1. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 1 Show Me The Money Shannon Nash, Esq., CPA The Nash Chronicles http://thenashchronicles.wordpress.com

2. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 2 Blogging As A Business Types of Business Tax Records (1099) and Bookkeeping Popular Deductions Audit Issues Taxes: what and when you have to pay Highlights

3. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 3 Anything you do with a Profit Motive DBA and 1099s = Business A Business Is….

4. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 4 Hobby = an activity just for the fun of it with no profit motive. Typically no DBAs or 1099s A Hobby Is….

5. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 5 Report all of the income but may not be able to take all of your hobby related deductions. Hobby Losses are treated as miscellaneous itemized deductions (i.e., which must be greater than 2% of your adjusted gross income before they are deductible). If Hobby Losses > hobby gain = no extra deduction Hobby Gain always has to be reported as income, regardless of the amount of hobby losses. Hobby vs Business Report all income and all deductions Business losses are fully deductible on Schedule C If Business Losses > Business income = extra deduction against W-2 income The net business gain or loss is what gets reported.

6. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 6 DBA (Doing Business As) Sole Proprietorship LLC (Limited Liability Company) S Corporation Types

7. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 7 As a “Business Owner” you Must… Generate your own income Fund your expenses Contribute to Social Security and Medicare Track and report income and expenses Pay income taxes on your profit Pay taxes at least 4 times per year Track and report any payments to contractors

8. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 8 You will get this form if you receive $600 or more for your services. Include the amount listed on Form 1099 as compensation on your Schedule C, Profit or Loss from Business (Form 1040). DO NOT attach Form 1099 to your tax return. Instead, just keep a copy of this form for your records. Form 1099

9. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 9 Report all of your business income Report business losses Net profit or loss is the included on the front on your 1040 Schedule C

10. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 10 Key “Deductions” Only 50% deductible Meals & Entertainment < $250,000 on equipment? Write it off Depreciation $.55 per mile Mileage Come up with a Business Percentage. Can’t take personal use. Phone & Internet X Home office deduction (form 8829) % of square footage for office Household expenses (rent, insurance, Utilities, etc)

11. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 11 Other Deductions AdvertisingTrade PublicationsDues/Subscriptions Legal FeesAccounting FeesContractors Business Entertainment Equipment RepairsPayroll Business TravelLocal TransportationTelephone SeminarsOffice SuppliesInsurance Postage & DeliveryBusiness GiftsCopying Bank Service ChargesResearch & ReferenceOffice Furniture Retirement PlansContributionsOffice Utilities Merchant FeesComputerWebsite

12. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 12 The self-employed and those earning over $100,000 annually are especially at risk for an audit. Do your best not to attract unwanted attention. If you don't wish to call attention to your tax return, don't do anything to raise a red flag. Be honest. When it comes to the IRS, honesty is truly the best policy. Avoiding An Audit - Rule of Thumb

13. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 13 Double and triple check your math. Many are chosen for audits because of errors on tax forms. Avoiding An Audit - Math is Key

14. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 14 Report all income, even if it's cash or tips Especially all monies reported on W-2s and 1099s. The IRS “matches” these forms with the numbers that you put on your tax return. Avoiding An Audit - The Matching Rule

15. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 15 Be fair with your deductions. Over-inflating numbers is almost the same as calling up the IRS and saying, "Audit me!" Avoiding An Audit - Inflation

16. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 16 If your business can’t show a profit in three-out-of-five years, the IRS will typically presume that you are not operating a business, but you are running a hobby. Presumption can be overcome with good records and proof of business motive Avoiding An Audit - 3 out of 5 Year Rule

17. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 17 The self-employed and those earning over $100,000 annually are especially at risk for an audit. Many of these people are sole proprietorships filing a Schedule C. The risk of an audit for corporations, partnerships and limited liability companies (with multiple owners) are significantly lower. Avoiding An Audit - Time to Incorporate?

18. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 18 W-2s 1099s Bank statements Credit card statements/year-end summaries House related statements/expenses Receipts for business expenses or related to improvements on your home Mileage logs/records Receipts for meals and entertainment Documents to Keep

19. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 19 What Taxes to Pay and When Self employment taxes Social security: 12.4% of first $106,800 income Medicare: 2.9% of all income Income taxesBased on total household income Quarterly payments1 st quarter: April 15 2 nd quarter: June 15 3 rd quarter: September 15 4 th quarter: January 15 Avoiding penaltiesNo penalty if you pay either: The same amount you paid last year 90% of what you should pay this year Penalty for underpaymentInterest on the amount of underpayment, currently at 4%

20. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 20 Resources Tax forms Profit & Loss (Schedule C)www.irs.gov/pub/irs-pdf/f1040sc.pdf Home office (Form 8829)http://www.irs.gov/pub/irs-pdf/f8829.pdf 1099MISChttp://www.irs.gov/pub/irs-pdf/f1099msc.pdf Online services Sample independent contractor agreements www.docstoc.com Online invoicing and time tracking www.freshbooks.com www.harvest.com www.blinksale.com Paypalwww.paypal.com Nolo’s Small Business Taxeshttp://bit.ly/Vn50B Online bookkeepingwww.outright.com http://oe.quickbooks.com

21. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 21 Twitter- http://twitter.com/shannonnashhttp://twitter.com/shannonnash Linkedin - http://www.linkedin.com/pub/shannon-nash- esq-cpa/0/a97/7b1http://www.linkedin.com/pub/shannon-nash- esq-cpa/0/a97/7b1 Facebook- http://www.facebook.com/pages/Tax- Diva/309254607988http://www.facebook.com/pages/Tax- Diva/309254607988 Blog - http://thenashchronicles.wordpress.comhttp://thenashchronicles.wordpress.com Myspace - http://www.myspace.com/shannonnashhttp://www.myspace.com/shannonnash Media Page -http://www.nashgroup-usa.com Shannon Nash Contact Info

22. Atlanta Office 1800 Peachtree St. Suite 809 Atlanta, GA 30309 404-352-9019 Los Angeles Office 6320 Canoga Ave., 15th Floor Woodland Hills, CA 91367 818-986-2665 22 Q & A