Marc Brodnax, Owner Registered Tax Preparer & Wealth Manager CORNERSTONE TAX GROUP Marc Brodnax, Owner Registered Tax Preparer & Wealth Manager

HOW MUCH MONEY WOULD YOU HAVE TO MAKE IN ORDER TO LIVE OFF THE INTEREST FOR THE REST OF YOUR LIFE?

$8.2 MILLION

WHAT WE DO Expense Management Reviewing & Paying Bills Maintaining Records Monthly Financial Summary Cash Flow Statement Tax Projection Report Second Career Management CTG prepares you for your “After Career.” You have planted a tree, watched it grow to its highest peak and now it is time to branch out. Here we are more than willing to help you explore and plant more seeds around your starting point as time progresses. Marketing Management Non Profits Social Media Education Speaking Engagements

FINANCIAL CHECKLIST Cornerstone Tax Group Marc Brodnax, Owner @MHBSports (310) 733-3098 FINANCIAL CHECKLIST Separate Your Credit Cards & Accounts Monthly Meeting With An Advisor Set Basic Financial Goals Set Up A Fixed 2 Year Budget Make Yearly Tax Projections

YOUR TEAM OWNER (You) CPA/TAX PREPARER/ENROLLED AGENT REGISTERED INVESTMENT ADVISOR/STOCK BROKER TAX ATTORNEY INSURANCE AGENT

REPORTING TO GOVERNMENT AGENCIES United States Treasury (IRS) Franchise Tax Board (State of CA) City of Los Angeles, Culver City for Business CA Department of Tax and Fee Administration (CDTFA) Employment Development Department (EDD) Los Angeles County Tax Assessor

10 THINGS TO DO AFTER YOU INCORPORATE Issue stock or membership certificates Draft bylaws or operating agreement Designate the company’s management Obtain applicable business licenses Register in additional states (if necessary) Maintain a minute book File amendments (if required) File “Doing Business As” names (if required) Maintain a registered agent Hold annual meetings

INDEPENDENT CONTRACTORS VS EMPLOYEES

CLASSIFICATION: EMPLOYEE Obtains a W-4 Taxes paid by employer (Medicare and Social Security) IRS 1040 All income is taxed worldwide

CLASSIFICATION: INDEPENDENT CONTRACTOR Obtains a W-9 You pay all taxes every quarter for social security and medicare Keep good records of all income and expenses Reporting income Structure (S Corp, LLC, Sole Proprietor) Forms (Schedule C, 1120, 1120s, 1065) Separate business accounts

What Is Considered An Expense? Office Space ($5 per sq.ft or max $1500) Equipment Phone lines Mileage (XeroTax Touch)

BUDGETING Manilla Money Strands Trim Mint

Accountability and Goals Strategic Financial Plan/Budget Savings Account Retirement/Benefits 6mo. to 2 Years Savings

STRATEGIC FINANCIAL PLAN Bottom Up/Top Down Budget Property Taxes Baby Boomers (26%), Gen X (32%), Millennials (18%) 50% of all jobs will be in the gig economy by 2020

RETIREMENT/BENEFITS Tax Advantage Accounts IRA Solo 401k SEP IRA Non Tax Advantage Account Roth IRA Health Insurance Rule of 72 An investor who invests $1,000 at an interest rate of 4% per year, will double their money in approximately 18 years. 72 / 4 = 18

New Tax Laws vs Old Tax Laws Tax Cuts and Jobs Act (2018-2025) Corporate Tax Rate Decreased 35% to 21% Top Individual Tax Rate Decreased 39.6% to 37% 20% Deduction Of Qualified Business Income Allows Full Expensing Of Short Lived Capital Investments For 5 Years Limits The Deductibility Of Net Interest Expense To 30% Of Earning Before Interest, Taxes, Depreciation And Amortization For 4 Years

1040 & SCHEDULE C

ALTERNATIVE MINIMUM TAX

DOMICILE: noun, verb A legal term that does not have the same meaning as residence. Some states (including CA) make a distinction and view them as two separate concepts. For tax purposes, domicile is the place where an individual voluntarily establishes his/her true, fixed, permanent home and principal establishment, and to which place he/she has, whenever absent, the intention of returning. It is the place in which an individual has voluntarily fixed the habitation of self and family, not for a mere special or limited purpose, but with the present intention of making a permanent home, until some unexpected event shall occur to induce an adoption of some other permanent home. (18 Cal. Code Regs. 17014 (c))

OBAMA TAX RETURN

BUSH TAX RETURN

CAPITAL SUFFICIENCY HOW IS YOUR BUSINESS GOING TO SURVIVE IF NO ONE PURCHASES YOUR PRODUCTS OR SERVICES?

QUESTIONS? Twitter: @MHBSports LinkedIn: Marc Brodnax Email: marcbrodnax@yahoo.com QUESTIONS?