Mastering the Home Office Deduction: Key Rules and Common Pitfalls

In this episode of Let's Get Fiscal, hosted by Anastasia Myiesha and Danielle from Coterie Tax, the focus is on understanding the home office deduction. The hosts explain what qualifies as a home office, common mistakes that trigger IRS audits, and how to accurately calculate the deduction. They emphasize the importance of the workspace being the primary place of business and used exclusively for work. The episode also covers how to handle deductions for rent versus ownership, and the importance of precise square footage calculations and expense tracking. Whether you're a content creator or running a home-based business, this episode will guide you through the nuances of claiming a home office deduction confidently.

00:00 Introduction to Home Office Deductions

00:35 Understanding Home Office Qualifications

01:15 Exclusive Use and Principal Place of Business

03:13 Square Footage and Simplified Method

08:24 Renting vs. Owning: Deduction Differences

14:20 Audit Precautions and Common Mistakes

18:54 Conclusion and Final Tips

🔗 Helpful Links & Resources

Listen on Apple Podcasts: https://podcasts.apple.com/us/podcast/lets-get-fiscal/id1831050448

Listen on Spotify: https://open.spotify.com/show/08AjRNfqQJBdG1vPazii4Q?si=fb0379d3bef94f11 

Watch on YouTube: https://www.youtube.com/@letsgetfiscalpodcast 

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Maximizing Tax Savings through Smart Depreciation Strategies

In this episode of Let's Get Fiscal, hosted by Anastasia Myiesha and Danielle of Coterie Tax, the focus is on understanding depreciation and its impact on tax savings for creative business owners. The hosts explain different methods of depreciation, including safe harbor elections, Section 179, and bonus depreciation, and how these can affect taxable income and cash flow. They also discuss the nuances of depreciating high-cost items, timing of purchases, and the interplay between personal and business use of equipment. The episode provides valuable insights into optimizing depreciation strategies to maximize financial benefits and ensure compliance with tax regulations.

00:00 Introduction to Smart Tax Deductions

00:11 Welcome to Let's Get Fiscal

00:32 Understanding Depreciation

01:38 Safe Harbor Election Explained

08:50 Section 179 and Bonus Depreciation

12:07 Understanding Section 179 and Bonus Depreciation

12:32 Impact of Depreciation on Business Income

13:57 Strategic Use of Depreciation for Business Growth

17:20 Personal vs. Business Use of Equipment

20:17 Timing and Depreciation Rules

22:18 End-of-Year Tax Strategies for Creators

24:27 Conclusion and Final Thoughts

🔗 Helpful Links & Resources

Listen on Apple Podcasts: https://podcasts.apple.com/us/podcast/lets-get-fiscal/id1831050448

Listen on Spotify: https://open.spotify.com/show/08AjRNfqQJBdG1vPazii4Q?si=fb0379d3bef94f11 

Watch on YouTube: https://www.youtube.com/@letsgetfiscalpodcast 

📬 Got a question for the show?

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EP20 - The Great S Corp Clean-Up: 5 Things To Fix Before Filing

Essential S Corporation Cleanup Tasks for Tax Season Success

In this episode of Let's Get Fiscal, hosted by Anastasia Aiello and Myiesha Fisher from Coterie Tax, the focus is on the critical cleanup items every S Corporation owner needs to address before filing taxes. They discuss the five key areas that can cause major delays and complications if not properly handled: bank reconciliation, expense categorization, payroll processing, accountable plan documentation, and overall financial accuracy. The hosts emphasize how these issues, if left unresolved, can lead to filing extensions and unexpected tax liabilities. They provide practical guidance on identifying and fixing common bookkeeping errors, the importance of early preparation, and when to seek professional help. The episode aims to help creative business owners avoid the costly pitfalls of poor financial record-keeping and ensure a smooth tax filing process.

00:00 Introduction to S Corp Tax Preparation

00:40 The Busy Season Reality Check

01:03 Common Issues That Delay Tax Filing

01:58 The CPA's Financial Review Process

02:51 Understanding Audit Readiness

03:33 Tax Payment Deadlines and Extensions

04:20 Essential Item #1: Complete Transaction Records

04:43 The Importance of Bank Reconciliation

05:46 Common Bank Feed Issues

07:04 Double Income Recording Pitfalls

08:01 Essential Item #2: Proper Expense Categorization

10:15 Avoiding the "Ask My Accountant" Trap

11:21 Essential Item #3: Payroll Processing for S Corps

13:31 Understanding Officer Compensation Requirements

15:01 Essential Item #4: Accountable Plan Documentation

17:07 Tracking Personal Expenses Paid for Business

18:44 Essential Item #5: Financial Accuracy Verification

20:38 The Payroll Triangle Check

23:25 Getting Professional Help Early

24:36 Year-End Action Items

25:06 Overcoming Financial Vulnerability

27:01 Breaking the Tax Payment Hamster Wheel

28:30 When to Seek Professional Assistance

🔗 Helpful Links & Resources

Listen on Apple Podcasts: https://podcasts.apple.com/us/podcast/lets-get-fiscal/id1831050448

Listen on Spotify: https://open.spotify.com/show/08AjRNfqQJBdG1vPazii4Q?si=fb0379d3bef94f11 

Watch on YouTube: https://www.youtube.com/@letsgetfiscalpodcast 

📬 Got a question for the show?

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EP19 - Countdown To Filing - Year End Tech and Tax Prep For Creatives

Essential Tech Tools for Creative Business Tax Efficiency

In this episode of Let's Get Fiscal, hosted by Anastasia Myiesha and Danielle from Coie Tax, the focus is on the essential tech tools every creative business owner needs for an efficient tax season. They discuss the importance of evaluating and managing subscriptions, accounting software options like QuickBooks, Xero, and Wave, and the benefits of specialized payroll software like Gusto. The hosts also emphasize the necessity of maintaining organized records and being consistent with bookkeeping to ensure compliance and avoid costly errors. They provide practical advice on when to transition bookkeeping tasks to a professional and the value of early preparation. The episode aims to equip business owners with the knowledge to make informed decisions about tech investments, ultimately saving time and money.

00:00 Introduction to Tax Season Essentials

00:35 Evaluating Business Subscriptions

02:05 Importance of Record Keeping

02:30 Choosing the Right Accounting Software

04:35 Understanding Business Structures and Taxes

10:56 The Role of Payroll Systems

13:55 Quarterly Filings and Payroll Services

14:48 Cost-Effectiveness of Payroll Software

17:22 Importance of Documentation

18:51 When to Hire an Accountant

20:52 Consistency in Bookkeeping

24:46 Choosing the Right Software

26:20 Final Thoughts and Recommendations

🔗 Helpful Links & Resources

Listen on Apple Podcasts: https://podcasts.apple.com/us/podcast/lets-get-fiscal/id1831050448

Listen on Spotify: https://open.spotify.com/show/08AjRNfqQJBdG1vPazii4Q?si=fb0379d3bef94f11 

Watch on YouTube: https://www.youtube.com/@letsgetfiscalpodcast 

📬 Got a question for the show?

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EP18 - Family Payroll How to Hire Your Kids (and Stay Legal)

Hiring Your Kids and Smart Income Shifting Strategies

In this episode of Let's Get Fiscal, hosted by Anastasia Myiesha and Danielle from Coterie Tax, the focus is on the benefits and legalities of hiring your children through your business to optimize tax planning. The hosts delve into the necessity of giving your kids a real job with appropriate documentation, job descriptions, and proper pay to meet IRS standards. They discuss how this strategy, if executed correctly, can lead to significant tax savings by income shifting. The episode also covers differences in this approach depending on the business structure (LLC vs. S Corp) and emphasizes the importance of treating children as real employees with the necessary paperwork, such as W2s. Additionally, they share insights on utilizing Roth IRAs for children's future expenses, including education and first home purchases. If you're already planning to give your kids money for chores or their future, this episode guides you on making it a tax-advantaged move.

00:00 Introduction to Hiring Your Kids for Tax Benefits

00:42 Understanding Legalities and Common Misconceptions

02:16 Documenting and Justifying Your Child's Role

04:29 Practical Examples and Age-Appropriate Tasks

07:37 Tax Implications for Different Business Structures

09:41 Real-Life Case Study and Best Practices

12:18 The Importance of Documentation

12:48 Tax Benefits of Shifting Income to Children

14:15 Maximizing Savings with Roth IRA

17:07 Treating Your Child as an Employee

20:42 Final Thoughts and Practical Tips

🔗 Helpful Links & Resources

Listen on Apple Podcasts: https://podcasts.apple.com/us/podcast/lets-get-fiscal/id1831050448

Listen on Spotify: https://open.spotify.com/show/08AjRNfqQJBdG1vPazii4Q?si=fb0379d3bef94f11

Watch on YouTube: https://www.youtube.com/@letsgetfiscalpodcast

📬 Got a question for the show?

Submit it here: https://www.coterietax.com/qa

🎧 Want to listen to more episodes?

Catch the latest episodes at: https://www.coterietax.com/podcast

📊 Need personalized help with your business finances?

Learn more about working with Anastasia and Myiesha: https://www.coterietax.com

In this episode of 'Let's Get Fiscal,' hosts Anastasia Myiesha and Danielle from Coterie Tax delve into the complexities and potential pitfalls of S Corporations. They discuss common issues like confirming your S Corp status, dealing with payroll requirements, separating personal and business expenses, and ensuring equal treatment of shareholders. They also provide actionable advice on how to navigate these challenges to prevent costly mistakes and avoid IRS complications. Whether you're a single-member LLC considering the switch or a current S Corp owner, this episode offers essential tips to help you manage your business finances effectively.

00:00 Introduction to S Corp Pitfalls

00:37 Common Issues with S Corp Status

01:29 Confirming Your S Corp Status

03:45 Acting as an S Corporation

09:25 Payroll Requirements for S Corps

14:01 Understanding Payroll and Distributions

14:31 Livable Wage Considerations

15:53 Reasonable Compensation Studies

16:15 Importance of Payroll Compliance

17:19 Co-Mingling Business and Personal Expenses

20:14 Accountable Plans and Reimbursements

23:08 Treating Shareholders Equally

26:33 Deciding on S Corporation Status

27:31 Final Tips and Contact Information

🔗 Helpful Links & Resources

📬 Got a question for the show?

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📊 Need personalized help with your business finances?

Learn more about working with Anastasia and Myiesha: https://www.coterietax.com

Understanding Tax Brackets & Effective Tax Strategies – Let's Get Fiscal!

In this episode of Let's Get Fiscal, hosted by Myiesha and Anastasia from Coterie Tax, the duo demystifies the complex topic of how taxes are calculated. They clarify the difference between marginal and effective tax rates and explore end-of-year strategies to optimize tax savings, ensuring that every extra dollar earned is welcomed. Using practical examples, they explain how progressive tax rates work and debunk common misconceptions about tax brackets pushing one into higher overall tax rates. They also discuss the concept of 'constructive receipt' and strategies for managing income at the close of the financial year. This episode provides essential insights and actionable tips for creative business owners aiming to enhance their financial planning and tax efficiency.

00:00 Introduction to Tax Concerns

00:20 Meet the Hosts

00:44 Understanding Tax Calculations

07:14 Marginal vs. Effective Tax Rates

09:03 Year-End Tax Strategies

09:40 Constructive Receipt Explained

14:05 Depreciation and Purchases

18:48 Conclusion and Final Tips

🔗 Helpful Links & Resources

📬 Got a question for the show?

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Learn more about working with Anastasia and Myiesha: https://www.coterietax.com

How to Maximize Your Charitable Giving with Donor-Advised Funds

In this episode of Let's Get Fiscal, hosts Anastasia and Isha spotlight donor-advised funds (DAFs) as a powerful tax strategy to enhance your charitable contributions. They explain how bundling several years' worth of donations into a DAF allows you to surpass the standard deduction and receive a larger tax benefit, thus amplifying the impact of your generosity. The discussion includes the mechanics of DAFs, key deadlines, and the advantages of using community-based organizations to align your donations with your values. Tune in to learn how this approach can help high-income earners optimize their giving and make a bigger difference.

00:00 Introduction to Donor-Advised Funds

00:40 Meet the Hosts

01:04 Understanding Donor-Advised Funds (DAFs)

02:06 Tax Benefits of DAFs

05:03 How to Set Up a DAF

06:19 Choosing the Right DAF Provider

07:17 Family Involvement in DAFs

08:24 Maximizing Your Donations

10:06 Conclusion and Holiday Wishes

🔗 Helpful Links & Resources

📬 Got a question for the show?

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🎧 Want to listen to more episodes?

Catch the latest episodes at: https://www.coterietax.com/podcast

📊 Need personalized help with your business finances?

Learn more about working with Anastasia and Myiesha: https://www.coterietax.com

Decoding Sales Taxes for Creative Professionals

In this episode of Let's Get Fiscal, hosted by Aisha and Anastasia from the women-led team at Coie Tax, the focus is on understanding sales taxes for creative professionals. Topics covered include the necessity of sales tax permits for events like weekend popups, distinctions between physical and economic nexus when shipping products across state lines, and the implications of trust fund taxes. The hosts also discuss scenarios for physical vs. digital product sales, challenges posed by various state laws, and best practices for compliance. The episode aims to help business owners navigate the complexities of sales tax, ensuring they remain compliant and avoid hefty penalties.

00:00 Introduction to Sales Tax for Creative Professionals

01:30 Understanding Sales Tax Nexus

04:03 Economic Nexus Explained

10:15 Marketplace Facilitators and Compliance

14:20 Year-End Considerations and Global Sales

17:55 Final Thoughts and Contact Information

🔗 Helpful Links & Resources

📬 Got a question for the show?

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Learn more about working with Anastasia and Myiesha: https://www.coterietax.com

Understanding How to Pay Yourself: From Salary to Distributions

In this episode of the Let's Get Fiscal podcast, hosts Myiesha and Anastasia from Coterie Tax discuss the various ways business owners can take money out of their business. They cover topics such as salary, owner draws, dividends, distributions, and guaranteed payments, and explain the importance of doing it correctly to avoid penalties from the IRS. The episode dives into the implications for sole proprietorships, single-member LLCs, multi-member LLCs, partnerships, S-corporations, and C-corporations, providing practical advice on setting reasonable compensation and managing tax obligations. The hosts also touch on additional strategies for transferring wealth from the business to personal accounts through retirement plans and accountable plans for reimbursements.

00:00 Introduction: Understanding Business Profits

00:22 Welcome to Let's Get Fiscal

01:09 The Importance of Proper Fund Transfers

03:02 Sole Proprietorships and Single Member LLCs

03:53 Multi-Member LLCs and Partnerships

05:44 S Corporations: Reasonable Compensation and Distributions

09:05 C Corporations: Dividends and Double Taxation

12:19 Additional Wealth Transfer Strategies

15:34 Year-End Considerations and Professional Help

16:55 Conclusion and Next Steps

🔗 Helpful Links & Resources

📬 Got a question for the show?

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🎧 Want to listen to more episodes?

Catch the latest episodes at: https://www.coterietax.com/podcast

📊 Need personalized help with your business finances?

Learn more about working with Anastasia and Myiesha: https://www.coterietax.com