2. How to Increase Your Income with the New Tax Law 2018-2025
New deductions that can
make you wealthier—if you know how to implement them
 J.D. from Georgetown University Law Center,
Taught law in San Francisco bay area
Former Assistant Attorney General for New Mexico,
Counsel for the New Mexico Real Estate Commission
Over 14 years presenting tax strategies to self-employed audiences throughout the U.S.

3. 2017 vs. 2018 Federal Income Tax Brackets

4. 2017 vs. 2019 Federal Income tax Brackets

6. Vehicles (Course Section 24!)
IRS Mileage Method 2019
58 cents/mile
Add; Interest for Financing, Parking and Tolls
Actual Expense Method
Gas
Oil
Licensing Fees
Repairs
Tires
Depreciation (buy)
or Rent (lease pmnt)
*BONUS Depreciation
Insurance
Car Washes
Plus - Interest for Financing, Parking and Tolls

7. Updates NEW Depreciation increases 2018 to 2026: 2017
1st year: $3,060
2nd year: $5,100
3rd year: $3,050
4th year thru full depreciation; $1,875
1st year: $10,000
2nd year: $16,000
3rd year: $9,600
4th year thru full depreciation; $5,760
$8,000 BONUS depreciation
added WHEN:
We BUY, not lease
New OR used!
We use the Actual expense method!

8. GVWR 6001+ Use the Actual Expense Method! G.V.W.R. 6001 lbs
Use over 50% for business
First year “bonus depreciation” is….. 100%!
New OR used!

9. 2018 – The Math TOTALS 15.3% 22% 4.9% 42.2% 24% 44.2% 32% 35% 3.8% = +
Self-Employment Tax +
Federal Income Tax
State Income Tax
Added % =
TOTALS
15.3%
22%
4.9%
42.2% 
24%
44.2% 
32%
3.8%
35%
NEW 20% Deduction for Business Income (Basic):
If Single – Qualified with $157,500 or Less
If Married – Qualified with $315,000 or Less
Applicable to Sole Proprietorship (1099), Partnership or S-Corp.

11. “My Accountant takes care of my Taxes.”
Myth:
“My Accountant takes care
of my Taxes.”
….is like saying
“My Dentist takes care of my teeth”.
They DO NOT have Super-Human Powers:
Osmosis? Mindreading? Time-travel?
No, No and No!

12. What’s covered?
All
Qualified
Medical

13. Documentation Required:
Proprietary and
Included with course!
Not Retroactive
Set-up NOW
for 2018

14. Where does this information come from? Open up your brochure...3 4 1 2

15. Confirming the Savings Using the 2018 Business Tax Deductions Reference Book, Pg 62

16. TRAVEL? Do you? Travel throughout the North Americas
International Travel Rules
Cruise Ship rules (IRS allows you to use the ship for transportation!)
YES / NO Flowchart SHOWING you how to make your trips deductible
EVERYTHING footnoted to IRS Codes!

17. We deduct it all, Tax Return Cuts it in half –
2017
Entertainment
Documentation Required:
WHO, What, When, Where, Why
Receipts $75 or more. (Under, write it down)
Includes Dutch Treat
We deduct it all, Tax Return Cuts it in half –
we get 50%

18. Entertainment 2018 - 2026 Make it deductible!
Prospect, referral source, source of future business or future business knowledge, customer, co-worker, even your neighbors… YES!
Deduct; Theater, Sporting events, Golf, Tennis, Skiing, Dinner, Lunch, Movies… YES!
Can we go Dutch Treat and still deduct it? YES!!!

19. 2. We deduct it all, our tax return cuts it in half….
The good news? we can still deduct Client and Prospect food and beverage under the new law!
Here’s how…
1. Documentation Required:
Who, What, When, Where, WHY (Business Purpose)!
Receipts - $75 and above
2. We deduct it all, our tax return cuts it in half….
we get 50%

20. Presentation Expense 100%
NOT Entertainment
Presentation Expense 100%
Documentation Required:
WHO, What, When, Where, Why
Receipts ALWAYS
100%
“Show and tell and try to sell”

21. Home Office NOT a Red Flag
1997 Tax Reform Act allowed more than 20 million tax payers to qualify
Available January 1, 1999
Antiquated and Moot – behind the times! (Outdated
and still causing confusion for those that do not
know current rules)
Commissioner v. Soliman
Supreme Court of the United States
Argued October 5, 1992 / Decided January 12, 1993
Commissioner of Internal Revenue v. Soliman

23. Confirming the Savings Using the 2018 Business Tax Deductions Reference Book, Pg 573

24. Confirming the Savings Using the 2018 Business Tax Deductions Reference Book, Pg 62

25. Home Office Commuting = ZERO business miles
Commuting KILLS vehicle deductions

26. Administrative Office
SOLUTION
Admin Office in Home
Office
Administrative Office
Eliminates Commuting

27. New 20% Deduction Lesser of
IRC Section 199A.
Proprietorships, partnerships, S corporations, and more.
Easy-peasy when taxable income is equal to or less than
New 20% Deduction
$315,000 if married, filing jointly, or
$157,500 if filing as other than married.
With this taxable income and no REIT dividends or publicly traded partnership income, the following is the ONLY calculation that applies to the Section 199A deduction:
Lesser of
20% of qualified business income or
20% of taxable income less net capital gains

28. 199A Deduction Calculator
To find the calculator online, Google “199A Calculator.”

29. Guaranteed! 90-Day Money Back!3 1 2 3 4
Kelly Clark
(415)

31. $397.50
$2,176.00
$1,002.00
Complete &
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