Tax TUESDAY...or Wednesday...or Whatever!

I should know better than to put myself in a box.  I should know better than to promise my blog stalkers that I am going to write about taxes...on Tuesday.  Because, Tuesday came and Tuesday went.  I can't exactly recall what happened on such a chaotic Tuesday that I couldn't squeeze in 20 minutes to write.  But, that's what I love about Paparazzi!  I am my own boss.  I make my own hours, and if something more important (or just fun) pops up, I take an extra-long lunch break. Or, I come into work super late.  Or, I wear my pajamas to work.  Or, I just call in sick.  And nobody cares.  Except maybe for you...my blog stalker...who was hoping & wishing & waiting all day Tuesday.  Or, since you too are a Paparazzi Consultant, you took the day off as well! Good for you!!

The Dreaded IRS

My father has owned his own business--of some sort or another--for over 20 years.  Whether it be a little bit of this on the side to make extra money, or a little bit of that to pay for Christmas.  I think over his lifetime he has owned 10 different businesses.  And he has never once been audited by the IRS until just this last year.  Why?  Because of his beloved stamp collection.  He had a personal loss of over $50,000 in stamps, and they discovered a leak in the roof.  He was never once audited for his businesses, because he was honest.  He kept honest records and he never went hog-wild with his expenses.  Sadly, our family never went on lavish vacations to Hawaii for "business."  

That's the secret. Be honest. Keep good records, and don't get too crazy!!

There are tons of business expenses that you probably haven't even considered.  Expenses that just a part of what you do--but that help you promote your business.  Start thinking more about this...and I will start to share some of my tips & ideas too!

End of Month Records

Basically, your end of month sheets will have 4 columns.  DATE/REASON, Expenses, Mileage, Income and NOTES.  For all your home parties, if you have them organized by my envelope system (see last week), then the rest is going to be super easy for you.  Make double-triple sure that if you have an expense, you have a receipt!!  Otherwise, you are basically lying to Uncle Sam...or at least that is how "he" will perceive it.  I know if you are viewing this on your mobile device, my columns may look goofy & off, but I know they align correctly on your laptop or computer.

Here's an example of my August Tax Records:

DATE/REASON                            Expenses     Mileage     Income    NOTES

August 15th/Sara Home Party         $63.12         109 mi      $244.50   

August 23rd/USPS                                              12 mi                    pick up Papa order 

August 24th/Walmart                     $12.52            34 mi                   stationary/office supplies

August 27th/Paparazzi                   $56.89                                        

August 28th/Soccer Field                                     12 mi                    pass out business cards

See? Pretty simple, right?  At the end of the month, just tally up your totals for each column.  And come tax time, you will be rocking it!

UP & COMING for Tuesday TAXDAY;

*Milking It--Just a Little Bit!

*Online--How has this changed our tax deductions?

*Home Office--If you have the space, make it count!!