Biz Owners: Should You Deduct Your Home Office?

by @BenitaTyler, TBS USA Accounting and Tax Advisory

If you use a portion of your home for business purposes, you may be able to take a home office deduction whether you are self-employed or an employee. Expenses that you may be able to deduct include the business portion of real estate taxes, mortgage interest, rent, utilities, insurance, depreciation, painting, and repairs.

You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively:

• as your principal place of business for any trade or business, or

  
  
• as a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business.

  
  

Generally, the amount you can deduct depends on the percentage of your home that you use for business. Your deduction will be limited if your gross income from your business is less than your total business expenses.

If you use a separate structure not attached to your home for an exclusive and regular part of your business, you can deduct expenses related to it.

The rules vary depending on whether you're self-employed, a qualified daycare provider, or storing business inventory or product samples. If you are an employee, you have additional requirements to meet. The regular and exclusive business use must be for the convenience of your employer. 

Want more advice on your accounting and tax issues? TBS USA is a national tax, accounting and business consultancy available to answer your questions!  Visit www.tbsusa.com today!

Do you deduct your home office annually? How has it benefited you?

@DorethiaConner

www.connercoaching.com

Follow @MoneyChatLive and Join us for #MoneyChat every Monday night on Twitter from 8-9p ET!

Cheating at Poker OK in Michigan...

Working on THE DEBT BOOK chapter on Gambling. I'm learning waaay more than I'll ever put in the book, but thought this was amusing.  Apparently, in Michigan, home poker, card games, etc. are cool, as long as the house doesn't take a cut. (But we all know they do). Now... the funny part is that it's also not illegal to cheat... that's right... scam away! 

MICHIGAN

"The Michigan Gaming Control and Revenue Act defines "gambling game" as any dice or card game played for money or some other form of value, "but does not include games played with cards in private homes or residences in which no person makes money for operating the game, except as a player." All laws, crimes, and punishments concerning gambling do not apply to home gambling, so long as no minors are present and so long as the House does not collect a rake. An interesting aspect of the law is that "cheating" applies only to true "gambling". Therefore, since home poker games are not classified as "gambling" then it is not illegal to cheat in a home poker game and therefore someone who cheated could not be punished by the law. I assume there are other laws to cover this situation because, after all, stealing is stealing. Home poker games are legal here as long as the gamblers are of legal age and there is no rake."

It may be legal, but um.. not the best idea... could get ugly if caught!

P.S.: What do you think - ever see anyone get CAUGHT cheating.. (at Poker)?

@DorethiaConner

www.connercoaching.com

Follow @MoneyChatLive on Twitter and Join us for #MoneyChat every Monday night on Twitter from 8-9p ET!

Biz Owners & The Graphic/Web Designer Blues....

So... you have a major campaign launching tomorrow that you are pretty excited about, one last look at your site and ERROR!!! Utter horror sets in and frantically you call, email, text your designer. No answer.  A couple hours later you get a call, email, text that they are busy and might get to you by the end of the day. MORE HORROR. 

It's time to update your business cards, press kit, e-blast - the works. Time for a fresh look. You decide to call a graphic designer who does great work and asked to design for you in past - they are elated you chose them. You meet, outline your needs, and bada-boom, bada-bing, they promise to get to work. THAT was four weeks ago. Each call, email, text is met with an apology and a promise to have your materials by this or that due date. NOT!  

Those fancy-dancy Facebook 'Welcome' tabs everyone has now are so    cool - you decide you want one too! You shop around, think you found a great 'guy' who does them, promises it will take no time at all. The work he's done in the past looks snazzy, so you sign up too! Turns out, maybe those weren't exactly tabs HE created and the one he does for you isn't anything you want others to see. #FAIL

We've also noticed that with some web designers it seems as if they want to do the big jobs, but not the minute details once the largest portion is complete. You know - moving a box, changing colors. Once the project is done you always need ongoing maintenance. And YES, even when this is in the written agreement, you may be made to feel as if you are a hassle to your designer instead of a valued customer.

Now, before everyone starts waving their fingers saying - ' you pay for what you get, these must have been low budget designers.' UH NO! My friends and I have this discussion all the time about our troubles with graphic/web designers who do great work, but are slow or have horrible customer service.  Oh, and some may show a great portfolio, but .. er.. your finished project is anything but great.

We haven't come up with a complete solution - other than to keep shopping around until you hit the jackpot. Some of us have and are pleased with our designers, others, well, we hear their stories when we meet up at the Biggby Coffee Shop! 

Do you have any tips? Have you had great success with your designer? Shout 'em out!! They deserve it! 

@DorethiaConner

www.connercoaching.com

Follow @MoneyChatLive and Join us for #MoneyChat every Monday night on Twitter from 8-9p ET!

$ Tip for Authors: Does Your Book Suck?

First off - hats off to anyone who decides to write a book and tackle all that goes with it. Whether you are self/independently published or traditionally published - I  APPLAUD YOU! I'm jumping into the fire myself and my head is spinning as I work on The Debt BOOK! (nope, not the real title, there isn't one yet lol)

My tip for today is to save the money for a good editor and cover design. I've always been an avid reader and sometimes others ask me to review their adult/youth financial or business related books. I’ve come across great book covers, horrible editing and vice versa. I’ve also seen where both cover and editing needed a complete revamp.  If I buy your book and can’t get past the first chapter because of poor spelling, format, grammar, etc. – I won’t finish reading it AND I will tell my world how badly done it was. Now multiply ME times the number of people in your audience. Word of mouth can hurt your book sales and speaking engagements – thus hurting your bottom line!  Now, we want to keep that bottom line happy! 

Don't rush your project -  take your time, make sure that you have thoroughly dotted the i's and crossed the t's so your labor of love can net the result you are looking for.

What about you? How has your experience been with editors for your book project? 

Your Coach, 

Dorethia

www.connercoaching.com

Getting a Tax Credit for Your Honey Do List!

You have to do the work anyway - might as well get paid for it! Well kinda - @BenitaTyler of TBS USA Accounting and Tax Advisory, offers some insight on tax credits for items on that long summer home improvement list! Check it out!

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Summer is a great time to tackle home improvements - and, happily, it's not too late to receive a tax credit when making your home more energy efficient. Although significantly reduced from 2010 levels, energy-efficiency tax credits are still available in 2011.

The home energy credit applies to energy-related improvements, such as adding insulation, energy-efficient exterior windows, and energy-efficient heating and air-conditioning systems to an existing home that is your primary residence. The tax credit is not available on rental properties or new construction.

The tax credit is 10% of the cost of the home improvement, up to a maximum of $500. There is a lifetime limit of $500, so if you took a $500 credit in 2010, you do not qualify in 2011. The tax credit expires December 31, 2011.

The credit on some items have been reduced below $500:

• Windows limited to $200; Energy Star qualification.
• Air conditioners, water heaters, and biomass stoves limited to $300.
• Furnace and boiler improvements limited to $150 and must meet certain standards.
• $50 credit for advanced main air circulating fans.

Further, the Residential Energy Efficient Property Credit is a nonrefundable energy tax credit that helps individual taxpayers pay for certain alternative-energy equipment, such as solar hot water heaters, geothermal heat pumps, and wind turbines. The maximum amounts for a credit equal 30% of the cost of qualified property, with no upper limit. This credit expires on December 31, 2016, and is available for new and existing homes, whether primary or second. Rentals do not qualify.

Want more advice on your accounting and tax issues? TBS USA is a national tax, accounting and business consultancy available to answer your questions!  Visit www.tbsusa.com today!

Are You Living to Give?

"You make a living by what you get; you make a life by what you give."

~ Winston Churchill ~

What have you given lately? A while back I posted on my Facebook page on the importance of giving to those in need. I'm not only talking about your annual giving to the Red Cross, United Way, your church or other organization. While these are all wonderful, charitable organizations that I support - I'm talking a little more grassroots. Stand outside your home - think about your neighbors on either side, down the block, across the street - what could they use help with? Who in your family is going through a rough time, facing an illness or job loss? Who do you know that is elderly and could use help paying for medicines, getting around, or has some long overdue housecleaning that's needed?

A lot of times we operate in our own little bubble - my four and no more, when all around us there are those whose day would be brighter with the smallest gesture on our part.

If you have the means, there are many ways you can help someone in your circle who has a need. I had a friend once who actually wrote it in her calendar to help at least one person each week. Now, your assistance doesn't have to be financial - labor is often worth just as much as your cash. 

Here are a few small ways to be a beacon of light....

• When you go grocery shopping each week, just add a few items to give away. This way you aren't trying to buy all at one time or...
• Buy a grocery gift card for someone
• Purchase a pack of diapers or low cost baby clothes for a single/teen mom
• Volunteer to do the yard work for an elderly person who doesn't have much help 
• Offer to run errands for an elderly or disabled person who may not get around as well
• Buy gas cards for people you know who could use a little help financially when you go to the pump
• Offer to help a child with tutoring in a subject they struggle with
• Know anyone who is in the hospital or home ill? Take time to visit and chat with them for more than 20 minutes. Take magazines and food they like.
• Help send a student to camp

One thing I've learned over the years is that often when you ask people if they need help they'll say no.  They don't want to impose and pride can keep people from admitting they need help. That's understandable, so like Nike says.. JUST DO IT! Most will be relieved and elated you thought of them. 

This is a short list of things we all can do to help others - what would you add? What have you done in the past? Most importantly... how happy was the person on the receiving end of your kindness?

Wishing you the best, 

-Dorethia

www.connercoaching.com

 

7 Money Books You Should Read ASAP!

As I was on my journey to better money management, I would write down my progress periodically. I am a planner, a list maker (when it was time for my youngest daughter to be born, I even put that on a list!). I would type up when I paid something off, how much more I had to go, and a timeline for payoff. Yep, I've made pretty good progress - you hope so huh, since I am the financial coach?  

Anyway, as I was reviewing my old notes, I thought about the books that changed my financial life and thought I'd share them with you. I've also added a few recent books that are definite must reads as well.

1. Total Money Makeover by Dave Ramsey
(This was my 'aha moment' book, and the reason I do what I do! Thanks Dave!)

2. Zero Debt by Lynette Khalfani - Cox  (A Must read!)




3. Girl, Make Your Money Grow by Glinda Bridgforth-Hodges and Gail Perry-Mason
(Easy to understand explanation on how to save and invest - men can read it too!)




4. The Millionaire Next Door by Thomas J. Stanley (A timeless classic)




5. Living In The Village: Build Your Financial Future, Strengthen Your Community by Ryan Mack (Excellent strategies & as the state of our communities is near and dear to my heart - this one hit home.)




6. Get Financially Naked by Manisha Thakor and Sharon Kedar
(Great book for couples - I recommend to my engaged & married clients)




7. Stop Acting Rich and Start Living Like A Real Millionaire! by Thomas J. Stanley 
(The kick butt title alone grabbed me and true to his style, Stanley brought it home in this one!)




Alright, there it is - these should keep you busy for a couple of months! Remember to spread the love, you know others who need help in their finances too. Buy them a book or at least share this post with them. Let's take someone else with us as we climb out of financial oblivion and into wealth!

What about you? What book changed your financial life?

Until next time!

-Dorethia
www.connercoaching.com

Linear Income - A Straight Line to Staying Broke!

I'm pleased to have as a guest blogger today Success Coach - Celest Turner. A dynamic individual, Celest believes in helping others pull multiple streams of income from the talents they have inside. Enjoy the article and be sure to visit Celest's website. 

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Over the years, I have met some amazingly talented people who were unemployed, under employed and some with enviable salaries. All of them had multiple talents and skills that they, at some point in their lives, packaged up daily and delivered to a job for a biweekly pay check (minus taxes of course).

For most people, a consistent pay check is good and fair trade for hours of work.  This form of payment is called linear income. The problem with linear or earned income is that your pay is always dependent on giving your time away. If you can't deliver the hours or if you are no longer needed then you no longer get paid.  

We are all worth more than trading hours of our lives for money. While linear income is a good baseline, there are other streams of income that are smarter and will give you more freedom. 

Passive Income

Passive income has two components: it is regular and requires very little of your time to maintain.  Examples are rent from properties,  interest from investments or earnings from Google Ads and other website advertising. 

Leveraged Income

Leveraged income is what your employers get every day.  They use the efforts of all their employees to make them money.  You can do the same thing by leveraging joint ventures, affiliate marketing and partnerships. 

Residual Income

Residual income happens when you do something once and get paid over and over again.  The most common example is a syndicated television show where the actors get paid repeatedly for reruns. 

How would your life change if you used your talents and skills to add passive, leveraged or residual income to your current linear pay check? 

Celest Turner is an expert who facilitates success and helps propel businesses and people to new heights. She has perfected strategies in her 15-year career that have developed leaders, enhanced careers, increased revenue for companies, and built brands. Learn more about Celest at  http://www.newsuccesscoach.com/