WCG Bizcast

CRNA: Tax Deductions | WCG Inc. | Bizcast

media@watsoncpagroup.com (Jason Watson CPA, Megan Oeltjenbruns, Joseph Bassett) — Mon, 17 Oct 2022 03:19:54 +0000

Jason Watson, CPA, Joseph Bassett, EA, and Megan Oeltjenbruns, CPA, run through the common tax deductions that a CRNA can use as a 1099 contractor. What can be a business deduction and the rules that apply to getting that deduction. Related Blog Posts: https://wcginc.com/kb/home-office-deduction/ https://wcginc.com/kb/tax-free-rental-of-your-home/ https://wcginc.com/kb/automobiles-and-llcs-s-corps/ https://wcginc.com/business-services/s-corp-salary/ Visit WCG today at: https://wcginc.com/ --- Find us Online! ► Facebook: https://www.facebook.com/WCGIncCPA/ ► LinkedIn: https://www.linkedin.com/company/wcginc ► Twitter: https://twitter.com/wcginccpa ► Instagram: https://www.instagram.com/wcginccpa/

CRNA: State Issues | WCG Inc. | Bizcast

media@watsoncpagroup.com (Megan Oeltjenbruns, Jason Watson CPA, Joseph Bassett) — Mon, 17 Oct 2022 03:19:44 +0000

Jason Watson, CPA, Joseph Bassett, EA, and Megan Oeltjenbruns, CPA, continue their discussion on the CRNA industry. How doing business differs depending on the state you have your business registered in and where you do your business. The impact a state could have on your income taxes and payroll processing too. Visit WCG today at: https://wcginc.com/ --- Find us Online! ► Facebook: https://www.facebook.com/WCGIncCPA/ ► LinkedIn: https://www.linkedin.com/company/wcginc ► Twitter: https://twitter.com/wcginccpa ► Instagram: https://www.instagram.com/wcginccpa/

CRNA: W-2 and 1099 | WCG Inc. | Bizcast

media@watsoncpagroup.com (Jason Watson CPA, Joseph Bassett, Megan Oeltjenbruns) — Mon, 17 Oct 2022 03:19:26 +0000

Jason Watson, CPA, Joseph Bassett, EA, and Megan Oeltjenbruns, CPA, discuss who a CRNA is and their industry. They break down the differences between a CRNA being a 1099 contractor or a W-2 employee and which gives a CRNA more money and more deductions. Related Blog Post: https://wcginc.com/business-formation-services/s-corp-election/ Visit WCG today at: https://wcginc.com/ --- Find us Online! ► Facebook: https://www.facebook.com/WCGIncCPA/ ► LinkedIn: https://www.linkedin.com/company/wcginc ► Twitter: https://twitter.com/wcginccpa ► Instagram: https://www.instagram.com/wcginccpa/

CRNA: Business Entity Matters | WCG Inc. | Bizcast

media@watsoncpagroup.com (Jason Watson CPA, Megan Oeltjenbruns, Joseph Bassett) — Mon, 17 Oct 2022 03:19:13 +0000

Jason Watson, CPA, Joseph Bassett, EA, and Megan Oeltjenbruns, CPA, talk about the type of business entity a CRNA should be set up as and why some states are easier than others to set up your business. The benefits of the S-Election.Why you could be wearing two hats now and how the election factors into your income. Related Blog Post: https://wcginc.com/kb/basic-business-entities/ Visit WCG today at: https://wcginc.com/ --- Find us Online! ► Facebook: https://www.facebook.com/WCGIncCPA/ ► LinkedIn: https://www.linkedin.com/company/wcginc ► Twitter: https://twitter.com/wcginccpa ► Instagram: https://www.instagram.com/wcginccpa/

Our Ideal Client Relationships

media@watsoncpagroup.com (WCG Inc.) — Thu, 15 Jul 2021 20:14:57 +0000

Jason Watson, CPA, Jason Schneider, CPA, and Megan Oeltjenbruns, CPA, wrap up our series of bizcasts discussing WCG and what we have to offer those looking to join our team. They discuss the type of client engagements we are seeking as a firm. Visit WCG today at: https://wcginc.com/ --- Find us Online! ► Facebook: https://www.facebook.com/WCGIncCPA/ ► LinkedIn: https://www.linkedin.com/company/wcginc ► Twitter: https://twitter.com/wcginccpa ► Instagram: https://www.instagram.com/wcginccpa/

Culture at WCG

media@watsoncpagroup.com (WCG Inc.) — Thu, 15 Jul 2021 20:13:24 +0000

Jason Watson, CPA, Jason Schneider, CPA, and Megan Oeltjenbruns, CPA, discuss the culture at WCG for prospective employees looking for a new work family. Visit WCG today at: https://wcginc.com/ --- Find us Online! ► Facebook: https://www.facebook.com/WCGIncCPA/ ► LinkedIn: https://www.linkedin.com/company/wcginc ► Twitter: https://twitter.com/wcginccpa ► Instagram: https://www.instagram.com/wcginccpa/

Challenges at WCG

media@watsoncpagroup.com (Jason Watson, Megan Oeltjenbruns, Jason Schneider) — Thu, 15 Jul 2021 20:11:14 +0000

Jason Watson, CPA, Jason Schneider, CPA, and Megan Oeltjenbruns, CPA, discuss the challenges of our firm faces, internally and systemically, and why we are excited about them. Visit WCG today at: https://wcginc.com/ --- Find us Online! ► Facebook: https://www.facebook.com/WCGIncCPA/ ► LinkedIn: https://www.linkedin.com/company/wcginc ► Twitter: https://twitter.com/wcginccpa ► Instagram: https://www.instagram.com/wcginccpa/

How to be Successful at WCG

media@watsoncpagroup.com (Megan Oeltjenbruns, Jason Schneider, Jason Watson) — Thu, 15 Jul 2021 20:08:44 +0000

Jason Watson, CPA, Jason Schneider, CPA, and Megan Oeltjenbruns, CPA, discuss what it takes to be successful at WCG and the positions that we are seeking to fill. Visit WCG today at: https://wcginc.com/ --- Find us Online! ► Facebook: https://www.facebook.com/WCGIncCPA/ ► LinkedIn: https://www.linkedin.com/company/wcginc ► Twitter: https://twitter.com/wcginccpa ► Instagram: https://www.instagram.com/wcginccpa/

Life and Leadership at WCG

media@watsoncpagroup.com (Jason Schneider, Jason Watson, Megan Oeltjenbruns) — Thu, 15 Jul 2021 20:06:31 +0000

Jason Watson, CPA, Jason Schneider, CPA and Megan Oeltjenbruns, CPA, discuss life at WCG. The leadership WCG is looking for and how two of our newest leaders have adapted to the merging of two CPA firms in the last year. Visit WCG today at: https://wcginc.com/ --- Find us Online! ► Facebook: https://www.facebook.com/WCGIncCPA/ ► LinkedIn: https://www.linkedin.com/company/wcginc ► Twitter: https://twitter.com/wcginccpa ► Instagram: https://www.instagram.com/wcginccpa/

Bourbon and Business | Business Tax Deductions Part 2

Tue, 7 Jan 2020 16:51:57 +0000

00;00;14;09 [Jason]: Jason Watson with WCG Incorporated here in Colorado

Springs, we're a local tax and accounting firm. Joined by Rachael

Weber and Joseph Bassett, both tax professionals for us. We're

also hosted by Axe and the Oak here in Colorado Springs, they've

been gracious enough to open up early for us, part of our Bourbon

and Business

00;00;31;29 series, podcasts and videos. We just got done wrapping up a video

and podcast on some of the bigger deductions that we see, cars,

that's always a big one for most small

00;00;42;29 business owners, meals and travel. We're going to talk this time or,

this time around about home office and then all the other like

goofier ones, if you will.

00;00;54;25 So, you know, tell me the rules, Rachael, on the home office

deduction.

00;01;00;04 [Rachael]: It's got to be used regularly and exclusively

00;01;03;27 [Jason]: Okay.

00;01;04;26 [Rachael]: In your home.

00;01;05;13 [Jason]: Okay, regular and exclusive and have a business.

00;01;09;01 [Rachael]: A Business purpose.

00;01;09;14 [Jason]: That's probably true for every deduction on a plan, right?

00;01;12;18 [Rachael]: Yeah.

00;01;12;27 [Jason]: For a business deduction to be a legitimate business

deduction it has to have a business purpose. So, use regularly and

exclusively. So, can you break those words down for me? What's

"regular" mean?

00;01;23;15 [Rachael]: "Regular" means you would be checking your emails,

invoicing your customers, doing administrative work. Okay. Meeting

with clients, holding your inventory. It could mean a whole host of

00;01;37;27 [Jason]: Right.

00;01;38;03 [Rachael]: of things. You're just doing that on a regular basis, not

once a month

00;01;42;26 [Jason]: Right.

00;01;43;14 [Rachael]: but on a regular basis.

00;01;44;21 [Jason]: Yeah. And one of the words that the IRS will also use too is

"continuous", right? This is regular and continuous, it's, it's, got a

life, you know, it's got a cycle.

00;01;53;28 [Jason]: So yeah, absolutely, regular is a big deal. We have folks

that have a rental, one rental, you know, they have a W-2 job, they

have all those things and they're trying to say, I have a home office

to manage my rental. It's just never going to happen. Now, if we

have 10 rentals, 6 rentals, that's all you do is manage your

00;02;11;02 rentals. We have some people that have 3 or 4 VRBOs or Airbnb,

short term rentals and that is all they do.

00;02;18;24 [Rachael]: Time consuming.

00;02;18;29 [Jason]: Their working that stuff 100% so yeah, so that's regular.

How about exclusive Joe? Joseph? What's exclusive?

00;02;24;27 [Joseph]: So, let's say you have an extra room in the bedroom

that's you want to use for your home office and it also can't be your

theater room. So you know, that's gotta be exclusively used for

business.

00;02;33;20 [Jason]: What if you're a videographer and the theater is your

business? I'm teasing you.

00;02;38;03 [Joseph]: Well, you have an argument there. Or, or

00;02;38;24 [Jason]: No, but you can't mix the use, yeah

00;02;41;07 [Joseph]: Right, unless you run a daycare out of your

00;02;42;13 [Jason]: Right.

00;02;42;21 [Joseph]: House as well.

00;02;43;05 [Jason]: Yeah, and daycare has its own special rules and this is not

the podcast for that because

00;02;47;27 [Joseph]: Right.

00;02;48;01 [Jason]: I don't know those rules by a memory. I look them up once

in awhile when I have to, but that's it. But right, those are some of

the shared use stuff can be daycare. Other than that, it's regular

and exclusive with a business purpose. So, tell me some of the

bank, the benefits of having a home office

00;03;05;25 deduction or home office reimbursement.

00;03;08;10 [Rachael]: Reimbursement? Is that part of your mortgage interest?

00;03;13;15 [Jason]: Okay.

00;03;13;23 [Rachael]: Your real estate taxes,

00;03;15;05 [Jason]: Okay.

00;03;15;19 [Rachael]: Utilities.

00;03;16;21 [Jason]: Okay.

00;03;17;09 [Rachael]: Could become a small deduction.

00;03;19;21 [Jason]: Okay.

00;03;21;11 [Rachael]: For you, a business deduction.

00;03;21;18 [Jason]: Yeah absolutely. And what are some of those expenses

that aren't otherwise available to be deducted? And mortgage

insurance, we say yes, right?

00;03;27;29 [Rachael]: Mm-hmm

00;03;28;14 [Jason]: Schedule A property taxes, we say yes, but how about the

other ones?

00;03;31;04 [Rachael]: Utilities, insurance

00;03;33;19 [Jason]: HOA dues.

00;03;34;21 [Rachael]: Yeah. Mm-hmm.

00;03;35;24 [Joseph]: Repairs. Okay, so suddenly those become deductible and

in a world where otherwise it wouldn't be.

00;03;40;11 [Rachael]: Right.

00;03;40;21 [Joseph]: Yeah.

00;03;41;01 [Jason]: Okay, and how do we calculate that home office

deduction?

00;03;45;17 [Rachael]: Well we do it by square footage.

00;03;48;07 [Jason]: Yeah, that is probably the most common, is square

footage. You could do it at room by room, the IRS allow that, they

actually mentioned that in Publication, what? 587, or whatever it is.

But I've never seen anybody do room by room.

00;04;00;15 [Rachael]: No.

00;04;00;20 [Jason]: It's always, usually, I shouldn't say always, but usually it's

square footage, yeah. So what's the basic calculation? It's the

home office space divided by

00;04;09;24 [Joseph]: Total space of the house.

00;04;10;26 [Jason]: Yeah, the total space of the house. What if you use your

garage, then what do you do?

00;04;15;08 [Joseph]: You include it.

00;04;16;12 [Jason]: Include it where?

00;04;17;08 [Joseph]: In both.

00;04;18;01 [Jason]: In both numerator and denominator? Yeah, exactly. So if

we're going to take the benefit of the garage and it's not otherwise

in the denominator then we have to add it in.

00;04;29;26 [Rachael]: Mm-hmm.

00;04;30;02 [Jason]: Yeah, exactly. So, that's home office. What's this 50 mile

rule thing? Who wants to talk about that?

00;04;38;14 [Joseph]: Right, so the 50 mile rule's, you know, kind of a safe

harbor if you will, that if you know, your home office is within 50

miles of your tax home then you can, you know, deduct expenses

associated with

00;04;50;29 commuting from the tax home to the home office.

00;04;54;17 [Jason]: Yeah, exactly. It's, they want, "they" being the IRS and the

tax court, they want your home office to be, there's no written rule

on this, it's more of a contrived rule.

00;05;06;23 But your home office needs to be within 50 miles of your tax home.

Your tax home is where you earn your revenue. So, the great

example, in one of the tax court cases, is a surgeon had a home in

Pennsylvania.

00;05;23;05 He drove to New York, I believe, and it was 130 miles away. He was

attempting to deduct all those commuting expenses and because

he was like, well, I got a home office. So then my commute is from

my bedroom to the basement. And then when I hop in the car, it's

all business miles, and of course the

00;05;43;06 IRS and tax court said "No." They said it's too far from your tax

home, basically. So they dis, disallowed all those expenses as

deductible expenses and

00;05;54;27 consider them commuting expenses, which is normally a personal

expense.

00;05;59;03 [Rachael]: Mm-hmm.

00;05;59;12 [Jason]: Non deductible. So, that's this 50 mile rule. What, you

know, talk to me about the audit rate risk for home offices and

00;06;09;25 [Rachael]: [Inaudible]

00;06;10;00 [Jason]: and, you've, and you've been doing taxes for a little bit of

time.

00;06;14;07 [Rachael]: Just a little while.

00;06;14;13 [Jason]: So tell me a little bit about the history.

00;06;16;12 [Rachael]: It's kind of high. Yeah and it's, it's almost like they can

walk in and assume you're doing something wrong because they're,

they're not easy rules. And you know, maybe the square footage

isn't complete or they can say, Hey, what's with the day bed and

your home office?

00;06;31;02 [Jason]: Right.

00;06;31;13 [Rachael]: Or, and it's not just the deductions that you're getting,

your utilities, your small amount of additional square footage, but

it's that commuting miles

00;06;42;07 [Jason]: Right.

00;06;42;15 [Rachael]: That are, it's going to be pricey

00;06;43;26 [Jason]: Yeah.

00;06;44;04 [Rachael]: If its not done right.

00;06;45;07 [Jason]: Yeah, absolutely. So, home offices, 20 years ago were not

very common, so it was a high audit rate risk.

00;06;53;19 [Rachael]: Mm-hmm.

00;06;54;11 [Jason]: Today telecommuters and all that stuff is a lot higher. But

now we're back to not being seen very often because if you're a

W-2 individual working out of your home office for a company out of

California,

00;07;07;05 you would have to deduct that on Form 2106.

00;07;10;19 [Rachael]: Mm-hmm.

00;07;11;04 [Jason]: And those expenses, those deductions are no longer

allowed. So, home office is almost been shrunk down to just for

business owners.

00;07;18;02 [Rachael]: Yeah.

00;07;18;29 [Jason]: So, how are we going to do that? Joseph, talk to, talk to us

about how we're going to do the home office from an S Corp

perspective.

00;07;28;20 [Joseph]: So, we'll use an accountable plan for the home office for

the S Corp and one of the reasons why we do that, so you know S

Corp's are cash basis, you know, and

00;07;38;07 [Jason]: Typically.

00;07;38;23 [Joseph]: Typically, typically.

00;07;39;14 [Jason]: Yes, small businesses enjoy using cash as their method of

00;07;43;18 [Joseph]: Right. Accounting, it's simple. Depending on their gross

receipts.

00;07;45;18 [Jason]: Yeah.

00;07;45;27 [Joseph]: And we just, we have you record it, you know, for like, like

Rachael said, your interest, taxes, insurance, and then you get

reimbursed by the S Corp for your business use percentage of

00;07;58;00 [Jason]: Okay.

00;07;58;06 [Joseph]: Business expenses.

00;07;59;18 [Jason]: So, just to back up for a viewers and listeners, an

accountable plan is the method used to reimburse people,

employees for business use of their personal assets.

00;08;13;03 [Jason]: Car, cell phone, home, are probably the biggest ones,

right?

00;08;16;05 [Joseph]: Mm-hmm.

00;08;16;19 [Jason]: So, and we forgot to put cell phone down on our big list of

deductions, but we can talk about that in a second. So, the benefit

to that is we're getting reimbursed by our business. That expense is

kind of tucked away on the S Corp tax return, using

00;08;35;29 an S Corp in your

00;08;36;29 [Joseph]: Mm-hmm.

00;08;37;28 [Jason]: example as occupancy expense. Not that you can't defend

it, not that we're doing anything wrong, but it certainly is not as high

of an audit rate as filing Form 8829.

00;08;49;29 [Rachael]: Mm-hmm.

00;08;50;06 [Jason]: Which is clearly the Office In Home worksheet.

00;08;53;12 [Joseph]: Right.

00;08;53;20 [Jason]: That gets tucked on or tacked onto your Schedule C, if you

were to have a business only on your 1040. So, that just shrinks

dramatically, the audit rate risk, from home office perspective.

00;09;07;06 [Joseph]: And too, S Corp's already face a lower audit rate

themselves.

00;09;10;14 [Jason]: Yes, 0.4% given I think 2017 data

00;09;14;28 [Joseph]: Mm-hmm, 2017, yeah.

00;09;15;02 [Jason]: Is the latest that we have now. So the IRS takes forever to

compile

00;09;19;03 [Joseph]: Yeah.

00;09;19;11 [Jason]: This stuff. I mean, I guess it makes a little bit of sense

because audits take time

00;09;23;07 [Rachael]: Mm-hmm.

00;09;23;18 [Jason]: to generate and to do. But I still like to think we can live in

a real time world. You know what I mean? Like we should know like

right now how many audits are happening. So, alright, let's talk

about commuting expenses. You know, you get up in the morning,

you drive to WCG Inc, you know, is

00;09;45;22 that an expense you can deduct?

00;09;47;09 [Rachael]: No, it's not.

00;09;48;01 [Jason]: Okay. Are you bummed out about that?

00;09;49;20 [Rachael]: Yes, I am.

00;09;50;08 [Jason]: Yeah, okay, we should write our Senators and our

Congress people. So, okay, so commute expenses? No. Even if

you travel far, let's say you moved to Denver and you drove every

day down in the Colorado Springs, it doesn't matter, right?

00;10;03;18 [Rachael]: Still personal, yeah.

00;10;03;27 [Jason]: Right, so there's no like, Hey, we recognize that you're

traveling really far, we'll give you that deduction. There's nothing

like that. So, commuting expenses, parking, tolls, all that associated

with going to

00;10;16;18 your tax home if you will, are not going to be deductible. So, great,

Country Club Dues, Rachel?

00;10;23;14 [Rachael]: No, can't do it.

00;10;24;15 [Jason]: No! Wow! Just hammered, boom.

00;10;28;06 [Rachael]: Sad, yeah.

00;10;29;14 [Jason]: Talk to me a little more about that. So we have someone

who has a membership somewhere, but they do entertain, shouldn't

say that

00;10;35;07 [Rachael]: Nope. Yeah.

00;10;35;11 [Joseph]: Yeah, discuss business.

00;10;36;08 [Jason]: They do discuss business at their country club.

00;10;40;17 [Rachael]: Mm-hmm.

00;10;40;20 [Jason]: How does that work?

00;10;41;29 [Rachael]: Those expenses for the country club dues are going to

be personal.

00;10;46;19 [Jason]: Right.

00;10;46;25 [Rachael]: It's great that they're generating business

00;10;48;29 [Jason]: Yes.

00;10;49;07 [Rachael]: At the country club

00;10;50;14 [Jason]: Okay.

00;10;50;20 [Rachael]: but the dues are not deductible.

00;10;52;01 [Jason]: All right, so this same member, buys a meal. The business

purpose is clear. They

00;10;59;20 [Rachael]: Yup.

00;10;59;23 [Jason]: Were there to discuss business and now this individual is

buying a meal that's going to get tacked on top of his or her dues.

How's that work?

00;11;07;16 [Rachael]: That meal portion is going to be 50%

00;11;10;14 [Jason]: Okay. Deductible as a business meal. Just, just like we've

always done.

00;11;13;06 [Rachael]: Mm-hmm.

00;11;13;09 [Jason]: With meals. Okay, great. Talk to me a little about

education. Can you run education expenses through your

business?

00;11;20;21 [Joseph]: It depends.

00;11;21;20 [Jason]: It depends, ah look just the classic accountant.

00;11;24;28 [Rachael]: Yeah, maybe.

00;11;26;00 [Jason]: Yeah.

00;11;26;14 [Joseph]: If those education expenses are to improve your current

field, then possibly. If they're to do something completely different,

you know so if I was going to go to school to become a doctor now,

which probably won't happen.

00;11;37;13 [Jason]: Yeah.

00;11;37;23 [Joseph]: But, those won't be deductible.

00;11;40;03 [Jason]: Right, so the rule is it has to improve your current work

skills. And you can even do, deducted a degree or even like, you

know, college courses, even if it leads to a degree, provided it's

improving your current

00;11;57;20 work skills. So, you're absolutely correct, the other half of that is if

you need it for certifications, like your continuing educations and all

that stuff. So, people who are CPAs have to go do all these, you

know, nauseating

00;12;10;15 [Rachael]: [All laugh]

00;12;11;02 [Jason]: Continuing Ed credits, you know, I'm sure we learned a lot

too, but you know, anyway, so, so that's education. How about your

children? Can you hire your children and consider them employees

and have the company

00;12;27;10 pay for the education? Who wants to take that one?

00;12;31;01 [Joseph]: I would say yes.

00;12;32;07 [Jason]: I'd say no. [Laughs]

00;12;34;09 [Joseph]: Like, the client advocacy in me would say Yes.

00;12;38;13 [Jason]: Yeah.

00;12;38;20 [Joseph]: Because of the, the relation though it will be disallowed.

00;12;41;15 [Jason]: Right? Yeah, I was giving you a hard time. So section 127

says if your child is 20 years or younger, they have attribution to

you as Mom and Dad being an owner of the company.

00;12;54;21 If you own 5% or more of the company, you can't deduct that

education.

00;13;00;01 [Jason]: But if your child legitimately works, and is 21 or older, so

we're talking junior or senior

00;13;08;24 [Rachael]: In college.

00;13;08;29 [Jason]: If you're on a six year plan, you're a sophomore, right?

Then the company can pay up to 5,250 a year, I think that's 2019

limit. So, that might get index every year, like everything else. So,

anyway that's education. How about client gifts? How do you

handle that?

00;13;23;16 [Rachael]: Oh, they're $25 cap.

00;13;27;08 [Jason]: Ahh $25?

00;13;27;14 [Rachael]: I know, its really, yep. Mm-hmm.

00;13;28;29 [Joseph]: Well they give you the $4 for gift wrapping, so

00;13;31;16 [Jason]: And they give you $4 per pen or something.

00;13;33;09 [Joseph]: Per pen, yeah.

00;13;33;11 [Rachael]: That's advertising, yes.

00;13;37;02 [Jason]: So, talk to me more about the $25 rule. Is that like all gifts

or, or is it just for gifts to specific people?

00;13;48;14 [Rachael]: It's gifts to a limited clientele. If you were handing gifts

out to the general public and it was a lower cost, then that would be

considered advertising.

00;14;00;07 [Jason]: Okay.

00;14;00;14 [Rachael]: And I think they give $4 for each advertising gift.

00;14;04;21 [Jason]: Yeah.

00;14;04;27 [Rachael]: Which I'm not quite sure what, you know, a pen or a

calendar or something like that.

00;14;08;26 [Jason]: Yeah, I don't know how much stuff like that costs either,

yeah.

00;14;12;12 [Rachael]: But your $75 wine basket is going to be a $25 business

gift.

00;14;17;29 [Jason]: Yeah, and as I've seen it, read it maybe in Journal of

Accountancy, other things like that, but that's an individual limit. So

if you don't donate, or if you don't provide that gift to an individual, if

you just do it to the business

00;14;33;01 [Rachael]: Mm-hmm.

00;14;33;10 [Jason]: There might be different rules

00;14;34;03 [Rachael]: Yes.

00;14;34;13 [Jason]: allowing you to take more deduction. So if you say, Dear

Bob, thanks for all the business

00;14;39;27 [Rachael]: versus staff at.

00;14;41;03 [Jason]: Yeah, exactly.

00;14;42;19 [Rachael]: Yeah.

00;14;43;06 [Jason]: yeah, exactly. So, and you can see why, you know, the

IRS is always worried about transfer of wealth without taxation.

00;14;50;02 [Rachael]: Mm-hmm.

00;14;50;12 [Jason]: Right? So if you, if you come in there with a bunch of client

gifts for one person it might look like a transfer of wealth. So, how

about professional attire? I am rocking the WCG.

00;15;00;18 [Joseph]: That's true, very nice.

00;15;00;29 [Jason]: On my shirt here. But tell me about professional attire.

People will constantly ask you

00;15;07;09 [Rachael]: Yep.

00;15;07;28 [Jason]: I have to look good in my business suit, I have to have my

nails and hair done, I have to rock, I have to rock this image.

00;15;15;25 [Rachael]: And they're all personal.

00;15;17;27 [Jason]: Yes, even though they're dead sexy, right? Even though

they're very good looking.

00;15;21;21 [Rachael]: And necessary

00;15;22;01 [Jason]: Yes.

00;15;22;14 [Rachael]: Absolutely necessary. Yeah. So there's a business

purpose behind it, but no tax deduction.

00;15;26;09 [Jason]: Right. So what's the rule?

00;15;28;07 [Joseph]: If it's not suitable for everyday wear

00;15;30;00 [Jason]: Yes.

00;15;30;11 [Joseph]: You can deduct it.

00;15;30;20 [Jason]: So, if it's, yeah, so if you can, if it's suitable for everyday

wear, easily convertible into everyday wear, then it's not deductible.

00;15;38;08 [Rachael]: Mm-hmm.

00;15;38;25 [Jason]: Right? Business suits are, you know, clearly something

you can convert to everyday use. We do have some, TV

personalities.

00;15;47;10 [Joseph]: Yes.

00;15;47;15 [Jason]: We do have some models, you know, and we can, we can

identify some of that attire as costumes, something that they

wouldn't, you know, be caught dead in. And that's true for some of

these models, for sure.

00;16;01;26 They wear stuff and they're like, I'm never wearing that in public. It

just, it looks good on a cover of a magazine, but that's about it.

00;16;08;15 [Jason]: Those are costumes, they're not suitable for everyday use.

Those are something that we can deduct. TV personalities, they'll

buy, you know, a thousand jackets and they'll give them away and

so those become marketing toys

00;16;20;19 [Rachael]: Yeah.

00;16;20;25 [Jason]: Or ploys or whatever, so absolutely. Let's talk about, per

diem and I'll just kind of talk about this real quick. Per diems a funny

thing. If you own 10% or more of a corporation and, and also there

might be some

00;16;38;21 attribution there, where if your brother or your sister or your Mom or

00;16;42;16 [Joseph]: Spouse.

00;16;43;12 [Jason]: Whatever, then you are assumed to have the same,

greater than 10%. If you are in that boat, you cannot take a per

diem reimbursement. So the scenario would be like this, I'm 100%

owner of a corporation. I pay myself $71 a day for every day that

I'm in San Francisco, because

00;17;02;15 that's the per diem rate. Let's say using 2018 numbers, I haven't

seen them, I haven't looked at per diem in a while cause we don't,

we don't see 2106 expenses anymore. But, that would not be

allowed. WCG Inc says, Rachel, we need you to go to, let's say

Cortez, we really

00;17;18;23 didn't like you very much. I'm teasing, Cortez is lovely. But, and we

say, Hey, we're going to give you $71 per per day that you're

00;17;27;08 there for meals, that would be acceptable.

00;17;30;11 [Rachael]: Mm-hmm.

00;17;30;13 [Jason]: Now that will not be revenue to you. You maybe only spend

$20, you know, whatever. You still get to take that $71 as tax free

income.

00;17;40;24 [Jason]: So, because you don't own 10% or more of WCG Inc.

That'll change, you know, you'll own, own it all and

00;17;49;07 [Rachael]: Eighty-five percent like you.

00;17;50;09 [Jason]: Joseph, I'll be working for you one day, it'll be awesome.

So, but that's per diem, per diem is a little tricky. There is the, the

meals and incidentals component. There is the lodging component.

The meals and incidentals component, as far as I know and read it,

00;18;06;24 available to Schedule C, Sole Prop, single member LLC types. The

minute you're a corporation or you act with a corporation through an

S Corp election that gets tossed out the window.

00;18;18;06 Lodging, regardless, is always going to be actual expenses. You

don't get the high, low seasonal rates and all that stuff that you see

in those per diem tables as a business owner. So, we ran through

home office, all kinds of good stuff there. We ran through all kinds

of other deductions that we get entertained with,

00;18;38;10 quite literally, cause some people are pretty clever, right?

00;18;41;22 [Rachael]: Mm-hmm.

00;18;41;29 [Jason]: With, with their deductions. The bottom line is, people ask

me all the time and they ask all of us all the time, how do I save on

taxes, right? And the first thing I say is, look, your job is to build

wealth, not save taxes.

00;18;56;12 We can save taxes along the way, that's great. But your job in life is

to build wealth. Now, if you still want to save taxes the trick is to

look at what cash you're already comfortable with leaving your

body.

00;19;10;24 [Jason]: So go through your checkbook and try to figure out if there

was one thing that you missed or maybe this expense really did

have a business connection to it and I forgot that it did, or to dig

deep. So, it's to look at the money that you're already willing to

spend and try

00;19;28;06 to find a business connection.

00;19;29;23 [Rachael]: Mm-hmm.

00;19;30;15 [Jason]: Now, I say find a business connection, like discover a

business connection

00;19;35;18 [Rachael]: Not create one.

00;19;35;27 [Jason]: Not fabricate a business connection. So anyway, those,

those are some of the other business deductions that we see a lot

of: commuting expenses, country club dues, education, client

00;19;47;20 gifts, professional attire, per diem, all that good stuff. We talked

about home office in this segment as well. We didn't talk about cell

phones. You know, cell phones, you know, folks will try to deduct

100%, right?

00;20;02;16 [Joseph]: Mm-hmm.

00;20;02;21 [Jason]: "I use it for my business," oh, I know you use it for your

business, I see that. But the minute you get a text saying, Hey

honey, you know, you're out of beer you should probably pick some

more up on the way home; and milk and eggs are low too. Now

your cell phone's no longer 100%.

00;20;17;04 [Rachael]: Mm-hmm.

00;20;18;17 [Jason]: So, you know our firm-wide soft ceiling is around 80%, if

you're a realtor, you're probably on the phone all the time. People

have kicked landlines to the curb but still your phone is going to

have a high personal use and I, I believe, we believe as a firm, 20%

00;20;37;00 about the minimum there, meaning 80% is for business.

00;20;40;26 [Jason]: Maybe you're a dentist, right? And you use your cell phone

occasionally, you do have an office phone and all those other

things, so maybe that's like 30% business use and 70% for

personal. So, commonly we see cell phones being paid for by the

business and they

00;20;58;19 truly are a mixed-use asset, so a mixed-use asset should be

00;21;03;06 [Joseph]: Paid by you personally

00;21;04;10 [Jason]: Exactly.

00;21;05;00 [Joseph]: And reimbursed to you on an accountable plan.

00;21;06;04 [Jason]: Yup. So, assets that you own personally should be paid for

personally. If there's a business connection or use of that asset

then get reimbursed. No different than you working for Google and

Google says, Hey, you know, drive down to the store, pick up some,

you know, some pencils and we'll

00;21;21;15 reimburse you. Well, you bring in a receipt and you're bringing in

your mileage log, and maybe you have to use your cell phone and

all that stuff, and they would cut you a check for the business use of

your personal stuff. So, anyway those are some of the common tax

deductions that we see here at WCG.

00;21;36;06 My name is Jason Watson with WCG. I'm alongside Rachel Weber

and Joseph Bassett. We're at the Axe and the Oak and this is a part

of our Bourbon and Business series of podcasts and videos and we

thank you for joining us and we'll

00;21;51;00 talk to you real soon.

Bourbon and Business | Business Tax Deductions Part 1

Tue, 7 Jan 2020 16:51:40 +0000

In this episode of our Bourbon and Business series, Jason Watson, CPA, sits down with Rachael Weber and Joseph Bassett of WCG Inc (formerly Watson CPA Group) to chat about our favorite part of tax season - tax deductions! The three most popular being car, meals, and travel deductions for both personal and business use. Stay tuned for part 2 of Business Tax Deductions, where we delve into the "odds and ends" deductions like your home office and country club dues!

This material is based on content from our website and our book, Taxpayer’s Comprehensive Guide to LLCs and S Corps.

https://wcginc.com/kb/operating-agree...
https://wcginc.com/book

Thank you!

Warm Regards,

WCG Inc. (formerly Watson CPA Group)
2393 Flying Horse Club Drive
Colorado Springs, CO 80921

719-387-9800 phone
719-345-2100 text message
855-345-9700 fax

https://wcginc.com/

Facebook - https://wcginc.com/facebook
LinkedIn- https://wcginc.com/linkedin
Twitter - https://wcginc.com/twitter
YouTube - https://wcginc.com/youtube

Special Thanks to Axe and the Oak Distillery for hosting our Bourbon and Business series!

Bourbon and Business | Business Financial Planning Part 2

Mon, 30 Dec 2019 12:00:02 +0000

In this second segment on Business Financial Planning, Jason Watson, CPA, sits down with Bud Rainsberger of RWA Partners in Colorado Springs to continue their discussion about when, why, and how to sell your small business. Bud explains the importance of understanding your motivation for selling, and, he touches on the emotionality of the decision and how it can impact your personal and professional life going forward. Special thanks go to Axe and the Oak Distillery for graciously hosting our Bourbon and Business podcast series! This material is based on content from our website and our book, Taxpayer’s Comprehensive Guide to LLCs and S Corps.

This material is based on content from our website and our book, Taxpayer’s Comprehensive Guide to LLCs and S Corps.

https://wcginc.com/kb/operating-agree...

https://wcginc.com/book

Thank you!

Warm Regards,

WCG Inc. (formerly Watson CPA Group)
2393 Flying Horse Club Drive
Colorado Springs, CO 80921

719-387-9800 phone
719-345-2100 text message
855-345-9700 fax

https://wcginc.com/

Facebook - https://wcginc.com/facebook
LinkedIn- https://wcginc.com/linkedin
Twitter - https://wcginc.com/twitter
YouTube - https://wcginc.com/youtube

Bourbon and Business | Business Financial Planning Part 1

Mon, 23 Dec 2019 12:00:06 +0000

In this first segment about Business Financial Planning, Jason Watson, CPA, sits down with Bud Rainsberger of RWA Partners in Colorado Springs to discuss the importance of having a well-defined plan for your business investments. Topics covered include; when to sell or not sell your business, how much cash are you taking out of the business, and how personal interests can compete with business interests. Special thanks go to Axe and the Oak Distillery for graciously hosting our Bourbon and Business podcast series!

This material is based on content from our website and our book, Taxpayer’s Comprehensive Guide to LLCs and S Corps.

https://wcginc.com/kb/operating-agree...

https://wcginc.com/book

Thank you!

Warm Regards,

Bourbon and Business | Marijuana Banking

Mon, 23 Dec 2019 11:00:02 +0000

In this Bourbon and Business podcast episode, Jason Watson, CPA, and Quentin Leighty, President of First National Bank in Monument, Colorado, discuss the controversial issue of Marijuana Banking. Quentin sheds light on the gray areas of banking regulations at the Federal and State level, and, offers insight about the recently passed SAFE Banking Act, which protects financial institutions in legalized states that want to offer banking services to MMJ businesses. Special Thanks to Axe and the Oak Distillery for hosting our Bourbon and Business series!

This material is based on content from our website and our book, Taxpayer’s Comprehensive Guide to LLCs and S Corps.

https://wcginc.com/kb/operating-agree...

https://wcginc.com/book

Thank you!

Warm Regards,

Bourbon and Business | Business Banking Part 2

Mon, 16 Dec 2019 12:00:26 +0000

In segment #2 of Business Banking, Jason Watson, CPA, and Quentin Leighty, President of First National Bank in Monument, Colorado, continue their discussion about how to qualify for small business loans. Topics in this episode cover basic business lending options including collateralization, business acquisition lending, IRA loans, and SBA loans. Special thanks to Axe and the Oak Distillery for hosting our Bourbon and Business podcast series!!

This material is based on content from our website and our book, Taxpayer’s Comprehensive Guide to LLCs and S Corps.

https://wcginc.com/kb/operating-agree...

https://wcginc.com/book

Thank you!

Warm Regards,

WCG Inc. (formerly Watson CPA Group)
2393 Flying Horse Club Drive
Colorado Springs, CO 80921

719-387-9800 phone
719-345-2100 text message
855-345-9700 fax

https://wcginc.com/

Facebook - https://wcginc.com/facebook
LinkedIn- https://wcginc.com/linkedin
Twitter - https://wcginc.com/twitter
YouTube - https://wcginc.com/youtube

Bourbon and Business | Business Banking Part 1

Mon, 9 Dec 2019 12:00:05 +0000

In this first segment about Business Banking, Jason Watson, CPA sits down with Quentin Leighty, President of First National Bank in Monument, Colorado, to discuss the pros of small business owners utilizing community banking vs. going to the "big banks" to finance a business and the perks of relationship-based models for banking. Special thanks go to Axe and the Oak Distillery for graciously hosting our Bourbon and Business podcast series!

This material is based on content from our website and our book, Taxpayer’s Comprehensive Guide to LLCs and S Corps.

https://wcginc.com/kb/operating-agree...

https://wcginc.com/book

Thank you!

Warm Regards,

Tax Preparation Process

media@watsoncpagroup.com (Amanda Rowles, Joseph Bassett, Jason Watson CPA) — Sat, 26 Oct 2019 21:34:12 +0000

Jason Watson, CPA, of WCG Inc. (formerly the Watson CPA Group) with Amanda Rowles and Joseph Bassett discuss WCG's tax preparation process including safely handling your tax documents through our secure client portal and checklists to ensure completeness. They also discuss the turn-around time and how WCG interfaces with the client for missing information or clarifications.

The episode concludes with tax return reviews, tax filing deadlines and tax return extensions.

This material is based on content from our website and our book, Taxpayer’s Comprehensive Guide to LLCs and S Corps.

https://wcginc.com/getting-started/

https://wcginc.com/personal-tax-prep/

https://wcginc.com/wp-content/documents/SendingDocs.pdf

https://wcginc.com/book

Thank you!

Warm Regards,

WCG Inc. (formerly Watson CPA Group)
2393 Flying Horse Club Drive
Colorado Springs, CO 80921

719-387-9800 phone
719-345-2100 text message
855-345-9700 fax

https://wcginc.com/

Facebook - https://wcginc.com/facebook

LinkedIn- https://wcginc.com/linkedin

Twitter - https://wcginc.com/twitter

YouTube - https://wcginc.com/youtube

Operating Your S Corporation

media@watsoncpagroup.com (Amanda Rowles, Joseph Bassett, Jason Watson CPA) — Sat, 26 Oct 2019 21:19:50 +0000

Jason Watson, CPA, of WCG Inc. (formerly the Watson CPA Group) with Amanda Rowles and Joseph Bassett discuss the housekeeping of operating an S Corporation. Issues reviewed are tax planning including all household income sources ending in mock tax returns. They also discuss Periodic Business Reviews (PBRs) and WCG's model of unlimited business consultation.

They also review the tax filing deadlines for business returns (S Corps and Partnerships are March 15 whereas C Corporations are April 15). And! Just because pass-thru entities do not have an income tax obligation at the federal level, there might be state issues; that is discussed as well.

This material is based on content from our website and our book, Taxpayer’s Comprehensive Guide to LLCs and S Corps.

https://wcginc.com/business-services/periodic-business-review/

https://wcginc.com/corporate-tax-prep/

https://wcginc.com/tax-center/getting-started/

https://wcginc.com/book

Thank you!

Warm Regards,

WCG Inc. (formerly Watson CPA Group)
2393 Flying Horse Club Drive
Colorado Springs, CO 80921

719-387-9800 phone
719-345-2100 text message
855-345-9700 fax

https://wcginc.com/

Facebook - https://wcginc.com/facebook

LinkedIn- https://wcginc.com/linkedin

Twitter - https://wcginc.com/twitter

YouTube - https://wcginc.com/youtube

Late S Corp Election

media@watsoncpagroup.com (Joseph Bassett, Amanda Rowles, Jason Watson CPA) — Sat, 26 Oct 2019 21:06:37 +0000

Jason Watson, CPA, of WCG Inc. (formerly the Watson CPA Group) with Amanda Rowles and Joseph Bassett review the S Corp benefits, reduction of self-employment taxes and the whole S Corp vs LLC discussion. But! The crux of this episode is how to retroactively file for a late S Corp election using Form 2553 and IRS Rev Proc 2013-30.

Then this episode discusses the timing of the late S Corp election and how it impacts tax return filing deadlines, extensions, late payroll events, and other pitfalls. Here is a spoiler alert- filing a S corporation election is a piece of cake and we are batting 100% in getting the successfully accepted by the IRS with huge tax savings.

This material is based on content from our website and our book, Taxpayer’s Comprehensive Guide to LLCs and S Corps.

https://wcginc.com/late-s-corp-election/

https://wcginc.com/wp-content/documents/SCorpQuestions.pdf

https://wcginc.com/s-corp-election/

https://wcginc.com/book

Thank you!

Warm Regards,

WCG Inc. (formerly Watson CPA Group)
2393 Flying Horse Club Drive
Colorado Springs, CO 80921

719-387-9800 phone
719-345-2100 text message
855-345-9700 fax

https://wcginc.com/

Facebook - https://wcginc.com/facebook

LinkedIn- https://wcginc.com/linkedin

Twitter - https://wcginc.com/twitter

YouTube - https://wcginc.com/youtube

S Corp Election

media@watsoncpagroup.com (Joseph Bassett, Jason Watson CPA, Amanda Rowles) — Sat, 26 Oct 2019 20:50:30 +0000

Jason Watson, CPA, of WCG Inc. (formerly the Watson CPA Group) with Amanda Rowles and Joseph Bassett discuss the S Corp tax benefits versus the garden-variety LLC. The S Corp vs LLC discussion starts with general S Corp benefits, but does a deeper dive into reducing self-employment taxes and lowering audit rate risk.

They also review the Does It Make Sense questions such as-

Does your business earn over $30,000 net income after expenses? Say Yes.

Are you located in New York City or Tennessee where S corporation tax rates are egregious and suck up all the federal tax savings? New Hampshire? Say No. Although there might be exceptions where an S Corp makes sense NYC, TN and NH in order to maximize Section 199A deduction benefits.

Do you have other W-2 income that exceeds or comes close to exceeding the Social Security limits of $132,900 (2019)? Say No. If you say Yes, we need net business income to exceed $200,000 in #1 above so that the Medicare savings exceeds the “lost” Social Security tax paid by the S Corp.

Is this a going concern? In other words, is the business going to continue to earn the same income or more each year? Say Yes.

Do you have an LLC or some other entity in place that can be elected to be taxed as an S Corp? Say Yes. If you say No, we have options just not elegant ones such as shelf corporations.

Do you have other partners besides a spouse… business partners, that is? Say No. If you say Yes, are you currently splitting income based on ownership percentages or some formula? If you say Formula, then we’ll need to explore a multi-entity arrangement.

Does your entity own any appreciating assets such as real estate? Say No. We don’t put appreciating assets into an S corporation. Holding companies own real estate and operating companies elect S Corp status. Chinese Wall.

The episode concludes with how to file the S corporation election, Form 2553, etc.

This material is based on content from our website and our book, Taxpayer’s Comprehensive Guide to LLCs and S Corps.

https://wcginc.com/wp-content/documents/SCorpQuestions.pdf

https://wcginc.com/s-corp-election/

https://wcginc.com/book

Thank you!

Warm Regards,

WCG Inc. (formerly Watson CPA Group)
2393 Flying Horse Club Drive
Colorado Springs, CO 80921

719-387-9800 phone
719-345-2100 text message
855-345-9700 fax

https://wcginc.com/

Facebook - https://wcginc.com/facebook

LinkedIn- https://wcginc.com/linkedin

Twitter - https://wcginc.com/twitter

YouTube - https://wcginc.com/youtube

Entity Formations and Considerations

media@watsoncpagroup.com (Amanda Rowles, Joseph Bassett, Jason Watson CPA) — Thu, 26 Sep 2019 17:10:10 +0000

The Entity Formations and Considerations podcast by WCG Inc. (formerly the Watson CPA Group) explores basic business entity considerations such physical nexus, economic nexus, LLCs versus corporations, and how this impacts professionals such as attorneys, physicians, accountants, engineers, etc. plus adding other members such as a spouse or children. We also touch lightly on the benefits of an S Corp but we also have a full-blown podcast on that topic alone (stay tuned).

This podcast pulls from our book, Taxpayer's Comprehensive Guide to LLCs and S Corps, which is available on our website at-

https://wcginc.com/business-services/book/

Specific to this podcast, you can read Chapter 1 from our Knowledge Base articles as well-

https://wcginc.com/kb/category/taxpayers-guide-to-llcs-and-s-corps/chap-1-business-entities-llcs/

We hope you enjoy our podcast (it was our first one!). Please contact us with any additional questions or comments.

Warm Regards,

WCG Inc. (formerly Watson CPA Group)
2393 Flying Horse Club Drive
Colorado Springs, CO 80921

719-387-9800 phone
719-345-2100 text message
855-345-9700 fax

https://wcginc.com/

Facebook - https://wcginc.com/facebook

LinkedIn- https://wcginc.com/linkedin

Twitter - https://wcginc.com/twitter

YouTube - https://wcginc.com/youtube