CPA WITH BUSINESS TAX AND PERSONAL TAX 1.5
I can’t tell you how many people need that shift. Um, what I can say is if you have any question in that space or am I using the proper entity or do I even need an entity? I 100% trust Blake in this space. He is the guy that I go to and I send my clients to have that discussion of what entity is going to fit them properly for solid Trust Attorney Las Vegas.
All right, awesome. Um, I know each business is kind of different as far as you know, what they can do. Um, maybe talk a little bit about, let’s say it is the people who are sole owners of the business. Um, they do the consulting, they do whatever. What are some like key main things that they should be doing? Like no matter what, however much money they are bringing in, but things that they can do that every kind of solo business owner should be doing to minimize their tax liability.
I’m going to mention one thing and then dive into some expenses and things that we can write off. One critical thing. I tell people the best practices. When you have a business, it’s critical from the audit standpoint, and I’m always preparing to defend against an audit. That’s the worst-case scenario that uses Trust Attorney Las Vegas. You need to have two separate accounts, a business account, and your account. You need to keep them separate. Personal items are on a personal account. Business items in the business account. Don’t commingle personal items to the business account. So easy example, your house payment, and your groceries, you’re not going to write those off as a business expense. Very rare scenario and honestly people that are trying to fit that box probably don’t. There are other ways to get deductions that are better than taking that really risky step. Um, but make sure that you have a simple way of keeping your stuff separate.
I don’t care if it’s two different credit cards to them. Debit cards. When you’re out, you’re making sure you’re using the right card. Create a simple method to keep that clean. It’s the, it’s the biggest advantage in an audit. Now when you’re coming to, what can I deduct? What can I write off? When I first worked with people that will provide you with solid Trust Attorney Las Vegas services, I’m trying to tailor their expenses. I’m not trying to say, Hey, go buy a new truck so you can get the right offer. Hey, you can write off your cell phone. You know people know those. Um, I’m going to ask people what do you spend on normally, what are the things that you’re spending on normally, but that could be business deductions. No, we’re eligible to write off. Those are the things I want to pick up. Um, some things that’s easy to pick up. Clothes as an item that is very difficult to write off.
If you work in the medical field, you have scrubbed some type of particular clothing. You can use that. If you have specialized shoes or something, if you have to stand a lot in your job, you can write off those types of items. But clothing is a very restricted item. A lot of people, let’s say a real estate agent, they have to dress professionally. I want to write off these. You don’t get to deduct those. The code does not allow that. It has an alternative purpose. It’s thrown out. But you can write off the maintenance on them. You can write off the dry cleaning on them with solid Trust Attorney Las Vegas. So there are some regular expenses that I can pick up. Uh, meals are a really easy thing to pick up. Um, and for those that aren’t aware, it used to be meals and entertainment. You might be used to hearing that, but from 2018 forward, uh, you don’t get to deduct the entertainment as a business expense anymore.
I had a bunch of people wanting to write off some of these fees for getting Raider’s seats and tickets. Those things are not going to be deductible for the business. The meal part is if you’re out socializing network, um, if you’re going out, let’s say you’re at an event, maybe you go to a hockey game with great Trust Attorney Las Vegas, but you’re there with uh, maybe a bank contact that you have or maybe a potential client that you’re trying to pick up. You can’t write off the event, but any meals or drinks that you play while you’re there are deductible. So I like people to brainstorm in the space of what are these things I’m normally spending on. And a test I give people just takes one month of your bank account, your credit card and go through it and say, what in the hairs even remotely related to business.
Send me an email. I’ll tell you what is what isn’t. I’ll just go down the list. Yes, no, it’s two seconds of my time and you’re not going through 12 months’ worth of stuff. Nobody wants to do that. Just take one month to a simple exercise, but let’s find that that low lying fruit. What are the things that you’re regularly spending on top Trust Attorney? Um, technology is a really easy space to use for business. Uh, phones, cameras, iPods, laptops, uh, your internet fees at your house. Most things nowadays are done through the technology and you’ll be able to take a write off on those types of things without it being too aggressive, really easy space to work
on that point, I would say the easy test is, you know, would a fortune 500 company pay for this for an employee? I think that’s a good level test for you because if the business isn’t going to pay for that for an employee if they can’t deduct it off the company returns with the most amazing Trust Attorney Las Vegas. And so you just kind of think about, okay, would my employer, if I was working for somebody else, would they pay for that for me? And I think that’s a really easy way for you to know whether you can write it off.