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Bidding on jobs/projects - Quite often, you have some serious upfront costs when you make proposals. There might be some printing, some development, lots of entertainment, even gifts. And you don't always land that client. Hardly anyone has a 100% close rate.
Gifts - Since gifts are barely deductible, you have three alternatives:
1) To
$25, you can add cost of wrapping, shipping, and engraving. So, when you do your bookkeeping, record gift at $25.00, then engraving as a printing cost, wrapping as an office expense, sales taxes are taxes, and shipping/delivery is shipping. This can triple your gift expense deduction.
2) ‘De minimis’ gifts - these are promotional items that you create with your company's logo. If you pick out really good things (gold Cross pens, briefcases, silk golf shirts, etc.) slap your logo on them you have transformed a gift into 'advertising' or 'promotion.'
4) Supplies for trade shows, photo shoots or research. Sometimes you have to get some pretty unusual things for your ads or booths.
KARON: OK, let’s jump to a different area of tracking. Do you normally include expense on your spreadsheet for month you actually spend money, or month expense was paid? For example... if I bought ezine advertising in October using my credit card, but statement didn't come in until November... would I include expense in my Oct or Nov spreadsheet?
EVA: Good question. First of all, most people are 'cash basis' taxpayers. That means you only deduct expenses when you PAY them. Some businesses are on 'accrual.' Which means that they can deduct expenses when they occur even if they are not paid until 90 days later. The two exceptions to this rule are credit cards and taxes.
As a result, this is a big mistake among people using credit cards. You CAN include all credit card expenses when you made purchase. You see a credit card charge is considered a loan.
KARON: Eva, you’ve given us some excellent information here. I thank you so very much for you time. You have some other information available for us, don’t you?
EVA: Yes! I publish a free weekly newsletter that your subscribers can get at http://www.taxmama.com. At that same site, they can get latest IRS news as well as access to some free workshops, arranging to have me speak at their event and some incredible resources.
KARON: Eva, thanks again! Eva Rosenberg, your TaxMama, has taken most dreaded topic, taxes, and turned it into fun. Aside from saving people amazing sums of money on their taxes, she also gives you a warm, fuzzy feeling! Imagine what she can do for your business.
Most buying decisions are emotional. Your ad copy should be, too! Karon is Owner and President of KT & Associates who offers targeted copywriting, copy editing & ezine article services. Subscribe to KT & Associates' Ezine "Business Essentials" at join-buinessessentials@lyris1.listenvoy.com or visit her site at http://www.ktamarketing.com
