エピソード
-
Send us a Text Message.
Ever wondered if you can retroactively claim depreciation on a rental property or how to effectively structure multiple business entities for tax benefits?
In this episode, Mike answers various listener questions related to tax strategies for small business owners. He covers topics including retroactive depreciation for rental properties, structuring multiple business entities, handling business-related vehicles, quarterly estimated tax payments, charitable contributions, hiring spouses, and the benefits of S corporations. He also provides detailed advice, including potential pitfalls and alternative strategies to optimize tax savings and compliance.
[00:00 - 05:33] Retroactive Depreciation and Structuring Multiple Businesses
Katy asks about claiming depreciation on a rental property retroactively.Jeff inquires about setting up a new division within an existing business.[05:33 - 10:11] Business Vehicles, Quarterly Estimated Tax Payments, and Education Expenses
Julia asks about transferring a personal vehicle to a business.Gigi questions whether quarterly estimated tax payments need to be equal.Curtis asks about deducting tuition, books, and commuting costs for his daughter.[10:11 - 16:19] Charitable Contributions, Hiring a Spouse, and COGS
Tony inquires about the deductibility of charitable contributions.Scott asks about hiring his spouse for clerical work in his financial advisory business.Laurie asks about handling tax deductions for unsold inventory.[16:20 - 21:16] Payroll Taxes for Spouses and S Corporation vs. Sole Proprietorship
Jasper asks about the benefits of hiring a spouse who works as a real estate professional.Angie and an anonymous Facebook group member ask about the benefits of filing as an S corporation.[21:16 - 25:15] Closing Remarks
Direct Quotes:
"The problem with charitable contributions is that they're an itemized deduction now, and a lot of people no longer take itemized deductions because the standard deduction is much higher." - Mike Jesowshek, CPA
"99 percent of the time, the S corporation plays out as a better option if you're making $50,000 or more per year." - Mike Jesowshek, CPA
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
-
Send us a Text Message.
Are you maximizing your tax savings with the QBI deduction?
In this episode, Mike delves into the intricacies of the Qualified Business Income (QBI) deduction, also known as the Section 199A deduction, which was part of the Tax Cuts and Jobs Act. He explains the basic rules and income thresholds, discusses which types of income qualify, and provides details on how to calculate the deduction. Additionally, he addresses the expiration of the QBI deduction after 2025 and clarifies that the deduction is taken on personal tax returns, not business returns.
Discover the key rules and strategies to ensure you're not leaving money on the table by tuning in!
[00:00 - 05:21] Introduction to QBI Deduction
Mike gives an overview of the QBI deduction and its origin in the Tax Cuts and Jobs Act.General rule: Deduct up to 20% of qualified business income.Types of businesses that qualify: sole proprietorships, LLCs, S corporations, and partnerships.[05:22 - 10:10] Non-Qualifying Income and Income Thresholds
Mike explains the income types that do not qualify for QBI: investment income, wage income, and income from C corporations.Income thresholds for 2024: $191,950 for singles and $383,900 for married couples.Calculation changes for those above income thresholds.[10:11 - 15:00] Specified Service Trade or Business (SSTB)
Mike defines SSTBs and gives examples such as healthcare, law, financial services, athletics, performing arts, accountants, and consultants.[15:01 - 20:20] Calculation Examples
Mike shares step-by-step examples of calculating the QBI deduction below and above income thresholds.What is the Impact of W-2 wages and qualified property on the deduction?[20:21 - 23:03] Conclusion and Resources
The QBI deduction is taken on personal tax returns.The expiration of the QBI deduction is after 2025 unless extended by Congress.Direct Quotes:
"If you have sole proprietorship income, LLC income, S corporation income, partnership income, those are all the types of income that would qualify for the QBI deduction." - Mike Jesowshek, CPA
"The QBI deduction is taken on your tax return, not your business tax return."- Mike Jesowshek, CPA
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
-
エピソードを見逃しましたか？
-
Send us a Text Message.
Have you ever wondered if your business can deduct the cost of an on-site gym?
In this episode, Mike focuses on the tax deductibility of gym memberships and on-premises athletic facilities for small businesses. He clarifies that personal gym memberships are not deductible, with rare exceptions for fitness instructors. However, gyms or athletic facilities located on business premises can be deductible if they primarily serve rank-and-file employees, not owners or highly compensated employees. He also provides detailed guidelines and examples to help business owners understand and comply with IRS rules for these deductions.
Discover the rules and exceptions by tuning in!
[00:00 - 05:10] Gym Membership Deductions and On-Premises Athletic Facilities
Mike discusses the non-deductibility of personal gym memberships.It is a rare exception for fitness instructors using gyms as their business location.To qualify to be deductible, facilities must primarily serve rank-and-file employees.Highly compensated employees are employees who earn $155,000 or more in 2024.[05:10 - 11:30] Examples and Case Studies
Example 1: Gym usage by owners and highly compensated employees vs. rank-and-file employees.Example 2: Single owner and one rank-and-file employee using the gym.Example 3: Owner and family members using the gym exclusively.Mike shares the importance of using a sign-in sheet or key card system for tracking gym usage.[11:30 - 15:45] Conclusion and Additional Resources
Direct Quote:
"No business allowable business deduction for personal expense, which would be a gym membership, but there are some rare circumstances on where a gym membership might be acceptable." - Mike Jesowshek, CPA
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
-
Send us a Text Message.
Ever wondered how to save on taxes with your business meal expenses?
In this episode, Mike Jesowshek discusses the ins and outs of meal expense deductions for small business owners. He explains how these deductions can turn after-tax spending into pre-tax spending and outlines the criteria for deductibility. Mike emphasizes the importance of detailed record-keeping and highlights various scenarios where meal expenses can be deducted. He also touches on the differentiation between meal and entertainment expenses and mentions strategies to maximize deductions while cautioning against excessive claims that could raise red flags with the IRS.
Discover practical tips by tuning in!
[00:00 - 03:38] Introduction and Basics of Meal Deductions
Mike Jesowshek discusses basic IRS rules: food and beverage costs must be ordinary, necessary, and business-related to be deductible.Mike explains pre-tax spending versus after-tax spending.It is possible to convert a family dinner into a business expense by making it a boardmeeting.
[03:39 - 09:08] Types of Deductible Meal Expenses
Dining with others (clients, staff, vendors) is 50% deductible.Solo meals when traveling for business are also 50% deductible.Meals provided at company events or marketing presentations are 100% deductible.Company parties are 100% deductible if the majority of attendees are non-tainted employees.Entertainment expenses are not deductible.Meals associated with entertainment, like a baseball game, are 50% deductible if separated on the invoice.[09:09 - 13:31] Detailed Record-Keeping, Strategies, and Pitfalls
Mike shares the importance of writing details directly on receipts (who, what, where, when, why).He gives a warning against excessive meal expense claims to avoid IRS red flags.[13:32 - 17:02] Recap and Additional Resources
Direct Quotes:
"Meals are a great opportunity to turn after-tax spending into pre-tax spending." - Mike Jesowshek
"Keep detailed records. Write directly on the receipt who you met with, the purpose, and snap a photo for your files." - Mike Jesowshek
"Don't get greedy. Make sure you're smart with it. The IRS allowed us to move after-tax spending into pre-tax spending." - Mike Jesowshek
"Even though you might be having lunch with someone you consider non-business related, if you're talking business, you can often tie that to a business purpose." - Mike Jesowshek
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
-
Send us a Text Message.
Have you ever wondered how to turn your everyday expenses into legitimate business deductions?
Mike Jesowshek discusses strategies for maximizing small business tax deductions, emphasizing the importance of both obvious and non-obvious deductions. He explains that any expense, whether ordinary or necessary for the business, qualifies as a deductible. Mike emphasizes proper documentation and legal compliance to ensure these deductions are valid. He also contrasts pre-tax and after-tax spending, showing how business owners can leverage pre-tax expenses to reduce taxable income. The episode includes practical tips on turning personal expenses into business deductions and stresses the importance of keeping separate business and personal financial accounts to avoid commingling.
Tune into this episode to uncover the strategies that can save your business thousands in taxes each year!
[00:00 - 04:54] Introduction and Basic Deduction Concepts
Mike Jesowshek introduces the topic of maximizing tax deductions for small businesses.He explains basic deductible expenses like advertising and software purchases.He emphasizes the correct implementation and documentation to keep deductions legal.[04:55 - 09:33] Maximizing Deductions and Real-World Applications
Mike talks about converting personal expenses to business deductions.Pre-tax versus after-tax spending and its impact on taxes.Mike shares real-life scenarios of converting personal expenses during COVID-19.It is important to keep receipts and detailed documentation for all business expenses.[09:34 - 16:45] Effective Documentation and Banking Practices
Avoid commingling of funds and separate business accounts.Mike outlines strategies for documenting meals and travels as business expenses.Mike discusses the use of accountable plans to handle business expenses paid personally.He emphasizes the importance of reimbursements to ensure proper tax records and compliance.[16:46 - 24:19] Exploring Common Deductions and Episode Wrap-Up
Mike encourages listeners to review the IRS guidelines to understand what qualifies as a deductible expense.He shares strategies for integrating personal activities with business purposes to optimize tax deductions.Direct Quotes:
"As a business owner, pre-tax spending allows you to reduce taxable income before it even reaches your pocket." - Mike Jesowshek
"Maximizing deductions isn't just about spending more; it's about spending smarter." - Mike Jesowshek
Resources Mentioned:
Free guide on maximizing deductions available at: www.TaxSavingsPodcast.com/deductions______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/
-
Send us a Text Message.
Are you leveraging the latest tax credits to provide the best retirement plans for your employees?
Hosts Mike Jesowshek and guest Matt Ruttenberg discuss retirement plan options for businesses with employees. The conversation highlights various types of retirement plans like SEP IRAs, SIMPLE IRAs, Safe Harbor 401(k)s, and traditional 401(k)s. They explore the benefits of these plans, particularly in light of recent tax credits and laws that make setting up these plans more advantageous. The episode emphasizes the importance of understanding one's business needs and goals to choose the right plan, stressing the consultative approach to retirement planning.
Discover how simple adjustments to your retirement planning could save you thousands in taxes and benefit your entire team by tuning in!
[00:00 - 06:15] Overview of Retirement Plan Options
Mike introduces the topic of retirement plans for businesses with employees.He encourages listeners to refer to previous episodes for foundational knowledge.Matt details various retirement plans available, including SIMPLE and SEP IRAs, Safe Harbor, and traditional 401(k) plans.[06:15 - 14:49] Deep Dive into Plan Features and Selection
Matt explains how businesses can select appropriate plans based on their priorities and business goals.They discuss the role of tax credits in offsetting the costs of starting retirement plans.[14:49 - 23:01] Final Thoughts and Listener Q&A
Matt and Mike address common misconceptions about the complexity and cost of setting up retirement plans.They conclude with advice on consulting professionals to tailor retirement plans to specific business needs.Direct Quotes:
"The vast amount of retirement plan options available should encourage every business owner to consider what's best for their situation." - Matt Ruttenberg
"Don't be afraid to reach out for help, as the right plan can significantly impact your business's and employees' futures." - Matt Ruttenberg
Connect with Matt Ruttenberg!
LinkedIn: https://www.linkedin.com/in/mattruttenberg/
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
-
Send us a Text Message.
Are you a solo entrepreneur puzzled by the myriad of retirement planning options?
Mike Jesowshek welcomes back Matt Ruttenberg to discuss retirement plan options for solo entrepreneurs without employees. They highlight various plans like IRAs, SIMPLE IRAs, SEP IRAs, and solo 401(k)s, emphasizing the importance of starting with the desired savings amount to determine the most suitable plan. The episode covers the contribution limits, the benefits of each plan type, and the financial implications of choosing one plan over another, particularly in terms of tax deductions and maximizing retirement savings.
Discover how choosing the right plan can maximize your savings and secure your financial future by tuning in!
[00:00 - 05:48] Exploring Basic Retirement Plan Options, SEP IRAs, and Solo 401(k)s
Mike introduces the topic of retirement plans for solo entrepreneurs.Matt discusses simple retirement options like individual IRAs and SIMPLE IRAs, highlighting their benefits and contribution limits.He elaborates on the higher contribution limits of SEP IRAs and the advantages of solo 401(k)s, including their structure and potential for higher savings.[05:48 - 15:22] Comparison of SEP IRA and Solo 401(k) Contributions and Decision-Making in Retirement Planning
Matt and Mike share a detailed explanation of how contribution limits are calculated based on business type and income.They discuss the extra benefits of solo 401(k)s, such as catch-up contributions for those over 50.Choosing the right retirement plan based on the amount one wants to save simplifies the decision-making process.[15:22 - 20:05] Closing and Resource Mention
Direct Quote:
"So you might have a couple hundred dollars of fees, but you are netting a substantial amount more, going into that solo than you are with the SEP IRA." - Matt Ruttenberg
Connect with Matt Ruttenberg!
LinkedIn: https://www.linkedin.com/in/mattruttenberg/
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
-
Send us a Text Message.
Are you a small business owner curious about the financial benefits of establishing a retirement plan for your company?
In this episode, Mike Jeshowshek and guest Matt Ruttenberg discuss the substantial tax credits and key due dates associated with setting up retirement plans for small businesses, introduced by Secure 2.0. They delve into specific credits available, such as the startup credit and the auto-enrollment credit, and outline who qualifies for these benefits. Matt provides a detailed explanation of how businesses can maximize these credits, the importance of not missing due dates, and the strategic advantage of starting retirement plans early. They also emphasize the significant tax savings and benefits for small business owners and their employees.
[00:00 - 05:51] Introduction and Overview of the Series
[05:52 - 12:04] Discussing Tax Credits for Retirement Plans
Matt explains the startup and auto-enrollment credits under Secure 2.0.He gives examples of how businesses can utilize these credits.[12:05 - 18:44] Qualification Criteria and Case Studies
Matt provided a detailed discussion on who qualifies for the tax credits and a case study illustrating potential savings.[18:45 - 22:24] Important Due Dates for Implementing Plans
Matt outlines critical due dates for various retirement plans.What is the importance of early planning and meeting deadlines to maximize benefits?Direct Quote:
"Don't wait until September 15th... It takes roughly 45 to 60 days to implement these plans... So let's start having these conversations and just start looking into it." - Matt Ruttenberg
Connect with Matt Ruttenberg!
LinkedIn: https://www.linkedin.com/in/mattruttenberg/
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
-
Send us a Text Message.
Have you ever wondered if you could hire your older child to watch your younger one and claim it as a business expense? Or are you maximizing the benefits of a Health Savings Account to its fullest potential?
In this Q&A episode of the podcast, host Mike Jesowshek answers a series of listener-submitted questions covering a wide range of topics pertinent to small business owners, such as tax deductions, business expenses, payroll management, and tax strategies. Mike provides detailed insights on various scenarios, such as employing children, maximizing HSA contributions, and the proper way to handle business travel deductions. He also discusses the benefits of using payroll software for S Corporations and outlines strategies for setting reasonable salaries within an S Corporation framework. Additionally, the episode includes practical advice on managing business deductions for vehicle expenses and hiring offshore freelancers.
[00:00 - 00:59] Introduction and Webinar Announcement
[00:53 - 04:11] Hiring Family Members and Maximizing HSA Contributions
Mike discusses the non-deductibility of hiring children for childcare within most small business contexts.Health Savings Accounts (HSAs) are tax-advantaged tools, like "retirement plans on steroids."[04:11 - 09:42] Business Purchases, Tax Implications, and Renting Personal Equipment to Your Business
Mike breaks down the financial aspects of purchasing a business, focusing on asset depreciation and the treatment of seller financing.Correctly account for personal equipment used for business to ensure tax efficiency.[09:42 - 15:31] Using Payroll Software for S Corporations and other Tax Topics
Using payroll software to streamline payroll processes can avoid common mistakes.Providing comprehensive answers to specific questions helps clarify complex tax situations.[15:31 - 23:09] Benefits of Payroll Software for S Corps and Correct Payroll Handling
What are the repercussions of not managing payroll properly in a small business setting?Effective payroll management prevents penalties and ensures financial stability.[23:09 - 25:44] Travel Deductions for Business Trips
Mike provides guidance on how to document and justify travel expenses as ordinary and necessary for business purposes.Detailed documentation and understanding of IRS guidelines can make travel expenses deductible.[25:44 - 26:49] Closing Remarks and Additional Resources
Mike concludes with additional resources, a call for questions for future episodes, and a reminder of the upcoming webinar.Direct Quote:
"Think of an HSA almost as a retirement plan on steroids." - Mike Jesowshek, CPA
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
-
Send us a Text Message.
Have you ever wondered how to structure your multiple business ventures efficiently while minimizing your tax burden?
Mike Jesowshek delves into the complexities of business structuring, particularly for individuals owning multiple businesses or in partnership. He emphasizes the utility of S Corporations in reducing self-employment taxes and the importance of establishing a parent S Corporation to streamline business operations, financial management, and tax filing. Mike advocates for separate bookkeeping for each entity, despite their consolidation under the parent S Corp, to maintain clarity in financial and legal aspects.
[00:00 - 04:20] Introduction to Business Structuring and Exploring S Corporation Complexities
Mike Jesowshek discusses the importance of structuring for business owners with multiple ventures or partnerships. He introduces the concept of S Corporations and their benefits.Mike elaborates on the complexities and requirements of maintaining S Corporations, like payroll and tax filings.[04:20 - 07:03] Structuring for Operational Efficiency
The conversation shifts to operational structuring, emphasizing separate bookkeeping for legal and financial clarity.Mike stresses the importance of having a singular parent S Corporation owning other businesses.[07:03 - 11:32] Tax Considerations and Partnership Structures
What are the tax implications and structuring options for partnerships?Mike discusses different scenarios where S Corporations can benefit or complicate partnership arrangements.[11:32 - 20:09] Practical Tips and Conclusion
Mike shares his concluding thoughts on business structuring with a focus on legal consultation and tax efficiency.He wraps up by encouraging listeners to plan their business structure mindfully and consult professionals.Direct Quotes:
"When we talk about S Corporations, obviously the goal is to minimize self-employment taxes, but S Corps comes with some complexities as well." - Mike Jesowshek, CPA
"We want to have one company that we're actively participating in running through with all of our income before touching us. And we want that company to be in most cases, an S corporation." - Mike Jesowshek, CPA
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
-
Send us a Text Message.
Are you perplexed by estimated taxes and worried about potential penalties? Discover how to navigate the U.S. tax system's pay-as-you-go approach and strategically plan your payments to stay on top of your tax obligations!
In this episode, Mike Jesowshek discusses the importance of understanding and paying estimated taxes in the U.S., emphasizing the "pay as you go" system. He explains the concept of estimated taxes, key due dates for each quarter, and the significance of making timely payments to avoid penalties and interest. Mike introduces the "safe harbor" rule, which helps taxpayers avoid penalties if they pay a certain percentage of their previous year's tax or their current year's expected tax liability.
[00:00 - 01:21] Introduction to Estimated Taxes
Mike Jesowshek introduces the topic of estimated taxes, explaining the pay-as-you-go system and upcoming deadlines.[01:21 - 02:45] The Mechanics of Withholding
Mike discusses how withholding works for W-2 employees and the responsibilities of business owners for making tax payments.[02:45 - 04:32] Year-End Reconciliation and Tax Refunds
What is year-end tax reconciliation and what are the misconceptions about tax refunds?[04:32 - 06:28] Estimated Tax Due Dates and Payment
Mike clarifies the quarterly tax payment due dates and the reasoning behind them.[06:28 - 10:50] Safe Harbor Rule and Calculating Estimated Taxes
Mike talks about the safe harbor rule, how to calculate estimated taxes and the differences based on adjusted gross income.[10:50 - 17:06] Actual Method and Recap
What is the actual method for calculating estimated taxes and the importance of planning for fluctuating business income?Direct Quotes:
"A refund doesn't mean you saved money on taxes; it's just saying you paid too much in taxes throughout the year." - Mike Jesowshek, CPA
"Estimated taxes are the way that business owners can make payments against that future tax bill as they're earning money." - Mike Jesowshek, CPA
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
-
Send us a Text Message.
We’re thrilled to invite you to our complimentary webinar, “Slash Your 2024 Taxes: Essential Strategies for Small Business Owners.” Join us for a session packed with valuable insights to minimize your tax bill.
Maximize Deductions: Identify and claim all the deductions you’re entitled to.Strategic Tax Planning: Structure your finances to optimize tax benefits.Experience Top Tax Strategies: Learn about the incentives the IRS gives small business owners so you can implement them. Interactive Q&A: Get answers from tax experts to your specific questions.
Topic: Slash Your 2024 Taxes: Essential Strategies for Small Business Owners
Date: Wednesday April 24, 2024
Time: 2pm EST
Sign-Up: https://www.taxsavingspodcast.com/slashtaxes
In this webinar, you’ll learn how to:This is a must-attend event for any business owner eager to keep more of their hard-earned money. Register now for free and ensure your spot in this transformative session!
As always, our goal is to ensure you pay the least amount in taxes as legally possible!
Sign-Up: https://www.taxsavingspodcast.com/slashtaxes -
Send us a Text Message.
Are you maximizing the potential of your real estate investments through 1031 exchanges and Opportunity Zones?
In this podcast, Mike Jesowshek and guest Michael Scherer delve into the intricacies of 1031 exchanges, focusing on various replacement property options, including Delaware Statutory Trusts (DSTs) and Qualified Opportunity Zones. They discuss the advantages of passive investment through DSTs, the strategic importance of planning and consulting with tax advisors, and the potential tax deferral benefits of investing in Opportunity Zones. The conversation emphasizes the need for investors to align their investment choices with their financial goals and the importance of thorough planning.
[00:00 - 04:37] Replacement Property Options and Delaware Statutory Trusts (DSTs) in 1031 Exchanges
Mike Jesowshek introduces the topic and welcomes back expert Michael Scherer to discuss 1031 exchange replacement properties and Opportunity Zones.Michael explains the concept of Delaware Statutory Trusts as a passive investment option for 1031 exchanges.[04:38 - 06:17] Direct Real Estate Investment vs. Passive DST Investment
Michael compares the differences between active real estate investments and passive DST investments.What are the investor involvement and management responsibilities in different types of investments?[06:18 - 12:59] Strategies for Maximizing Tax Deferral and Qualified Opportunity Zones as an Investment Avenue
Exploring methods for achieving full tax deferral by combining different investment strategies, like DSTs and direct property purchases.Michael highlights the Importance of strategic planning and advisory collaboration.[12:59 - 19:06] Navigating the Complexity of 1031 Exchanges and Investment Options
How to approach 1031 exchanges, including the importance of selecting the right replacement properties?Michael explains the concept of Qualified Opportunity Zones, their benefits, and the tax implications involved.Opportunity Zones can serve as a fallback for failed 1031 exchanges or as a strategic choice for deferring taxes.[19:07 - 22:57] The Importance of Planning and Expert Advice
Michael emphasizes the value of expert advice and the need for early planning in the investment process.Direct Quotes:
"Understanding the investor's goals and objectives and working with their tax advisor is critical." - Michael Scherer
"It all comes down to planning and understanding what your objectives are." - Michael Scherer
Connect with Michael!
LinkedIn: https://www.linkedin.com/in/michael-scherer-caia-8147504/
Email: [email protected]
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
-
Send us a Text Message.
Are you maximizing your real estate investment potential through tax-deferred strategies?
Mike Jesowshek and Michael Scherer delve into the intricacies of 1031 exchanges. They explain its purpose, benefits, and the critical role of proper planning and advice from tax advisors. They emphasize the necessity of involving a qualified intermediary and the potential financial advantages, including tax deferral and strategic reinvestment, to maximize wealth building in real estate investment.
[00:00 - 04:52] 1031 Exchanges and its Planning and Prerequisites
Mike Jesowshek introduces the topic and guest Michael Scherer from RCX Capital Group.They discuss the significance of 1031 exchanges in real estate tax strategy.Key aspects of initiating a 1031 exchange including the role of tax advisors and ownership structure, are discussed.[04:53 -12:22] 1031 Exchange Process, Timelines, and Exploring Replacement Property Options
Michael explains the strict timelines and procedural steps involved in a 1031 exchange and the importance of investing in like-kind properties for tax deferral. He explores like-kind exchange requirements and potential replacement properties.[12:22 - 16:22] Liquidity and Investment Goals in 1031 Exchanges
How does the liquidity aspect of investments affect 1031 exchange decisions?Investment goals and timelines should align with 1031 exchange strategies.[16:22 - 20:04] Final Steps and the Role of RCX Capital Group in 1031 Exchange
Michael gives an overview of the final steps in the 1031 exchange process, focusing on replacement property identification and closing within set deadlines.He shares the importance of understanding and planning for the financial and legal intricacies of the exchange process.[20:05 - 24:23] Common Mistakes and Wrap-Up
Michael outlines common mistakes in 1031 exchanges, emphasizing the need for early planning and professional guidance.Final thoughts on the importance of understanding 1031 exchanges as part of a comprehensive real estate investment strategy.Direct Quotes:
"1031 exchange is an exceptional tool for wealth building, but something that you need to plan around." - Michael Scherer
"Proper planning is essential. Talk through your options, understand your goals and objectives." - Michael Scherer
"One of the most amazing wealth-building tools is section 1031." - Michael Scherer
Connect with Michael!
LinkedIn: https://www.linkedin.com/in/michael-scherer-caia-8147504/
Email: [email protected]
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com
-
Send us a Text Message.
Ever wondered how you could significantly reduce your taxable income from real estate investments in just one year?
In this episode, Mike Jesowshek introduces Gabriel Florentino from Engineered Tax Services to discuss cost segregation studies, a tax strategy for real estate investors aiming to accelerate depreciation deductions. Gabriel explains the concept and benefits of cost segregation, emphasizing its significant impact on reducing taxable income by identifying and reclassifying property components to shorter depreciable lives. The discussion also covers the importance of understanding accounting terms, the difference between cost segregation and traditional depreciation methods, and the added advantage of bonus depreciation introduced in 2017, which allows for even greater tax savings in the early years of property ownership.
[00:00 - 08:37] Cost Segregation Studies
Mike introduces Gabriel Florentino to discuss how cost segregation can be a key tax planning strategy for real estate investments.Cost segregation allows for accelerated depreciation, offering significant tax benefits.Gabriel explains cost segregation as a method to write off 25-30% of a real estate asset's purchase price in the first year.[08:38 - 14:36] The Impact of Bonus Depreciation
Bonus depreciation, starting in 2017, boosts the benefits of cost segregation by allowing immediate depreciation of certain assets.Gabriel highlights the significant tax savings achievable, even as bonus depreciation percentages change over time.[14:37 - 19:52] Practical Examples and Cost Study Analysis
Gabriel provides examples demonstrating the financial benefits of cost segregation and addresses the costs associated with conducting a study.Insights into the factors affecting the cost of a cost segregation study, including property type and location.[19:53 - 22:08] Conclusion and Final Thoughts
Emphasis on the value of cost segregation for both active and passive real estate investors.Gabriel mentions the complimentary benefit analysis offered to evaluate the potential benefits of conducting a cost segregation study.Direct Quotes:
"Even if it's sunsetting, there is still a huge benefit of doing a cost seg study on a property." - Gabriel Florentino
"Cost segregation study is still a strong tool because you're getting the real value of depreciation for a lot of components inside a property." - Gabriel Florentino
Connect with Gabriel!
Email: [email protected]
Website: https://engineeredtaxservices.com
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
-
Send us a Text Message.
Curious about how real estate can help you grow your wealth and save on taxes?
In this episode, Mike Jesowshek discusses how real estate can serve as a tool for both wealth-building and tax savings. He emphasizes the concept of depreciation, whereby the cost of a rental property can be deducted over time, and explains how this, along with other operating expenses, can offset rental income. He also delves into strategies for utilizing passive losses to offset ordinary income, such as qualifying as an active real estate investor or a real estate professional. Additionally, he touches on the "short-term rental loophole" and the importance of considering exit strategies when selling real estate investments.
[00:00 - 05:21] Introduction and Overview of Real Estate Tax Planning
Real estate serves as a powerful tool for both wealth-building and tax savings.Depreciation allows the gradual deduction of the purchase price of a rental property over time.Operating expenses, including utilities and real estate taxes, can also offset rental income.An active real estate investor status allows for a maximum deduction of $25,000 to offset ordinary income.[04:00 - 13:41] Utilizing Passive Losses and Short-Term Rental Loophole
Passive losses from rental properties cannot directly offset ordinary income but can be carried forward.The short-term rental loophole allows losses from short-term rentals to offset ordinary income under certain conditions.[13:41 - 17:09] Considerations for Business Owners in Real Estate
Business income in real estate is considered active income and requires different tax strategies.An S Corporation can be beneficial for business owners earning over a certain threshold.[17:09 - 25:51] Exit Strategies and Conclusion
Exiting real estate investments may trigger taxes, but strategies like 1031 exchanges can defer tax liability.Quote:
"Don't get into real estate for tax savings. Get into real estate to grow your wealth and then experience the benefit of tax savings that comes with real estate as that cherry on top." - Mike Jesowshek, CPA
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
-
Send us a Text Message.
Are you worried about filing your tax return on time or paying your tax bill?
In this episode, Mike Jesowshek discusses tax extensions and strategies for paying tax bills, addressing common misconceptions and providing practical advice. He clarifies that filing an extension does not increase audit risk and emphasizes the importance of timely filing and payment. Mike outlines options for those who can and cannot afford their tax bills, including installment agreements and offers in compromise. Throughout the discussion, he stresses the significance of proactive tax planning to avoid financial strain in the future.
[00:00 - 05:21] Understanding Tax Extensions and Their Importance
Filing an extension doesn't increase audit risk, can lower chances of audit.The reasons for filing an extension include waiting on documents or incomplete bookkeeping.Extensions extend time to file, not time to pay; taxes are still due on original deadlines.Failure to file penalties is more severe than failure to pay penalties.Make estimated payments with extensions to avoid penalties and interest.[00:05:33 - 00:18:12] Strategies for Paying Tax Bills
For those who can afford tax bills, options include automatic withdrawal, online payments, or credit/debit card payments.For those who can't afford tax bills, filing returns is crucial; failure to file penalties are harsher.The options for payment include borrowing funds, short-term payment plans, or offers in compromise.Installment agreements with the IRS require timely payments to avoid complications.Proactive tax planning and estimated tax payments can prevent future financial strain.Direct Quotes:
"Filing an extension is simply an extended time to file your tax return. The taxes are still due on that original due date." - Mike Jesowshek
"Extensions extend time to file, not time to pay." - Mike Jesowshek
Resources Mentioned:
IRS Direct Pay: https://www.irs.gov/payments/direct-pay______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
-
Send us a Text Message.
Ever wondered if your global business ventures could be affecting your U.S. taxes more than you realize?
In the podcast episode, Mike Jesowshek delves into the intricacies of foreign income for small business owners, covering essential aspects such as reporting requirements, types of foreign income, tax treaties, exemptions, the foreign earned income exclusion, the foreign tax credit, and compliance with reporting obligations. He emphasizes the importance of U.S. citizens and residents reporting worldwide income on their U.S. tax returns, regardless of where the income is earned. Mike also discusses strategies to mitigate double taxation, such as utilizing tax treaties and claiming foreign tax credits or income exclusions, while underscoring the critical nature of maintaining accurate records and understanding compliance requirements to ensure transparency and adherence to tax laws.
[00:00 - 05:00] Introduction to Foreign Income for Entrepreneurs
Mike Jesowshek introduces the topic of foreign income reporting for small business owners.Discussion on the requirement for U.S. citizens and residents to report worldwide income.[05:00 - 10:00] Tax Treaties, Exemptions, and Foreign Earned Income Exclusion
Explanation of tax treaties and exemptions to avoid double taxation.Details on the foreign earned income exclusion, including eligibility criteria.[10:00 - 15:18] Compliance and Reporting Requirements
Overview of the compliance and reporting requirements for U.S. taxpayers with foreign income or assets.Explanation of FBAR reporting requirements for individuals with foreign bank accounts or financial interests.Quote:
"There might be a credit, there might be some exclusion of it, there might be some exemptions, but the IRS wants to know about it." - Mike Jesowshek, CPA
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
-
Send us a Text Message.
In this episode, Mike Jesowshek answers various listener questions regarding tax strategies, S corporation elections, hiring children for tax benefits, and setting up retirement plans for businesses with non-owner employees. The episode emphasizes the importance of structuring businesses correctly to maximize tax savings, including the considerations for S corporation status, late elections for business structures, the benefits of hiring family members, and the intricacies of purchasing a business and tax implications. Mike also discusses the potential of setting up retirement plans for employees as a tax-advantageous move for small businesses.
[00:00 - 00:36] Introduction to Q&A Session
[00:36 - 10:10] Q&A with Mike Jesowshek, CPA part 1
Mike discusses the permanence of S corp elections and the possibility of revoking them.He explains the conditions under which a late S corp election can be made for businesses already in operation.Employing your children in your business for tax advantages has benefits.Mike discusses the tax implications of seller-financed business purchases and the importance of understanding the nature of the purchase (asset vs. stock sale).How the capitalization policy for items under $2,500 affects tax deductions.[10:10 - 23:50] Q&A with Mike Jesowshek, CPA part 2
Owning multiple LLCs under one holding company can simplify tax filing and considerations for asset protection.Separating entities based on active participation versus passive income sources, such as rental properties is important.Mike gives an overview of retirement plan options for small businesses and the tax benefits associated with offering them to employees.What is the best setup for businesses operating between California and Florida?Mike’s advice on consolidating tax filings for multiple LLCs under a Wyoming LLC, emphasizes the need for legal advice on asset protection.What about hiring young grandchildren and its tax implications?Setting up a separate LLC for Airbnb or furnished property businesses.What are the tax benefits and options for setting up retirement plans for small business employees?[23:50 - 24:14] Closing Segment
Direct Quotes:
"Hiring your kids is potentially a great way where you can get a business deduction and they pay no income taxes on that income, again, potentially." - Mike Jesowshek, CPA
"You cannot save taxes by simply learning tax strategies. You save taxes when you learn them and then you implement them." - Mike Jesowshek, CPA
"If you're starting a new business, start that business where you're operating. That's going to be the easiest piece." - Mike Jesowshek, CPA
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
-
Send us a Text Message.
Did you know there are still tax-saving strategies you can implement after the year has ended?
In the episode, Mike Jesowshek focuses on tax strategies that entrepreneurs and business owners can implement post-year-end to optimize their tax positions. He covered various aspects, including making contributions to retirement plans (both traditional and Roth IRAs, as well as employer contributions to plans like SEP IRAs and solo 401(k)s), the importance of completing bookkeeping to not miss out on potential deductions and maximizing business deductions like home office and automobile expenses. Additionally, Mike highlights the value of health savings accounts as a tax-advantaged tool and the critical deadlines for making contributions or taking deductions to apply for the 2023 tax year.
[00:00 - 05:07] Retirement Tax Strategies After Year-End
Traditional IRAs or Roth IRAs are standard retirement accounts available to both business owners and non business owners. You can contribute to a Traditional IRA or Roth IRA until your tax filing date or due date (Not to Exceed April 15). You can contribute until your tax filing date including extensions to the employER contribution portions.[05:07 - 10:27] Tax Strategies After Year-End for Business Owners
Go through all of your spending for the year with a fine tooth comb to see if there are any deductions related to the business that can be added to the bookkeeping.Do not be afraid to take a valid home office deduction.Mileage in automobile expenses can be included in tax filing.After the tax year has ended, rental property owners are still able to consider conducting a cost segregation study.[10:27 - 15:43] Other Tax Strategies
A Health Savings Account (HSA) is a strategy everyone should be utilizing and maxing out if they qualify and have the funds available to do so.You do not get a tax deduction for Coverdell IRA but when you withdraw from it for qualified education expenses, it is tax-free (including any earnings).Quote:
“Health Savings Accounts are almost like a retirement plan on steroids.” - Mike Jesowshek, CPA
______
Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings
- もっと表示する
