Community Contributor Series: Debbie Wright

Hey Sugar Mamas! 

We’re back with another edition of the Sugar Mamas Community Contributor Series – where your fellow Sugar Mamas do a little email ‘take over’ and share their expertise with our community.

Want to be a community contributor? Sign up here >>

Today’s topic? Taxes. Yep, we’re going there. But, promise it will be fun (or at the very least, super helpful!) 😉 

Say hello to Debbie Wright, Enrolled Agent at TruStep Advisors and your trusted Sugar Mama Guide to help you navigate the ever-confusing world of taxes and keep more of your hard-earned money where it belongs!

Without further ado, here’s Debbie! 👇 

Baby it’s cold outside! 

As I look out my window at the newly fallen snow it reminds me of a couple of things. This is how the road before you may look to you when you are in business for yourself. As you read some of this information keep in mind the New Year ahead of you is like that new fallen snow – you can adjust the trail you have been on and make more confident steps that are based on good strong knowledge of IRS expectations versus potential delusional misconceptions someone has whispered in your ear however well-meaning they may be simply wrong. Educating yourself properly will give you a powerful advantage.

So, get your coffee, tea or drink of choice and let’s explore a few myths we need to bust!

1️⃣ “My business is too small for the IRS to care about!” Really, the IRS is really looking to help you be compliant. Red flags are excessive expenses – two of the hottest topics are mileage and meals. Oh, and miscellaneous or other expenses that don’t fit into the nice little boxes they have provided. They can throw out your prior expenses and tax and penalties will be applied. Make sure you understand the rules around the expenses you are deducting.

2️⃣ “As long as I talk about my business, I can take off the meals.” Well, not necessarily. The IRS believe you will eat during the day whether you work or not. Food is a personal need. It becomes business when the purpose in the meal is to recruit new business, partnership or employees, or you are traveling for business, and you eat when you are out of town. Food provided for team meetings, business gatherings, and employees that do not leave the job site is deductible. (Be careful of DOL rules with keeping employees on site without breaks and be mindful of hours of work.)

3️⃣ “I can pay everyone with a 1099, they can be responsible of their own taxes.” Let’s talk there isn’t enough space here for that discussion.

4️⃣ “I am traveling to the beach; I am meeting new client, and I now have a great travel deduction!” When you travel you need to think what is the “Main purpose” in my travel? We need to weigh that against what you can deduct. There are specific rules, counting days etc. You will be able to deduct something in most cases but in many cases, we may not be able to deduct it all.

5️⃣ “I can take off utilities, repairs. remodels everything when I own a business if I have a home office”. Well, not exactly – we first need to identify that your home office is acceptable to the IRS. You have no office space provided elsewhere and the space in your home is fully office. Secondly, we need to determine the size and then we will discuss all the expenses you are able to deduct. Do we want to depreciate your home in the process and make your life complicated in keeping all expenses or does it make sense to take the standard $5.00 square feet for your office. Each circumstance is different.

There are quite a few things to take into consideration when looking at your business, these are just a few. Choosing the steps wisely as you go. 

Joining Sugar Mamas is one of those awesome steps you have taken. You now have a good village to wrap their arms of support and voices of encouragement around you. I feel very blessed to have been given the opportunity to join you in your village and offer my voice of support to each of you where and when I can. 

TruStep Advisors is here to help you have confidence in every step. I would love to assist you in taking the fear out of business compliance, balancing books and making wise decisions for your business. It’s a new year whether you are a new business or a seasoned one let’s make it your best!!

Get in touch with Debbie and her team! 👇 

Debbie Wright
Enrolled Agent, Truststep Advisors
336-608-7146
https://www.trustepadvisors.com

debbie@trustepadvisors.com