Episode 044 - Interview with Accounting Expert Kim Storen PART 2
Accounting! What topic could be more fun than accounting and taxes? Maybe watching grass grow or paint dry? Well, we have a special guest discussing those topics--and more--for two episodes! Believe it or not, she brings life to the subject of taxation!
Kim Storen from Storen Financial is a breath of fresh air, especially after listening to B bloviate for 42 episodes. In PART 1, Kim gave us tips and suggestions to prepare for end-of-year tax items. In PART 2, Kim discusses questions she frequently gets, such as Meal and Entertainment, Leasing vs. Buying, and Home Office Deductions
It's never too late to make changes or find a better plan to save money and make wiser financial decisions. In this timely episode, hear more about how to make better choices to run your business intentionally.
PROGRAMMING NOTE: the YouTube video of this episode includes our favorite Podcast Pup Jack-Jack, a stray cricket on Kim’s headphones, and a special treat at the very end!
SHOW NOTES
- 01:20 – Ep. 44; we brought back Kim Storen. Be sure to listen to last week’s episode. Taxes are Fun!
- 01:55 – Cate: let Kim go on all day. Christian: she only gets 28 more minutes. Take that Cate!
- 02:22 – Song of the Episode: Johnny Cash, “After Taxes”.
- 03:03 – Christian never saw Johnny Cash, but saw his brother Tommy Cash. (Christian note: After the show was recorded, we learned that Tommy Cash is also a real estate agent in Nashville and sold Johnny’s home after Johnny passed away.)
- 04:00 – Lyrics to "After Taxes"…and Kim is visibly shaken.
- 05:02 – Kim Storen: Eric Church fans search the notes below him at the ACM Awards 2020. He did a tribute to Johnny Cash.
- 06:14 – Kim hijacked B’s song of the episode two weeks in a row.
- 06:40 – Kim loves taxes and Eric Church. Was that a snort?
- 07:12 – Kim and B are going to write a book about working with their spouses.
- 08:15 – Tax fact: male’s name goes first on tax returns.
- 09:34 – Kim’s Tax Tips: Mileage, make sure you’re tracking. Use a tracking app. At the very least, write down the mileage on your car at the beginning of the year and then again at the end of the year. IRS wants proof of your miles, not just a record.
- 11:40 – Meals and entertainment: entertainment is not deductible; meals are deductible; cannot take your own lunch as a meal; can buy a meal for someone else; meals are usually 50% deductible unless it is for the office in which case it is 100% deductible.
- 14:00 – Kim just taught B something he didn’t know. How is that possible?
- 14:22 – Writing off a trip: what is the primary purpose of the trip? If it is personal, you can only deduct the part of the trip that is a business. Keep your agenda.
- 15:40 – In 20 years Kim has had two full blown audits, but most of the time now it is just a letter/mail audit.
- 16:40 – B: algorithms, bots, etc. are tracking so many thing now.
- 17:38 – Cate must interrupt us, again, with her Side Note Tangent: Jack-Jack is visiting us, and Cate brought up that we all have work pups. B & Cate have Rey and Mer, and Kim & Greg have Churchie and Tank. (Watch the YouTube video to see pics of our pups). Send us pics of your pups.
- 19:35 – Kim: dogs cannot be a deduction on your taxes unless they are a medical or seeing eye dog.
- 20:08 – Kim notes a study that shows people are happier with a dog.
- 20:33 – “Don’t spend a dollar to save $0.30 in taxes.” Comparing that to Kohl’s Cash. Don’t spend a bunch of to save a small amount of taxes. You are likely better off to keep the money, pay the tax and come out ahead.
- 22:12 – Cate: projections and look at spending intentionally.
- 22:45 – Kim: buying a car is limited by the IRS in what you can deduct. Cannot slap a sticker on the side of the car and claim 100% of the car.
- 23:58 – Christian: difference between lease versus buy. Kim: It depends.
- 25:07 – Leasing equipment such as a copier.
- 25:28 – One last tip from Kim: Office and home, only take a home deduction if you are not provided a space by your employer.
- 27:09 – Christian: one big room, can you still deduct. Kim: yes, because most of your work is still from home. However, if you spend most of your time at the office, you cannot deduct the home office.
- 27:53 – Cate: if they deduct home and office and sell your home, what happens? Kim: might have to recapture depreciation, but the IRS gave everyone a gift. They give you $5 per square foot for a deduction up to 300 square foot of space.
- 29:55 – Kim is leaving us but thank you for dropping your pearls of wisdom on us.
- 30:18 – How can you reach Kim? storenfinancial.com; kim@storenfinancial.com; 317-852-7000.
- 30:50 – Quote of the Episode: “Income, expenses, investing, and taxes are all part of the game of life. Learn how to play that game well and you will succeed financially.” -B. Live Intentionally! Do better for yourself by learning how to play the game better.
- 31:52 – To our listeners in Australia, we love you!
- 33:11 – The happiest puppy in the world!
SHOW LINKS
BETWEEN THE LINES LINKS
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