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Archive for October, 2006

18
Oct

Sandy Botkin 10-18-06 - Entertaining Tax Tips

 
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Below are the Show Highlights, click the more button to continue reading. You may also download the PDF of the highlights at the bottom of the page.

Entertaining Tax Tips

Host: Patrick Allman, President, Strategic Equity
Guest: Sandy Botkin , Founder, Tax Reduction Institute

Knowing the IRS entertainment tax write-off rules can put between $500 and $6,000 in your pocket each year. Although after 1987 congress limited write offs to 50 percent of expenses with some limited exceptions, entertainment deductions can add
up quickly. For instance, 50 percent of all planned meals that include a substantial, clear and specific business discussion are deductible. This is true if you and your spouse go to dinner with another couple or if you and your family go to dinner with another family. The rest of the family is considered keeping your business contact’s family busy. Don’t forget home entertainment for another couple or large groups are both deductible. There is no time limit on the portion of the discussion dedicated to business conversation. You don’t even need a receipt if it is under $75. You just need to write down the details of the business
purpose. Please note, however, dinner with your spouse alone is never deductible, even if you work together and discuss business the entire time.

Other deductible entertainment expenses include:

• Associated entertainment – golf, baseball, football games, concerts– as long as you talk business within the same 24-hour period
• Season tickets for the number of games where you talk business
• Gifts of entertainment – plays, dinner theater, etc.

100 percent deductible items include:

• Business gifts – housewarming, birthday, wedding, Christmas and Hanukah presents with a limit of $25 per-person, per-year
(a husband and wife are considered one person)
• Gifts of any amount to a company without mentioning the name of a person

Not deductible:

• Impromptu conversations with strangers/waiters during a meal
• Dinner gifts where you are not present. The key to making entertainment deductions bulletproof in an audit is to document them in a tax diary. Always write down who, where, why (be specific), when and how much was spent. Accompany that log with
the receipts when the expense is over $75. Just think like a prosecuting attorney marshaling evidence and your life will be less taxing.

Patrick Allman is the President of Strategic Equity, a company dedicated to helping loan officers make the transition to certified
mortgage planners.

Sandy Botkin is a CPA and attorney. He is a former IRS trainer and founder of the Tax Reduction Institute. He is the author of “Lower Your Taxes Big Time” and “Real Estate Tax Secrets of Rich.” This is general tax advice.
Everyone’s situation is different, so take this
information and ask your accountant.

01
Oct

Phil Gerisilo

 
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Phil Gerisilo is a 19-year real estate veteran in Kent, Washington, just south of Seattle. Kent’s population is approximately 85,000, and the average sales price is $370,000. Eighty percent of Phil’s business is repeat and referral.

Phil is also the co-author of “How to Succeed in Real Estate Without Cold Calling”.

ASSISTANTS/TEAM

Phil is the visionary leader and handles all listing presentations. Phil’s wife, two daughters, son, sister and brother-in-law make up the team. Everyone on the team is cross-trained.

SYSTEMS

One of the pillars of the team’s success is a farm of 2500. This area was selected based on turnover and the highest percentage of homes sold annually.

Call capture and free reports are primary methods of new lead generation.

MARKETING

Phil mails 2500 postcards to his farm and clients twice per month. The cards are large and full color so that they stand out. The cards feature a property that they have just sold. On the back is information on the market as well as a number of informational reports that can be requested via an 800 number. The 800 number is a Call Capture line that provides an opportunity for Phil’s team to follow up with the people that have the most interest.

Phil’s database is segmented as follows: Geographic Farm: 2500; Sphere of Influence/Other Agents: 700; Preferred Clients: 250; and AAA Clients: 100.

The “AAA Clients” are those that have multiple transactions with them and are most likely to refer business. Client appreciation events are held for the AAA Clients as well as gifts and incentive programs. One of the most popular activities that the team does for the AAA Clients is a ballgame - in this case, the Seattle Mariners. ·

KEY ELEMENTS OF SUCCESS

Focus - Phil and his team have refocused on connecting with people as their primary focus in their business - as opposed to deals, numbers and income. This focus has really turned around for them in terms of their enjoyment of the business as well as the results. This focus is based on finding out how to help their clients and genuinely determine how to give back to them. Phi1’s experience is that this attracts, rather than repels people. The end result is trust and comfort. Phil’s goal is to call 3 of his past clients per day - not to ask for business but just to connect and find out how they are doing and what has changed in their life. Additionally, Phil schedules one lunch per week with a client.

Resources -The Gerisilo team has a team of professionals (CPAs, Attorneys, Contractors, Landscapers, Lenders etc.) that they can also recommend when the need arises with a client. Phil says, “The more resources I have, the more I can bring to the table.”