Presented by Kimberly Adams, CPA, CFP, MsT

Transcription

1 Presented by Kimberly Adams, CPA, CFP, MsT And Market America Master Coordinator

2 Address common tax questions My professional background: CPA, CFP, Masters in Taxation Over 30 years in the tax field PG & D Junkie for over 30 years MA for 12 years Owner of Total Wealth Consulting, LLC

3 Registering g Your Business Sales & Use Tax Income Tax Recordkeeping/Financial Tips Question and Answer Period

4 The contents of this presentation are in no way to be construed as tax advice and is presented as general information only. Please consult with your tax advisor to address your own particular situation.

5 Go to Click on Forms and More I have uploaded complete instructions Go to Follow my instructions for PA100 Assumes sole proprietorship IMPORTANT: SAME NAME AS ON YOUR DISTRIBUTORSHIP

6 You will then receive Sales Tax License Complete PA Rev-1220 (PA Exemption Cert.) - insert your license # on line 3 and sign Complete the MA Sales Tax Agreement Form Mail all 3 forms to MA - P.O. Box 35364, Greensboro, NC or to marketamerica@marketamerica.com Attn: Data Processing

7 Once MA Receives, you will not be charged sales tax on your orders you re a reseller You must then charge your customers sales tax if the item is sales taxable You then remit to the state E-tides to file and pay electronically

8 What is sales taxable varies by state and there can be a local sales tax component as well In PA - necessities (as defined by the state not you ) are not taxable H & N, TLS, Torch - not sales taxable Motives, SNAP, Personal Care, etc. are taxable

9 For a listing of rates by state: For the PA DOR s Retailers Info Guide: ument/755531/rev-717_pdf Return Due Dates based on tax amounts payable most will be quarterly or semi-annual refer to guide above. Semi-annual if < $300/year in tax

10 The tax on products purchased for personal use that are sales taxable but none was paid to vendor For example, when you buy Motives, SNAP, Shampoo, etc. for personal/family use States are getting more aggressive with this as it also includes purchases from all online vendors Current rules still apply but may change

11 I print to pdf and save all receipts that would be subject to sales or use tax to a folder This allows me to easily see what I need to report each period

12 Independent Contractor vs. Employee MA Distributor = Independent Contractor Employee W-2 and taxes withheld Independent Contractor 1099 (from MA and Itransact) and estimated payments required

13 Employee Self-Employed Earnings W Tax Withholding Yes No SS/Medicare w/h Yes SE paid w/rtn 1040 Reporting Line 7 Schedule C

14 Business Entity Type Sole Proprietor most distributors include Schedule C with your 1040 LLC Single Member treated as sole prop for Federal tax purposes Can still file a joint return with your spouse

15 Schedule C Part I Gross Receipts (1) Less: C of GS (4) Gross Profit (5) 1099/Prod Sales Cost of Prod Sold Gross Profit Go to to download copy of Schedule C & Instructions Just search ( ) refers to lines on the form

16 Schedule C Part II Expenses Training line 27a (other) Travel hotel, air, gas, parking, tolls 24a Meals 50% limitation 24b Car mileage or actual expense method -9 Transfer Buy 4 or 27a Phone/Internet 18 or 27a Annual Renewal/UFMS 18

17 Schedule C Part II Expenses Computer/Office Equipment 13 (S. 179) Phone/VM/Internet 18 or 27a Business Dev (Networking) 27a Website/E-commerce 18 or 27a Postage, Supplies, etc 18 Home Office Deduction 8829/line 30 Advertising...

18 Schedule C III Cost of Goods Sold Beginning Inventory = last year s ending + Purchases Total Products available for sale - Ending Inventory = Cost of Goods Sold this goes to line 4 in Part I

19 Considered For Profit if: You carry it out in a biz like manner Time and effort indicate intent to profit You depend on the income Losses - start up/beyond your control You ve made a profit in similar activities Makes profit in some years You can expect to make a profit

20 IRS presumes For-Profit if: Profit in at least 3 of previous 5 years Horses 2 out of the previous 7 years Doesn t mean that t it s a Hobby if you don t!

21 Mileage Log Who, what, where, when, mi. Meals Who, what, where, when, $ Use debit/credit cards as much as possible Use one credit card for business only If married, can get 2 MA cards max IBV Set up a separate checking account My high tech Excel sheet Quickbooks Expensify, other apps

22 Lower Your Taxes Big Time Sandy Botkin Hire a bookkeeper if it s too much for you. Turbo Tax Remember, you made the mess, we accountants are just documenting it! Don t wait until the last minute!

23 -newsletter sign up b

24 Keep them general in nature please.

25 Thanks for Attending!