The first speaker for today’s meeting was Kay Cruson our accountant and tax preparer in Lakewood, Colorado. The item that Kay wanted to cover today was the Home Office Deduction. Historically, using the Home Office Deduction was viewed by taxpayers as a “red flag” to the IRS; many taxpayers have chosen not to take this legitimate deduction because of this misconception. It is only a “red flag” to the IRS if the taxpayer is unreasonably aggressive in taking deductions. In fact, the IRS has made great efforts starting in 2013 to offer two ways to take the Home Office Deduction: the simplified method and the regular method. The two requirements to using this deduction – that it is regular and exclusive use and is the principal place of business. From here, Kay moved on to explain the Regular Method – first you must provide the square footage of your home and the space you use for the office (this is required for both methods). You need to take time to figure out your allowable deduction this can include:
1) Repairs and maintenance – excluding capital improvements.
2) The utilities: you have to break each down by square footage used.
HOA Dues – excluding special assessments
3) Depreciation of Your Home
Enter the smaller of your home’s adjusted value or its fair market value. This requires that you keep up on these
values and can be adjusted every year. Only the basis of the building is depreciable – the land is not.
This can be recaptured when selling – 250,000 exclusion for single and 500,000 for married
4) Carryover of Unallowed Expenses
The carry forward from previous year if there is a net loss from the business.
Then Kay walked us through the IRS Form 8829 Expenses for Business Use of Your Home – explaining in which section each of the deductions go in and gave us each a 9 x 12 catalog envelope to put all of our 2017 receipts and tax info over the year. This is to help you tax preparer out next tax season. If you are needing an accountant or someone to prepare your taxes, Kay Cruson can help you through all of the ins and outs of your books.
Kay Cruson * Accounting & Tax * 303.937.3468 * firstname.lastname@example.org
Our second speaker was Kelly Baillie of LINCS Carpet Care in Wheat Ridge, Colorado. Kelly talked today about how to extend the life of your carpet. First, she spoke to how you treat the carpet in your home – do you have kids or pets? When you enter your home does everyone take off their shoes? How often do you vacuum? These are all items that will impact the life of your carpet. With kids and pets going in and out it is tough to have them wipe their feet every time. The dirt brought in on these feet in your traffic lanes gets ground in and wears down the fibers in the carpet. To help prevent this it is a good idea to have a tile or wood entrance area along with some carpet runners to absorb that dirt. Vacuuming often also helps keep the dirt and grunge out, this also depends on your lifestyle if you have a lot of action in your home, vacuuming weekly will help maintain your carpet. If you live by yourself or a couple with no pets or kiddos you probably can get by with every two weeks. However, carpet cleaning probably should be done at least twice a year to help keep the carpet fresh. The style and make of the carpet you put in will determine how long they last and how well they clean, you don’t have to spend a fortune to get quality carpet. The next items that Kelly discussed are how to clean up spills when you can’t have LINCS Carpet Care run out and get it up. When you spill most liquids remember that the small area you see spreads out underneath, so start blotting – don’t rub – at least 6” from the center of the spill. If you have dogs or cats and the occasional episode of vomiting – clean up the vomit and then mist the area with hydrogen peroxide and blot the area until the rag come up clean. There are good products out there that you can use as well such as Avenge or Nature’s Miracle, just remember no matter what product you use – blot don’t rub. LINCS Carpet Care will take care of that for you as well and when scheduling a carpet cleaning keep in mind that they will clean the carpet and upholstery in your RV as well – just schedule it at the same time! They also have Spot and Spill “Insurance” in that they will come out and do a spot cleaning for you that is good at your home or if you have an accident at a friend’s house that is covered too. So, if you need a good carpet cleaning company that won’t cut corners they will clean them give Kelly Baillie and LINCS Carpet Care a call!
Kelly Baillie * LINCS Carpet Care * 303.456.4555 * email@example.com