馃攳
How to Claim the Home Office Deduction with an Accountable Reimbursement Plan - YouTube
Channel: unknown
[0]
are you an online entrepreneur who works
[1]
from home did you claim your home office
[3]
deduction
[4]
on your s-corporation tax return last
[6]
year i would check again if i were you
[8]
because in this video i'm going to show
[10]
you what an accountable reimbursement
[11]
plan
[12]
is how you can maximize your tax savings
[14]
through your home office seduction by
[16]
having one in place
[17]
and i'm going to show you how you can
[18]
set one up in less than five minutes
[25]
my name is brian nguyen and i'm a tax
[27]
advisor with clever profits
[29]
welcome to the channel i would go ahead
[30]
and hit that like share
[32]
and subscribe button if you want to
[33]
learn more about how to save money on
[35]
taxes and other finance tips for your
[37]
online business
[38]
the accountable plan is highly
[40]
recommended if you have an s corporation
[42]
and honestly i just see it as a
[43]
requirement that we make sure that every
[45]
single one of our clients has in place
[47]
for their business the reason why an
[49]
accountable reimbursement plan is so
[51]
important is because it allows your
[53]
employees
[54]
in your business to get reimbursements
[56]
from your business
[57]
to the extent that they're paying for
[58]
things out of pocket for the business
[61]
and not have to recognize that into
[63]
their w-2
[64]
taxable wages or their income so i'll
[67]
give you an example
[68]
one really common one is that oftentimes
[69]
employees pay for things out of pocket
[71]
like they'll pay for meals they'll pay
[73]
for travel
[73]
associated with a company and their
[76]
companies will reimburse them
[77]
well with that accountable reimbursement
[79]
plan unfortunately
[81]
that reimbursement now becomes taxable
[82]
so that's why it's very critical for
[84]
pretty much every business to have some
[86]
kind of internal policy document
[88]
that conforms to this this tax
[91]
regulation
[92]
to ensure that it's not going to be
[94]
taxable to the employee to accept
[96]
the reimbursed now this can be used in
[99]
conjunction
[100]
with a home office deduction for an
[102]
online entrepreneur
[103]
who owns their own business who has an s
[105]
corporation and has an exclusive space
[107]
that they use
[108]
just for work that doubles as a personal
[111]
space
[112]
where they live i'll give you an example
[114]
i'm an entrepreneur
[115]
and i use this converted office to do
[119]
pretty much all of my work in my
[120]
business which is an s corporation
[122]
and every single month i show my
[124]
business exactly what it costs for me to
[126]
maintain the second
[127]
office space in effect and my business
[130]
reimburses me for it
[131]
because my business reimburses me for it
[133]
it then gets a deduction
[135]
on its tax return which ultimately
[137]
translates over to me because
[139]
i have a past serenity and i ultimately
[141]
pay taxes on whatever my business
[142]
makes and i don't have to recognize that
[145]
into my w-2
[146]
income that i have as a an officer
[149]
doing work in my business through a w-2
[152]
salary
[152]
and so the key to making that happen is
[156]
to make sure that i actually have an
[157]
accountable reimbursement plan in place
[160]
so that i can get those reimbursements
[161]
for my home office tax-free
[163]
the reason why this makes sense is
[165]
because if you're an online entrepreneur
[166]
you're probably doing most of your work
[168]
remotely
[169]
or a place that you manage and run your
[171]
business from
[172]
just like me and so doesn't it make
[174]
sense that if your business is not
[175]
paying for a separate office space or a
[178]
lease
[178]
that it should be paying you back for
[180]
the portion of your
[181]
personal residence that you're using
[183]
exclusively for work
[185]
i think that makes sense and the irs
[187]
does allow it and it's a legitimate
[189]
business case so your business can get a
[190]
deduction and you don't have to actually
[192]
recognize the income which is phenomenal
[194]
and so what you need to do though is you
[196]
need to have substantiation around
[198]
how much that actual reimbursement
[199]
should be on a monthly basis
[201]
generally speaking you're going to be
[202]
looking at the square footage of your
[205]
space
[205]
in the office as opposed to the total
[208]
square footage in your entire unit so
[209]
for example
[210]
let's say you had a 2 000 square foot
[212]
place and
[214]
500 square feet were relating to just
[216]
your office and the rest of us are
[218]
relating to your personal residence
[220]
well in that case 25 percent of the
[222]
square footage really relates to your
[224]
business and therefore
[225]
your business can pay you back for 25
[228]
of whatever you're paying to maintain
[230]
housing so that includes rent
[232]
utilities could include insurance and
[234]
other related costs
[235]
that you use specifically for your
[237]
personal residence that are now
[238]
allocated to the business
[240]
and now your business gets to claim a
[242]
deduction for it which means that you
[244]
get to reduce your taxable income
[246]
which can translate to thousands in
[248]
actual tax liability saved on your
[250]
return
[251]
and you'd be surprised how often we
[253]
audit returns for clients that come
[254]
through our doors
[256]
and they don't have a home office
[257]
deduction or really any deduction at all
[259]
for rent
[260]
which signals to me that their last
[261]
advisor missed something all right
[263]
so how do you actually get an
[265]
accountable reimbursement plan
[266]
well i'll show you in less than five
[268]
minutes what you're gonna do is you're
[270]
gonna go down to the link below
[272]
in the description and you're gonna
[274]
download my free template that i have
[276]
for pretty much online
[277]
any online business or really any small
[279]
business or business at all
[281]
that conforms to the policy that allows
[283]
you to reimburse your employees
[284]
including yourself
[286]
tax free it's an accountable
[287]
reimbursement plan document
[289]
all you need to do is find and replace
[292]
the business name with your business
[294]
name
[294]
keep in mind because i'm not your tax
[296]
advisor i'm not responsible for anything
[298]
you do with this template but
[300]
it should work out and it's going to
[301]
take you less than a couple minutes to
[302]
set up
[303]
now the actual plan itself is not
[305]
difficult to create but you do need some
[307]
kind of documentation around
[309]
what you're having your business
[310]
reimburse you for so
[312]
sometimes you can do it in the form of
[313]
an invoice or expense reimbursement
[315]
policy there's apps out there like
[317]
expensify but i like to keep it really
[319]
simple
[320]
and we actually use a google sheet for
[321]
most of our clients in a template that
[323]
allows them to plug in their rent
[326]
for every single month their utilities
[328]
for every single month square footage
[330]
across the board so we know exactly what
[331]
percentage is allocable to the
[333]
accountable plan reimbursement and then
[335]
we calculate that number using the
[337]
template and then we make sure that the
[339]
business
[339]
transfers the money from the business
[341]
checking account to their personal
[343]
account
[343]
to pay them back for it and that's
[346]
really all it takes in order to monetize
[347]
this
[348]
amazing deduction which is very commonly
[351]
missed if you liked what you hear and
[354]
you want to take advantage of more tax
[355]
strategies we have so many more videos
[357]
on the channel that are going to be
[358]
coming out explaining how we help our
[361]
clients save
[361]
tons of money and you can check out the
[363]
videos by hitting that like share
[365]
subscribe button and go into the next
[367]
one right here
Most Recent Videos:
You can go back to the homepage right here: Homepage