2 DISCLAIMER This presentation is not tax advise Consult your tax advisorThis presentation is not legal adviceConsult your legal advisorThis presentation is not financial management adviseConsult your financial advisor
3 Why Keep RecordsHelp get you where you need to go when you need to be thereHelps avoid conflicts (spouses & others)Easier to complete taxesStay out of jailStay out of troubleMEMORIES FAIL
4 What Records to KeepAssignmentsSchedulesIncomeExpenses
5 How to Keep Records Electronic Paper Computer iPad Other electronic devicePaperWho has home computer? Who doesn’t?
6 Electronic Record Keeping Computers are your friendExcel spreadsheetOrganize spreadsheet to provide you everything you need on daily basis and at end of yearWho can use Excel? Who can’t?
7 Sample Spreadsheet Maintain on monthly basis Items to record AssignmentsSchedulesIncomeExpenses
8 Assignments Use Arbiter or other schedules you’re given Day -- Date Time LocationType assignment -- PartnerRolePayAmountWhen paidHow paid
9 SchedulesClinicsMeetingsOther events requiring your time
10 Income Match fees Travel fees Per diem and other income Important to have a method to record how much you were paid; if you have been paid, when you were paid; how you were paid.
11 ExpensesYou may deduct all expenses that are reasonable and necessary to produce income from your job (avocation)Relate expenses to IRS yearly reporting
12 Car Expenses Record actual expenses OR Take standard deduction Parking fees & tollsUse for overnight trips rather than daily trips
13 Commissions & Fees Commissions you pay an assigner or organization. DuesMemberships in professional organizationsCamps & clinicsComputer programs you pay to use (must be related to avocation)
14 Insurance Not health insurance (usually) Generally liability insurance or other business insurance
15 Legal and Professional Services Bookkeeper or accountantLegal servicesFinancial advisorTax advisorOrdinary and necessary expenses directly related to operating your business (avocation).
16 Office Expenses Postage Other things related to maintaining an office or records related to your avocationCopies and bindingNotebooks
17 Pension and Profit Sharing Plans SIMPLE IRAsMay be able to claim here or may have to claim on 1040Could be one participant retirement plan (seek tax advise)
19 SuppliesIncidental material & supplies for which you kept no inventory or record of useEquipment (whistles, cards right height, etc.)Uniform itemsShirtsSlacks (if used only in avocation)ShoesBelt
20 Travel & LodgingLodging and transportation expenses connected with overnight travel for businessAirline, bus, or rail ticketsHotelsShuttle serviceHotel or airport parking
21 Meals & Entertainment Reasonable and necessary (many prohibitions) Can deduct actual cost (receipts necessary) or use standard deduction (IRS Pub 1542)
22 UtilitiesCan deduct if directly related to producing income in avocationCell phoneExtra phone lineInternet serviceNOTE: Generally cannot deduct basic service or primary phone line
23 Mileage Deduction Commuting Miles (not deductible) Travel between home and workPersonal Use (not deductible)Self-explanatoryBusiness MilesTravel necessary for business
24 An ExampleYou have an assignment at Any HS and will travel there directly from your job. The total miles you drive that day is 78. It is 28 miles from your home to your job. You may deduct 22 miles for business travel. You have 56 commute miles. If you go home before going to your assignment, your mileage from your home to your assignment is normally not deductible.
25 Aids for Mileage Records Mileage log from standard templates
37 Summary Keep good records Use records as an aid Income taxNotify partnersKeep you on timeCan use to answer who, what, when, where, why, & howShare records with those who need to know to keep you out of trouble