WCG Inc. (formerly the Watson CPA Group) is a progressive tax and consultation firm in Colorado Springs providing nationwide advice to taxpayers and business owners.
Bourbon and Business | Business Tax Deductions Part 2
00;00;14;09 [Jason]: Jason Watson with WCG Incorporated here in Colorado
Springs, we're a local tax and accounting firm. Joined by Rachael
Weber and Joseph Bassett, both tax professionals for us. We're
also hosted by Axe and the Oak here in Colorado Springs, they've
been gracious enough to open up early for us, part of our Bourbon
00;00;31;29 series, podcasts and videos. We just got done wrapping up a video
and podcast on some of the bigger deductions that we see, cars,
that's always a big one for most small
00;00;42;29 business owners, meals and travel. We're going to talk this time or,
this time around about home office and then all the other like
goofier ones, if you will.
00;00;54;25 So, you know, tell me the rules, Rachael, on the home office
00;01;00;04 [Rachael]: It's got to be used regularly and exclusively
00;01;03;27 [Jason]: Okay.
00;01;04;26 [Rachael]: In your home.
00;01;05;13 [Jason]: Okay, regular and exclusive and have a business.
00;01;09;01 [Rachael]: A Business purpose.
00;01;09;14 [Jason]: That's probably true for every deduction on a plan, right?
00;01;12;18 [Rachael]: Yeah.
00;01;12;27 [Jason]: For a business deduction to be a legitimate business
deduction it has to have a business purpose. So, use regularly and
exclusively. So, can you break those words down for me? What's
00;01;23;15 [Rachael]: "Regular" means you would be checking your emails,
invoicing your customers, doing administrative work. Okay. Meeting
with clients, holding your inventory. It could mean a whole host of
00;01;37;27 [Jason]: Right.
00;01;38;03 [Rachael]: of things. You're just doing that on a regular basis, not
once a month
00;01;42;26 [Jason]: Right.
00;01;43;14 [Rachael]: but on a regular basis.
00;01;44;21 [Jason]: Yeah. And one of the words that the IRS will also use too is
"continuous", right? This is regular and continuous, it's, it's, got a
life, you know, it's got a cycle.
00;01;53;28 [Jason]: So yeah, absolutely, regular is a big deal. We have folks
that have a rental, one rental, you know, they have a W-2 job, they
have all those things and they're trying to say, I have a home office
to manage my rental. It's just never going to happen. Now, if we
have 10 rentals, 6 rentals, that's all you do is manage your
00;02;11;02 rentals. We have some people that have 3 or 4 VRBOs or Airbnb,
short term rentals and that is all they do.
00;02;18;24 [Rachael]: Time consuming.
00;02;18;29 [Jason]: Their working that stuff 100% so yeah, so that's regular.
How about exclusive Joe? Joseph? What's exclusive?
00;02;24;27 [Joseph]: So, let's say you have an extra room in the bedroom
that's you want to use for your home office and it also can't be your
theater room. So you know, that's gotta be exclusively used for
00;02;33;20 [Jason]: What if you're a videographer and the theater is your
business? I'm teasing you.
00;02;38;03 [Joseph]: Well, you have an argument there. Or, or
00;02;38;24 [Jason]: No, but you can't mix the use, yeah
00;02;41;07 [Joseph]: Right, unless you run a daycare out of your
00;02;42;13 [Jason]: Right.
00;02;42;21 [Joseph]: House as well.
00;02;43;05 [Jason]: Yeah, and daycare has its own special rules and this is not
the podcast for that because
00;02;47;27 [Joseph]: Right.
00;02;48;01 [Jason]: I don't know those rules by a memory. I look them up once
in awhile when I have to, but that's it. But right, those are some of
the shared use stuff can be daycare. Other than that, it's regular
and exclusive with a business purpose. So, tell me some of the
bank, the benefits of having a home office
00;03;05;25 deduction or home office reimbursement.
00;03;08;10 [Rachael]: Reimbursement? Is that part of your mortgage interest?
00;03;13;15 [Jason]: Okay.
00;03;13;23 [Rachael]: Your real estate taxes,
00;03;15;05 [Jason]: Okay.
00;03;15;19 [Rachael]: Utilities.
Bourbon and Business | Business Tax Deductions Part 1
Jason Watson, CPA, sits down with Rachael Weber and Joseph Bassett of WCG Inc (formerly Watson CPA Group) to chat about our favorite part of tax season - tax deductions!
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Jason Watson, CPA, sits down with Bud Rainsberger of RWA Partners in Colorado Springs to continue their discussion about when, why, and how to sell your small business.
Bourbon and Business | Business Financial Planning Part 1
Jason Watson, CPA, sits down with Bud Rainsberger of RWA Partners in Colorado Springs to discuss the importance of having a well-defined plan for your business investments.
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Jason Watson, CPA, and Quentin Leighty, President of First National Bank in Monument, Colorado, discuss the controversial issue of Marijuana Banking.
Bourbon and Business | Business Banking Part 2
Jason Watson, CPA, and Quentin Leighty, President of First National Bank in Monument, Colorado, continue their discussion about how to qualify for small business loans.