TAX TIPS FOR YOUR XanGo/Glimpse BUSINESS
If you have chosen to join us in building your own business with this wonderful XanGo product, NOW is the time to begin keeping the records and receipts for which the IRS will be looking to substantiate your deductions. The following are a few suggestions to get you started in the right direction. 1.
Purchase a diary type calendar to keep in your car. Write down the current mileage on your car the day you signed the papers to join, or as soon thereafter as you can. The IRS will require that notation to determine the ratio of personal to business miles for depreciation. Thereafter, keep note of all beginning and ending odometer readings for business related trips (i.e.: product delivery, meetings, business errands, etc.). A notation of the name of the destination and intended business for that trip will suffice. Purchase a day-planner, diary, notebook or tax organizer to keep daily entries of business activities. The IRS requires entries be made within a reasonable amount of time from the actual occurrence. So, at the time of contact or end of the day you can note who you contacted and what tools or product you gave them. The IRS will be looking at these entries and the resulting receipts to prove that this is a business rather than a hobby. Accurate entries in the diary will also help you with follow-up. Keep all receipts. Note on the back of the receipt the “who, what, when, where” and business purpose of its purchase (i.e.: office supplies, postage, CD’s, food for meetings, etc.) You can tuck those receipts into your day-planner and organize them later, but it is a good idea to write down the purpose on the receipt as soon as possible. A few extra seconds at the time of purchase may help to secure the deduction, so be diligent. Your back office keeps receipts of all purchases from the XanGo Corporation, whether for product or tools. You can print them concurrently or at the end of the month or year. All tools are deductible so print or ask for receipts when ordering. Purchase a simple guest book to have all who come to your home for meetings, training sessions or product demos sign the register. This is very good documentation that there was an event and who attended.
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All of the above information is advisory and educational. It may not apply to you and your circumstances in any given year. Sound Concepts (www.mangosteentools.com)has a few resources that are recommended: the "More Money Less Tax" CD by Ron Mueller, MBA, PH.D. and the booklet "It's How Much You Keep That Counts, Not How Much You Make" by the same author. A good book to have would be Lower Your Taxes – Big Time! by Sandy Botkin, CPA, Esq. (ISBN# 0-07-140807-X). It can be ordered from your local bookseller or on Amazon.com. For further documentation suggestions of deductions for home offices, car expenses, travel and entertainment or equipment purchases, etc. please consult a qualified Tax Professional.