some states work
better than others
 May require a
separate tax return
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19. Protection: Insurance
Todd Bailey: Amare Taxes & Record Keeping
 Auto
 What about rental cars?
 Premises (home, office)
 Slip & Fall, etc.
 Umbrella Coverage -- Relatively inexpensive
 Consider $1 million or more
 Life Insurance
 For those who depend on you . . . until your pipeline
is built.
 Buy and own it in the right way
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20. Check out my Sites
Todd Bailey: Amare Taxes & Record Keeping
 For Amare Info:
http://bit.ly/Todd_Anne_Amare_Info
 For a free sample of MOOD+:
ttp://btb1964.freeamaremood.com/
 For a free sample of ENERGY+:
http://btb1964.freeamareenergy.com/
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