Recording keeping for your Amare Global home business by Todd Bailey JD MAcc & Amare Wellness Partner. Which records to keep. What's deductible. And much more . . .

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

2. Topics
 TwoTax Systems
 Home BusinessTax Deductions
 Record Keeping
 Business Entities
Todd Bailey:AmareTaxes & 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:AmareTaxes & Record Keeping3

4. W-2 Employee Tax Deductions
 Mortgage Interest
 Taxes (Real EstateTax/State IncomeTax )
 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:AmareTaxes & Record Keeping4

5. Todd Bailey:AmareTaxes & 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
System
Logs
Receipts
 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
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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:AmareTaxes & 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
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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
Employed
Todd Bailey:AmareTaxes & 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
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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
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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
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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 fun
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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 toTrack
 Spreadsheet
 Quickbooks (heavy duty)
 Taxbot ($9.99/mo.)
 Deductr ($19.95/mo.)
 Many more
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15. Protection: Business Entities
Why? Choices
Todd Bailey:AmareTaxes & Record Keeping
 Liability protection
 ReduceTaxes
 Bigger deductions for
retirement plans
 Tax deduct more perks
 Sole Proprietorship
 Default; no protection; no
199A deduction unlessW-2
wages paid to employees
 Corporation
 Liability protection
 S corporation can save taxes
 Limited Liability
Company
 Liability protection
 May save taxes like S
corporation
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16. Business Entities—Example Part 1
Facts Background
Todd Bailey:AmareTaxes & 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:AmareTaxes & 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:AmareTaxes & 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:AmareTaxes & 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:AmareTaxes & 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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