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ADVANTAGE CONTENTS

The FAST Advantage

Joeann’s Monthly Message:  Tax Strategies

The SIMPLE LIVING Advantage:  Show Me the MONEY

The TECH Advantage:  Tips and Resources

The DISTINCTION OF THE MONTH: Prosperity vs Wealth  

The HEALTH Advantage: Weight Training

The SKILLS Advantage:   Fossland's Free Forums

THE REAL ESTATE GAMES!

ADVANTAGE THINKING:  

The INSPIRATION Advantage:  Prosperity

The FAST Advantage 

 Dallas Cowboys Coach Landry once said, “"A coach is someone who gets you to do what you don’t want to do, so you can be who you want to be.” 

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Joeann's Message
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Tax Strategies

It’s that time of the year.
 Spring fever is high!
 The flowers are blooming and Uncle Sam wants my money and, perhaps, yours too!)!  

Robin Williams said “Spring is Mother Nature’s way of saying ‘Let’s Party!’, which , of course, is easier to embrace if Uncle Sam has left us some to party with. 

My friends, Bernice & Byron have written an article that could save you money: 

 "Ten Strategies for Paying Less Income Tax"
by Bernice Ross, Ph.D., MCC, and Byron Van Arsdale, MCC 

Feeling overwhelmed by the mountain of receipts from 2001? Before you throw your hands up in dismay, you might want to reframe your thinking. That mountain of receipts can represent thousands of dollars in your pocket. Depending upon your tax bracket and whether or not you must pay state income tax, each dollar you deduct can result in a 15-55 cent return to you. To keep as much of your hard earned cash as possible, cross check your 1040 against the suggestions below.

CAVEAT:  No matter what you deduct, if you do not show the exact business purpose to which it pertains, the IRS can disallow the deduction. Whether it's a phone bill, entertainment expense, or mileage, you must document the specific business purpose to take the deduction. 

1.  You can deduct cash expenses under $25.00 simply by placing them in your appointment book or Palm Pilot. These little expenses can add up to big dollars over the course of the year for most agents. For example, if you pay 50 cents to park at a meter, $3.00 to make copies of keys, or tip the valet or car wash person $2.00, document the expense on the date it occurred by referencing the amount, the specific client to which the expense pertains, and the nature of the expense. 

2.  Auto expense: Many of these are obvious--insurance, gasoline, repairs, license fees, use tax, parking fees and tolls, smog inspections, depreciation, but some are not so obvious. Washes, polish, valet parking, etc. are all deductible based upon the percentage of miles you drove for business. 

CAVEAT: Mileage driven to and from the office is NOT deductible, because the IRS considers it commuting. A smart strategy to obtain the maximum mileage deduction is to do a business related activity such as going to the post office, putting out brochures, or calling on a client as the first order of business each day.  Driving to an appointment is deductible--commuting to the office is not deductible. Also, be sure to document your mileage in writing. 

3. Depreciation: Many agents don't realize they can depreciate not only their car, but their computer, printer, phone system, digital camera, and other large items. Ask your accountant if it makes more sense to "expense" an item this year (take the deduction in full) or to depreciate it. 

4.  Traditional Marketing Expenses (Advertising and Promotion). Everyone remembers the obvious ones--MLS membership, brochures, postage, printing, and other mailing expenses. Did you remember to deduct for your open house refreshments you serve each week?
How about the flowers you brought by for a sick client? 

5. Internet Marketing Expenses--be sure to include expenses for your ISP (AOL, Earthlink, etc.), computer software, maintenance of your web site, as well as any web hosting/design fees you paid. Your digital camera, scanner, and any other costs involved with creating a 360 tour are also deductible as are costs you incurred to set up, maintain, or repair your computer. If you use your computer at home to access the MLS, you can deduct the cost of your ISP and your dedicated phone line/DSL/cable modem based upon the percentage of business use. (Again, you'll have to document the percentage of business use.)

6.  Petty cash: Did you deduct for petty cash items such as pens, pencils, keys, note paper, hammer, tape, stamps, etc.? What about the $5.00 you chipped in at the office for a charitable organization? Remember, the IRS accepts "cash" write-offs up to $25.00 if you have a receipt or note the cash amount in your appointment book by date, amount, and business purpose. 

7. Gifts and Charitable Contributions. The IRS limits your gifts to others to $25.00 per person. A strategy to "give more" is to make a donation in the name of your client to their favorite charity. You could also purchase a home warranty and have that deducted from your commission at the closing. Also, if you volunteered for a charitable organization, check with your CPA to see if you can take a deduction for the time volunteered. 

8.  Business communication: Your telephone, pager, and cell phone are deductible, but if you also use them for personal calls, you must allocate your deduction based upon the percentage of business usage.

9. Home office. This deduction can be an immediate red flag for an audit. You can deduct "home office" expenses such as your phone and computer--anything more than that can trigger an audit, even it's legitimate. (Check with your CPA or tax attorney to determine if this is a smart strategy in your particular case.) 

10.  Professional Development and Education are also major categories. You can deduct not only the cost of attending the event, but the transportation costs, as well as a percentage of your meals and other expenses incurred while traveling. 

Remember, the key is to keep accurate records by noting the client, the date, and purpose on your receipts. Also, always check with your CPA to verify your deductions meet current IRS guidelines. And, if you didn't keep great records in 2001, today's a great day to begin! 

Thanks to Bernice & Byron for letting me reprint their article. They have a great newsletter called RealClues.  To subscribe or get more information about their real estate coaching, visit www.RealEstateCoach.com

Do You Need A Coach?

If you are perfectly happy with your business as it is and you can’t wait to get to the office each day and you have plenty of time and energy to do what the job takes, you don’t need a coach.
If, on the other hand, you want to take your business beyond it’s present scope and don’t quite know how, or if your are feeling burned out and don’t enjoy each day and find yourself stressed out trying to do it all, a coach may be your answer.  

Determining what result YOU want from the coaching is the place to begin. There are many programs and coaches, each offering different services.  So, the clearer you are about what you are looking for, the greater your satisfaction. The coach that works with the top producer in your town (and I’ll bet they do have a coach!), is not necessarily the BEST coach for you. And, it may be training you are looking for, instead of coaching. Anyone can call himself or herself a coach and some people have just changed the name of their training to coaching because it is trendy. Of course, there’s nothing wrong with getting more training, but knowing what you want or need and distinguishing whether it is coaching or training is useful because finding the right solution is sometimes tricky.  

Below is a list of some of the reasons you might want a coach. If you are thinking about hiring one, take a look at this list and determine which, if any, are areas you want to explore and then you can ask the coaches you interview what they can do for you in these areas.

  10 Areas A Coach Can Help

 1.      TO CREATE A BUSINESS AND LIFE PLAN
Do you know not only what you want your production goals are but why? And do they have a relationship to your overall plan for financial independence?
2.      TO BRING WEEKLY FOCUS AND ACCOUNTABILITY
Are your weekly actions and priorities aligned with your plans? Do you monitor where you are on a regular basis so you can make course corrections to get back on track? Do you follow through on the ideas and plans you make?
3.      TO BE ENCOURAGED AND TO BRAINSTORM NEW STRATEGIES
Are you doing things in the same way that you were 5 years ago? Do you know what the “new” consumer wants from you. Do you have the right tools and knowledge to deliver it?
4.      TO FOCUS ON USING YOUR STRENGTHS MORE EFFECTIVELY
Do you try to figure out what you don’t do well and struggle getting better at it or do you know yourself and what you are positively brilliant at and leverage that skill? Have you developed a business to attract the people who need the skill you are best at? For instance, if negotiating and bottom line results are something you pride yourself in, creating a business to work with investors, or others who are making practical, rather than emotional buys would be a good fit.
5.      TO HELP YOU ASSESS WHICH LET ACTIVITIES AREN’T THE HIGHEST AND BEST USE OF YOUR TIME
Do you hold onto to all activities because no one else can do them as well as you? Do you know what an hour of your time is worth? Have you identified companies and people to outsource to who’d charge less than what an hour of your time is worth?
6.      TO SUPPORT YOU IN FINDING THE RIGHT WAY OF DOING YOUR WORK SO YOU ALSO HAVE A LIFE
Do you work to live or live to work? Do you regularly take time for yourself, your family and to rejuvenate? Do you take vacation time? Do you set boundaries about what times you can be reached and are available?
7.      TO BRAINSTORM THE “PERFECT” NICHES
Are you trying to be available for any business that shows up or have you narrowed your focus to areas where you can be the expert? Are you a generalist or a specialist? What area or type property or client do you know better (or enjoy more) than anyone else?
8.      TO HELP STRENGTHEN YOUR “BRAND” BY CLARIFYING YOUR UNIQUE GIFTS
Is your marketing designed to promote a memorable impression that positions you as the “guru” of real estate in one or more ways. Have you coordinated your materials and strategies to strengthen your brand or is it hard to distinguish you from everyone else?
9.      TO LISTEN AND LET YOU KNOW WHEN YOU ARE OFF COURSE
Are you ready to try some new, even, off-the-wall way of doing things? Can you give up what has worked in the past for new ways of doing things? Do you have objective people who give you honest feedback? Do you have ideas that you need some outside perspective on?
10.  TO PROVIDE RESOURCES TO HELP YOU ATTAIN YOUR GOALS FASTER AND MORE EASILY
Are you well connected to knowing where to find the people and tools that will allow you to implement the strategies you are committed to? 

This list is a place to begin in your thinking about where the gaps are in your business and your life that might be helped by a coach. As Dallas Cowboys Coach Landry once said, “"A coach is someone who gets you to do what you don’t want to do, so you can be who you want to be.”

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       The SIMPLE LIVING  Advantage:

      Show Me the MONEY

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"The more you praise and celebrate your life, the 
more there is in life to celebrate." Oprah Winfrey  

"A man is a success if he gets up in the morning and does what he wants to do."- Bob Dylan