Podcasts about podcast host mike jesowshek

Send us a textWhat if you could pay your kids a salary, take a business deduction, and teach them real financial skills at the same time? In this episode, Mike Jesowshek, CPA, explains how to legally hire your children in your business, what the IRS actually allows, and how to do it correctly so you avoid audits and penalties.You'll learn the rules for paying your kids under age 18, how to document their work, how much you can pay them tax-free, and how this strategy can double as a wealth-building tool through Roth IRAs.

Send us a textIf you've ever wanted to move money from your business to yourself without paying extra tax, this episode is for you.In this episode, you'll learn how the Augusta Rule, also called the 14-Day Home Rental Rule, lets business owners rent their personal homes to their own business and receive that income completely tax-free. You'll also learn exactly how to document it, what proof the IRS expects, and the common mistakes that can get this strategy disallowed.

Send us a textIf you've ever paid for business expenses out of pocket, like your phone bill, internet, or home office, and wondered if you can get reimbursed without paying more tax, this episode is for you.In this episode, you'll learn how an Accountable Plan lets business owners legally reimburse themselves and their employees tax-free. You'll also discover the 4 key rules every plan must follow to stay IRS-compliant, and the most common mistakes that lead to audit trouble.

Send us a textA single medical bill can wipe out your profits. But health expenses don't have to drain your cash flow. In this episode, you'll learn three powerful ways to turn your medical costs into legitimate tax deductions. From self-employed health insurance and Health Savings Accounts (HSAs) to Section 105 reimbursement plans and employee health benefits, these strategies can help business owners save thousands while staying fully IRS-compliant.

Send us a textIf you earn over $250,000 or plan to sell a highly appreciated asset, this episode could save you hundreds of thousands in taxes. Most business owners stop at basic deductions and retirement plans, but the wealthy use strategies that go far beyond that. In this episode, we break down the five categories of advanced tax planning, when they apply, and how to use them the right way.

Send us a textAre you spending money the wrong way? Every dollar is either pre-tax or after-tax money. Knowing the difference is the key to thousands in tax savings.In this episode, we cover how to turn everyday expenses into business deductions. From meals and travel to home office and even hiring your kids, you'll learn the mindset shift that could save you thousands each year. 

Send us a textWhat happens when you take a real small business owner, put them in the hot seat, and break down their tax strategy live? That's what we're doing in this episode.Eric runs a successful appraisal business, pays himself through an S-Corp, and last year wrote a $50,000 check to the IRS. Did he really have to? Mike digs into Eric's setup and reveals how simple shifts could slash his tax bill. From adjusting his salary to using the Augusta Rule, hiring kids, and planning for real estate, you'll see how the right strategy can cut thousands off your tax bill.

Send us a textMost business owners are driving right past thousands in tax savings without realizing it. In 2025, the IRS raised the standard mileage rate to 70 cents per mile, but that's only the beginning.In this episode, Mike breaks down exactly how to structure your auto deductions, avoid costly mistakes, and choose between the mileage method and actual expenses.

Send us a textSome entrepreneurs sell their companies and walk away with zero federal taxes. How? This is thanks to a strategy called QSBS.In this episode, tax strategist Alessandro of Get Dynasty breaks down Qualified Small Business Stock, new changes from the “Big Beautiful Bill,” and how founders can use trusts to multiply tax-free exits. If you're building or investing in startups, this could be the single most powerful tax break you'll ever use.

Send us a textMisclassifying workers is one of the biggest mistakes a business owner can make. It might seem cheaper to pay someone as a 1099 contractor, but if the IRS says they should be a W-2 employee, you're looking at back taxes, penalties, and possible audits that could cripple your business.In this episode, Mike breaks down the IRS framework for worker classification, the red flags that trigger audits, and the tax differences between employees and contractors. You'll learn how to protect your business, avoid costly penalties, and even find tax strategies that benefit both employers and contractors.

Send us a textIf I were starting a business today, this is exactly how I'd approach tax planning from the ground up. In this episode, we're tackling tax strategy hierarchy every small business owner should follow. From core strategies like hiring your kids and maximizing deductions, to advanced moves like asset purchases, oil and gas investments, and captive insurance, you'll learn the right order to implement them for maximum savings. We also answer listener questions on short-term rental deductions, the Big Beautiful Bill, and how to structure partnerships for smarter tax planning. 

Send us a textRetirement expert Matt Ruttenberg walks through 5 real-world business scenarios and how to choose the smartest retirement plan for each. Whether you're flying solo or managing a growing team, this episode breaks down IRA, SEP, SIMPLE, 401(k), and advanced options in a simple way… Plus, how to take advantage of powerful tax credits.

Send us a textTaking money out of your business isn't always tax-free. If you're not tracking your basis, you could get hit with a surprise capital gains tax, even without selling anything. Let's break down what basis means, how it works differently for Partnerships and S Corps, and why overlooking it could cost you thousands. 

Send us a textMixing active and passive income in one entity could be costing you thousands. In this episode, we break down why separating your income streams is essential. You'll learn how to structure your business the right way using S Corps, LLCs, holding companies, and even C Corps to unlock advanced tax strategies. From hiring your kids to slashing self-employment tax, this is the blueprint smart business owners use to keep more of what they earn.

Send us a textTrump's Big Beautiful Bill just became law. What's actually in it? On July 4th, the biggest tax overhaul since 2017 was signed, and it's packed with big wins for business owners. 100% bonus depreciation, a permanent 20% QBI deduction, tax-free tips and overtime, and brand-new deductions most people haven't even heard of. Let's break down the Big Beautiful Bill line by line so you know exactly what's changing, what's temporary, and how to use it to slash your tax bill before the window closes.

Send us a textWhen you're self-employed, getting approved for a mortgage isn't as straightforward as it is for W-2 employees. In this episode, Mike sits down with mortgage lender Bill Moeller to break down how tax-saving strategies can impact your mortgage application. 

Send us a text

Send us a text

Send us a textMissed the S Corp deadline? Don't panic. In this episode, Mike breaks down how to file a late S Corp election the right way so you can still unlock major tax savings. You'll learn what an S Corp really is, who qualifies, how to calculate your savings, and what to watch out for when making the switch. Plus, the exact steps to file a late election with the IRS, without triggering a red flag.

Send us a textMost people think tax planning is only for big corporations. But it's one of the most powerful tools any small business owner can use to save money.In this episode, Mike breaks down how tax planning is different from just filing your taxes, and why even brand-new business owners should be thinking about it. He also shares a real case study showing how one small business went from guessing on taxes to saving over $15,000 a year, just by planning ahead.If you've ever wondered whether tax planning is for you, this episode is the place to start.

Send us a textYou've heard of Roth IRAs, but no one talks about when and how to convert.In this episode, Mike breaks down exactly how a Roth conversion works, when it makes sense, and how to use it to build tax-free income in retirement.He also unpacks the key differences between Traditional and Roth accounts, plus real-life stories of business owners who used this strategy to grow wealth the IRS can't touch.

Send us a textAre you 100% sure your business entity is compliant? In this episode, Mike is joined by Nellie Akalp, CEO of CorpNet, to break down what compliance really means for LLCs and corporations. They cover everything from annual reports, meeting minutes, and registered agents to BOI reporting and choosing the right state to form your entity. You'll also learn when it makes sense to do it yourself, hire a service, or bring in a lawyer and what mistakes could cost you your limited liability status. If you want to avoid penalties, fees, or even losing your business, this is a must-listen.

Send us a text

Send us a text

Send us a text

Send us a text

Send us a text

Send us a text

Send us a text

Send us a text

Send us a text

Send us a text

Send us a text

Send us a textThinking about converting your C Corporation to an S Corporation? Before making the switch, do you know about the Built-In Gains (BIG) Tax—and how it could cost you thousands if you don't plan ahead?In this episode, Mike Jesowshek breaks down the Built-In Gains (BIG) Tax, a critical consideration for business owners converting from a C Corporation to an S Corporation. He explains why this tax exists, how it prevents businesses from avoiding double taxation, and the conditions under which it applies. Mike walks through key scenarios where the BIG Tax may or may not apply, how to calculate it, and the best strategies for minimizing or avoiding it. [00:00 - 03:30] Understanding the Built-In Gains (BIG) TaxMike introduces the BIG Tax and its purpose in preventing tax avoidance.What is the difference of taxation for C Corps versus S Corps?Owners need to be aware of BIG Tax before making an S Corp election.[03:31 - 11:15] Calculating the BIG Tax & IRS ConsiderationsMike shares the three key conditions that trigger the BIG Tax.Fair market value vs. adjusted basis determines built-in gains.Mike discusses the step-by-step breakdown of how to calculate the BIG Tax.Proper asset valuation at the time of conversion is critical.[11:16 - 14:00] Strategies to Avoid the BIG TaxHold onto assets for at least five years to bypass taxation.Time asset sales in loss years to offset taxable gains.Utilize NOL (Net Operating Loss) carryovers from the C Corp.[14:01 - 17:32] When the BIG Tax Does NOT Apply and Final ConsiderationsMike shares scenarios where business owners don't have to worry about the BIG Tax.BIG Tax is not a reason to avoid an S Corp election—planning is key.What is the importance of documentation and fair market value assessments?Notable Quotes:“The BIG Tax exists to stop business owners from electing S Corp status right before a liquidation or sale to dodge double taxation.” - Mike Jesowshek, CPA“Holding onto your assets for five years after converting to an S Corp is the simplest way to avoid the Built-In Gains Tax.” - Mike Jesowshek, CPA“The BIG Tax is important to understand, but it's not a reason to avoid an S Corp election. With the right planning, an S Corp is still a powerful tax-saving strategy.” - Mike Jesowshek, CPACheck out this episode's blog post: https://www.taxsavingspodcast.com/blog/beware-of-hidden-built-in-gain-big-taxes-when-transitioning-to-s-corporationClick here to book a demo call or you can visit https://taxelm.com/demo/ ______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com/-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: www.TaxSavingsTV.com 

Send us a textHave you ever considered how advanced tax strategies, from customized retirement contributions to optimizing home office deductions, might lower your overall tax burden? In this Q&A episode, host Mike Jesowshek answers listener questions on various tax topics. He covers issues ranging from retirement planning strategies, such as after‑tax contributions and Roth conversions in a solo 401(k), to the proper methods for paying oneself as a sole proprietor versus an S corporation. Mike also explains home office deductions, board meeting expenses, handling duplicate tax forms, and business entity conversions. [00:00 -  05:02] Retirement Contributions and Solo 401(k) OptionsMike discusses using after‑tax contributions and a Roth conversion in a solo 401(k) for high‑income earners.New members receive immediate access to a comprehensive suite of tax-saving tools and consultations.[05:02 - 10:42] Owner Draws, Home Office Deductions, and Board Meeting ExpensesMike explains how to oneself as a sole proprietor using owner draws versus payroll for S corporations.Understand that taking money out of a business as an owner draws does not reduce taxable profit.Ensure that business spaces are used exclusively for business, and document meetings carefully when using home space.[10:42 -  15:32] Hiring Family Members, Deducting Mileage Expenses, and Entity ConversionMike discusses claiming mileage expenses when an employee uses a personal vehicle for business.Recognize that converting a C corporation back to an LLC may trigger taxable events; professional consultation is advised.[15:32 - 20:17] Handling Duplicate 1099 Forms and Short-Term Rental DeductionsWork with the issuer to correct mistakes or offset the extra reporting with a matching expense entry.Understand the timing of deductions and whether expenses need to be capitalized based on service start dates.[20:17 - 27:20] S Corporation and Subsidiary Structures; Home Office with Additional FacilityMike details the benefits of an S corporation holding company structure for multiple LLCs and addresses home office deductions when using a separate facility.Proper structuring can consolidate profit and loss reporting, and the administrative office rule allows a home office deduction even when an additional business location exists.Direct Quotes:"If you are helping out family members, and those family members can also do some work for your business, why not get a business deduction for that help that you want to do anyways?" - Mike Jesowshek, CPACheck out this episode's blog post! Visit https://www.taxsavingspodcast.com/blog/tax-q-a-short-term-rentals-1099-confusion-entity-conversions-and-creative-tax-strategies Click here to book a demo call or you can visit https://taxelm.com/demo/ ______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com/-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: www.

Send us a textAre you making the most of the new 2025 tax changes, or could a simple tax strategy adjustment save you thousands?In this episode, Mike breaks down key tax changes for 2025 that small business owners need to know. He covers adjustments to tax brackets, increases in the standard deduction, new mileage rates, retirement contribution limits, and updates to gift and estate tax exclusions. He explains how these changes impact tax planning, emphasizing strategies to optimize deductions and avoid unnecessary tax burdens. Additionally, he highlights potential future tax changes with the incoming administration and the importance of staying updated.[00:00 - 05:21] Understanding the 2025 Tax BracketsTax brackets adjust annually for inflation, ensuring more income is taxed at lower rates.Mike explains how tax brackets work and why crossing into a higher bracket doesn't mean all income is taxed at that rate.Knowing your tax bracket can help with strategic tax planning, such as Roth conversions and deductions.[05:22 - 10:24] Mileage Deduction Increase for 2025Mike discusses when to use the mileage method versus actual expenses for vehicle deductions.Choosing the right deduction method (mileage vs. actual expenses) depends on vehicle costs and business mileage.[10:25 - 14:44] Standard Deduction UpdatesThe standard deduction increases to $30,000 for married filers and $15,000 for single filers.How can this impact taxpayers deciding between itemized and standard deductions?Most taxpayers will benefit from the standard deduction, but strategic "bunching" of itemized deductions can provide tax advantages.[14:45 - 18:53] Retirement Contribution Limits IncreaseEmployee 401(k) contribution limit rises to $23,500, while IRA limits remain at $7,000.Maximizing retirement contributions helps reduce taxable income and build financial security.[18:54 - 21:53] Gift & Estate Tax ChangesThe gift tax exclusion increases to $19,000 per recipient.Estate tax exemption rises to $13.99 million, affecting wealth transfer planning.Strategic gifting can help reduce taxable estates and transfer wealth efficiently.Proactive tax planning ensures business owners take advantage of new tax laws while avoiding potential pitfalls.Quotes:“Simply going into a new tax bracket doesn't mean all of your income is taxed at that higher rate.” - Mike Jesowshek, CPA“More of your income being taxed at a lower rate is good news—it means you're keeping more of what you earn.” - Mike Jesowshek, CPAClick here to book a demo call or you can visit https://taxelm.com/demo/ ______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com/-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: www.TaxSavingsTV.com 

Send us a textAre you tired of overpaying on taxes and looking for straightforward strategies to save money while growing your business?In this episode, Mike Jesowshek announces the launch of his new book, Small Business Tax Savings Handbook. The book aims to help small business owners, entrepreneurs, and freelancers reduce taxes legally and build financial stability. Designed to be accessible and action-oriented, it includes proven tax strategies, practical examples, and end-of-chapter checklists. Mike also discusses launch week bonuses, including a tax strategy checklist, a live Q&A webinar, and a bonus chapter. The episode emphasizes the importance of year-round tax planning and implementing strategies to maximize savings.[00:00 - 05:40] What the Book OffersMike explains the book's purpose: reducing taxes and empowering small business owners.Understanding tax incentives is crucial for financial success.He shares step-by-step guides to make complex tax topics easy to understand.Implementing strategies leads to immediate and long-term savings.[05:41 - 07:17] Who the Book is ForThe book is designed for small business owners, entrepreneurs, and freelancers.Mike highlights the need for year-round tax planning.Effective tax planning can create opportunities for wealth growth.[07:18 - 09:11] Launch Week Bonuses and Call to ActionMike gives details about bonuses: tax strategy checklist, live Q&A, and a bonus chapter on 2025 strategies.He encourages listeners to purchase the book and leave reviews.Direct Quotes:“This isn't just another tax book; it's a game plan for small businesses ready to take control of their financial future.” - Mike Jesowshek, CPA“You can learn all day, but until you implement it, you don't see tax savings.” - Mike Jesowshek, CPA“Effective tax planning isn't just for tax season—it's a year-round effort.” - Mike Jesowshek, CPACheck out this episode's blog post: https://www.taxsavingspodcast.com/blog/introducing-the-small-business-tax-savings-handbookOrder your very own copy of the Small Business Tax Savings Handbook: How to Save on Taxes While Growing Your Business and Wealth by visiting Amazon!______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com/-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: www.TaxSavingsTV.com 

Send us a textWhat if you could apply the wealth-building strategies of billionaires to your own small business? In this episode, Mike Jesowshek demystifies the concept of a family office, traditionally associated with the ultra-wealthy, and explains how small business owners can adopt similar strategies to build wealth, optimize taxes, and create a legacy. He details the roles and responsibilities within a family office, such as tax strategists, attorneys, and financial advisors, and outlines actionable steps for organizing finances, assembling a team, and reviewing progress regularly. Mike emphasizes starting small, documenting plans, and growing the family office alongside business success, offering practical guidance for sustainable financial management.Discover how to create a family office tailored to your goals by tuning in![00:00 - 02:11] Why Small Business Owners Need a Family OfficeMike explains what a family office is and how it manages wealth.The principles of family offices can be scaled to any income level.Prioritize creating a financial safety net alongside business investments.[05:13 - 10:23] Key Roles in a Family OfficeMike breaks down the core components, including tax strategists, financial advisors, attorneys, and bookkeepers.A well-structured team can significantly enhance tax efficiency and wealth growth.[10:24 - 16:12] Building Your Family OfficeSteps to get started: organize finances, fill roles, and align the team with personal goals.Mike stresses the importance of due diligence when selecting advisors.Even small steps, like self-managing roles initially, can lay the foundation for success.[16:13 - 21:40] Continuous Improvement and DocumentationMike encourages regular reviews and adjustments as the business evolves.He suggests documenting roles and plans for clarity and legacy planning.Consistent reviews and clear documentation prevent stagnation and ensure long-term success.[21:41 - 24:13] Closing Thoughts and ResourcesMike reiterates the value of taking action and starting small.Proactive implementation leads to significant financial benefits.Direct Quotes:"A family office is kind of like a CEO-level approach to managing wealth." - Mike Jesowshek, CPA"You get to pick and choose what your family office looks like—start small and grow as your business grows." - Mike Jesowshek, CPA"Think of your family office as a tool belt: each role is a tool that helps you achieve your goals." - Mike Jesowshek, CPA"Don't just fill a role to fill a role—do your due diligence and make sure the people you choose align with your vision." - Mike Jesowshek, CPACheck out this episode's blog: https://www.taxsavingspodcast.com/blog/build-your-own-family-office-start-saving-taxes-and-building-wealth-today______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com/-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: www.T

Send us a textAre you maximizing your tax savings while building your retirement plan, or leaving opportunities on the table?In this episode, Mike Jesowshek is joined by Matt Ruttenberg to discuss strategies for reducing your 2024 tax bill through retirement contributions and planning. They highlight key deadlines for individual and employer contributions, such as the April 15th cutoff for IRAs and the extended filing deadlines for employer contributions. They also delve into options like solo 401(k)s, safe harbor plans, and cash balance plans, emphasizing the importance of early planning and ongoing consultation to maximize tax savings and retirement benefits.[00:00 - 02:17] IntroductionMike welcomes Matt Ruttenberg back to the show as a trusted retirement expert.Discussion begins with how the new year presents opportunities to address past tax planning mistakes.[02:18 - 05:59] IRA ContributionsDeadlines for Roth and traditional IRAs are April 15th.Contributions are based on individual earned income, not business profits. Lesson: Plan IRA contributions early, as extensions don't apply.[06:00 - 10:14] Profit Sharing and Employer ContributionsEmployer contributions for profit sharing plans can be made until the extended filing deadline.Different strategies, such as "new comparability," can maximize owner benefits.[10:15 - 13:28] Solo 401(k)s and New RulesFirst-year solo 401(k) participants can contribute employee portions up to April 15th.This rule applies to sole proprietors and single-member LLCs, not S-corporations.[13:29 - 16:11] Safe Harbor and ComplianceSafe harbor plans help owners and highly compensated employees avoid compliance issues.A 4% non-elective contribution can be made post-deadline to improve compliance.[16:12 - 24:33] Advanced Plans: Cash Balance and Defined BenefitHigh-income businesses can use defined benefit plans for contributions up to $300,000.These plans require actuary involvement and multi-year commitments.[24:34 - 31:16] Key Takeaways and Planning for 2025Employer contributions can be made until the filing deadline, including extensions.2025 should focus on proactive tax planning to avoid last-minute issues.Direct Quote:"All 401(k) plans are not created equal; work with someone who knows the options available to you." - Matt RuttenbergBuild a custom 401(k) for your business by visiting https://lifeincrs.com/tax-savings-podcast/ ______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com/-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: www.TaxSavingsTV.com 

Send us a textDid you know you can maximize your HSA contributions even if you switch to a high-deductible health plan late in the year?In this episode of the Small Business Tax Savings Podcast, Mike Jesowshek answers listener-submitted tax and business-related questions, covering topics such as HSA contributions, structuring multiple businesses, employing children, vehicle deductions, the Employee Retention Tax Credit (ERC), and year-end tax planning strategies. He emphasizes the importance of implementing tax-saving strategies tailored to individual circumstances and highlights tools like Tax Savings Podcast resources and Taxelm for deeper guidance.Discover this and more tax-saving tips in today's listener Q&A episode![00:00 - 02:53] HSA Contributions and the Last Month RuleMike explains the IRS's Last Month Rule, allowing full-year HSA contributions if enrolled by December 1st.[02:53 - 05:42] Starting a Business and Learning Tax StrategiesA Minnesota listener seeks guidance after forming a new business.What is the importance of implementation over mere learning of tax strategies?[05:42 - 07:39] Employing Children and Managing Child SupportMike gives advice on structuring small business ownership to avoid affecting child support obligations.[07:39 - 13:00] Structuring Multiple BusinessesDiscussion on using DBAs versus separate LLCs for businesses in different verticals.Consideration of liability and future sale opportunities.[13:00 - 19:16] Core Tax Strategies and Vehicle DeductionsMike discusses core tax strategies such as home office, automobile, and travel deductions.He explains vehicle deductions, depreciation methods, and financing.[19:16 - 27:30] Year-End Tax Planning TipsMike clarifies on how to handle ERC credits in amended taxes.He encourages listeners to implement achievable strategies before the year ends.Direct Quotes:“The key piece is implementation. You can learn all you want all day long, but if you don't implement anything, you don't see the tax savings.” - Mike Jesowshek, CPA“As long as you have that high-deductible health plan in place by December 1st, you're eligible to contribute the full amount to an HSA for the year.” - Mike Jesowshek, CPA“Take off what you can bite off and do that. I'd much rather see you do one or two strategies than try to do ten and end up doing zero.” - Mike Jesowshek, CPACheck out this episode's blog post: https://www.taxsavingspodcast.com/blog/tax-questions-answered-vehicle-deductions-entity-structure-wotc-compliance-and-more ______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com/-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: www.TaxSavingsTV.com 

Send us a textAre you missing out on key tax deductions by mixing personal and business expenses?In this episode, Mike Jesowshek  discusses the importance of setting up an accountable plan for businesses, especially S and C corporations. He breaks down how accountable plans allow business owners to reimburse themselves for personal expenses with a business use, ensuring that the reimbursements are not taxable. Mike emphasizes key requirements for an accountable plan, such as having a business connection, proper substantiation, and timely payments, while also highlighting common deductible expenses like home office, automobile use, and travel.Find out how an accountable plan can help you save on taxes while staying compliant with the IRS![00:00 - 05:21] Introduction to Accountable PlansMike introduces the concept of an accountable plan and its importance for business owners.He explains how separating business and personal expenses is crucial to avoid IRS scrutiny.He also mentions that even if personal payments are made for business items, they can be reimbursed with a plan.[05:22 - 10:37] Key Requirements of an Accountable PlanMike outlines the four main requirements: business connection, substantiation, avoiding excess payments, and timely payments.He discusses examples of business-related expenses that can be reimbursed, such as home office use and automobile expenses.Turning reimbursements into taxable income can cause risks if not handled properly.[10:38 - 13:49] Setting Up an Accountable PlanMike walks through the process of setting up a written reimbursement policy (accountable plan).Businesses need to create a reimbursement tracker to document expenses.Taxelm's templates and tools can help businesses implement these plans correctly.[13:50 - 17:43] Common Expenses for ReimbursementMike highlights the most common reimbursable expenses: home office, automobile, cell phone, internet, and travel.Business owners should take advantage of available deductions to reduce taxable income.Direct Quotes:"The IRS looks at that as being sloppy. So the first key to understand is to always have a separate business bank account and credit card that you run all of your business activity through." - Mike Jesowshek, CPA- "If you don't have an accountable plan put in place, it will be taxable to us, and that's why it's so important." - Mike Jesowshek, CPA"The IRS gives us incentives as business owners—home office deductions, automobile deductions—but it's your responsibility to understand and implement them correctly." - Mike Jesowshek, CPACheck out this episode's blog post: How Do I Reimburse Myself From the Business? When Does An Accountable Plan Come Into Play?______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com/-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: www.TaxSavingsTV.com 

Send us a textDo you know how to unlock the power of tax-free retirement savings using a Mega Backdoor Roth? In this episode, Mike Jesowshek provides a beginner's guide to building a Mega Backdoor Roth IRA in 2024. He explains the differences between traditional and Roth IRAs, then details how to maximize retirement savings using the Mega Backdoor Roth strategy. Mike breaks down the steps for contributing beyond standard limits, focusing on how business owners can utilize solo 401(k) plans. He also discusses the long-term benefits of tax-free growth and withdrawals, addressing common concerns and mistakes along the way.Discover the strategies to potentially grow your account to a million dollars in just a few years![00:00 - 05:21] Introduction and Basics of Roth IRAs Roth IRAs allow tax-free growth and withdrawals in retirement.  Traditional vs. Roth: Traditional IRAs offer tax deductions upfront, while Roth IRAs grow tax-free with withdrawals in retirement.  Max contributions for 2024: $7,000 ($8,000 for those over 50).  [05:22 - 11:18] Backdoor and Mega Backdoor Roth ExplainedThe backdoor Roth strategy involves making non-deductible contributions to a traditional IRA and then converting it to a Roth IRA.  Mega Backdoor Roth allows much larger contributions using 401(k) plans.  Benefits of Mega Backdoor Roth include higher contribution limits, tax-free growth, and tax-free withdrawals.  This strategy is beneficial for anyone with access to a 401(k) plan, even those in lower tax brackets.  [11:19 - 14:08] Strategy Steps and ExampleMax out employee contributions, then after-tax contributions, and convert to a Roth the next day.  A business owner can contribute up to $76,000 per year and, with a 12% return, accumulate over $1 million in just 7.5 years.  The earlier you start, the greater the potential for tax-free growth.Direct Quotes:"The beauty behind a Roth is that you take the pain today, but it grows tax-free, and your withdrawals in retirement are tax-free." - Mike Jesowshek, CPA"The Mega Backdoor Roth strategy allows you to supercharge your retirement savings with higher contribution limits and long-term tax advantages." - Mike Jesowshek, CPA"Imagine putting away $76,000 per year into a Roth and seeing it grow tax-free — that's mind-blowing." - Mike Jesowshek, CPA  Check out this episode's blog post: https://www.taxsavingspodcast.com/blog/guide-to-building-a-mega-backdoor-roth______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com/-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: www.TaxSavingsTV.com 

Send us a textHave you ever wondered if you could deduct a mentorship program paid for on your personal card before starting your business?In this episode, Mike Jesowshek, a CPA, hosts a listener Q&A session addressing various tax-related questions from small business owners. He covers topics such as deducting business expenses, managing mentorship payments, selling a business, and handling high medical costs for business owners. Mike provides clear guidance on tax planning strategies and the importance of keeping thorough documentation for deductions, while also offering practical advice on avoiding issues with hobby loss rules and S-Corp-specific challenges.Learn how to maximize your business deductions and avoid common tax pitfalls in this Q&A episode![00:00 - 00:40] IntroductionMike Encourages listeners to submit their tax-related questions via the website.[00:40 - 05:23] Business Deductions and Selling a BusinessMike explains that expenses can still be deducted if they're legitimate business expenses and provides guidance on using an accountable plan for reimbursement.He discusses the validity of taking business deductions even when a business has minimal income.There is a need for consistent profit to be considered a legitimate business.[05:23 - 10:23] Section 105 Plans and Ownership Draws in an S-CorpMike details how to set up a family management company to use the Section 105 plan if operating as an S-Corp and hiring a spouse.He also emphasizes that distributions must be proportional to ownership percentages in S-Corps to avoid tax issues.[10:23 - 16:11] Travel Deductions and ConsultationsMike covers travel deductions when charging clients a travel fee and offers advice on setting up tax consultations through his company. He clarifies that even if a travel fee is charged to a client, the associated travel expenses can still be deducted.[16:11 - 21:02] Business Expenses and Accountable PlansMike emphasizes that while the deductions remain the same, the IRS prefers business-related expenses to be run through business accounts.  Owner draws are not taxed directly; instead, taxes are based on the profit of the business, regardless of how much is drawn from the account.  [21:02 - 24:10] Tax Helm Services and ConsultationsMike highlights Tax Helm's services, which include consultations and comprehensive tax planning for small businesses, with a guarantee to provide tax savings that cover the cost of the service.  Direct Quotes:“Just because you paid for it personally, doesn't mean you lose the deduction—it's still a valid business expense if it's related to your business.” - Mike Jesowshek, CPA“The IRS always wants to see that you're running your business like a business, not like a hobby.” - Mike Jesowshek, CPACheck out this episode's blog post: https://www.taxsavingspodcast.com/blog/listener-q-a-with-mike-jesowshek-cpa-10-16-2024 _____Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com/-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/

Send us a textDo you know the different types of 1099 forms your business may need to file?In this episode, host Mike Jesowshek is joined by Christina Wright from Tax Bandits to discuss everything business owners need to know about 1099 forms. The conversation covers different types of 1099s, when they need to be filed, and who is required to receive them. Christina provides insights into the importance of collecting W-9 forms, staying organized with vendor payments, and filing 1099s accurately and on time. They also address changes in 1099-K requirements, discuss the new 1099-DA for reporting digital assets, and highlight how software solutions like Tax Bandits simplify the filing process.Learn how staying organized and using the right tools can make tax season stress-free![00:00 -  04:45] Overview of 1099s and TypesChristina explains the purpose of 1099 forms.She discusses the various types of 1099s, including NEC (Non-Employee Compensation) and MISC (Miscellaneous).She also shares the importance of understanding 1099 filing as an IRS requirement for business owners.[04:46 - 10:27] W-9 Form Importance and Vendor OnboardingChristina explains the $600 payment threshold for issuing 1099s.The threshold is cumulative over the year, not per individual payment.Missing or incorrect information can lead to complications when filing 1099s.[10:28 - 15:59] Common Issues and Filing Best PracticesInaccurate details (e.g., TIN, business name) on 1099 forms can cause IRS rejections.Businesses should use processes like TIN matching to verify information early.[16:00 - 19:20] 1099 Filing Solutions: Tax BanditsChristina shares an overview of how Tax Bandits simplifies 1099 filing.How integrating accounting software like QuickBooks and Sage can help streamline the process.She shares the benefits of cloud-based filing and validation features.[19:21 - 26:38] 1099-K and Recent ChangesChristina discusses changes to the 1099-K threshold from $20,000 to $5,000 for electronic payments.The IRS shifted towards increasing reporting transparency for third-party transactions.She Introduces the new 1099-DA for reporting cryptocurrency assets.Key takeaways for business owners: collect W-9 forms upfront and keep good payment records.Notable Quotes:"The main thing business owners need to know is that 1099s are used to report payments for a lot of different things to different parties." – Christina Wright"The $600 threshold is not based on one payment—it's cumulative over the entire year." – Christina WrightCheck out this episode's blog post: How Does the Home Office Deduction Work?______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com/-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/VISIT: www.TaxSavingsTV.com

Send us a textAre you missing out on one of the most overlooked tax deductions available to small business owners?In this episode, Mike Jesowshek discusses the often misunderstood home office tax deduction, breaking down its requirements and benefits for small business owners. He covers the main qualifications, including exclusive business use and regular use, as well as the administrative office rule that opens the door for many professionals to take advantage of this deduction. Mike also compares the simplified and actual methods of calculating the deduction and offers practical advice on maintaining proper documentation to ensure compliance and maximize savings.Learn how the home office deduction can reduce your tax bill and boost your savings by tuning in![00:00 - 05:25] Introduction to Home Office DeductionMike explains the common misconceptions about the home office deduction.He stresses that the IRS encourages this deduction as long as it's used correctly.The home office must be used exclusively for business and on a regular basis.Mike explains that areas like the dining room don't qualify, but dedicated spaces do.He introduces the administrative office rule, allowing home offices to qualify even if work is done elsewhere.[05:25 - 11:03] Calculating and How to Claim the Home Office DeductionSimplified method: $5 per square foot, up to 300 sq. ft.Actual method: Business use percentage multiplied by total home expenses.Mike walks through an example of calculating the deduction using both methods.He highlights when the actual method may provide larger savings.Mike explains how sole proprietors and S corporations claim the deduction using different forms.[11:03 - 18:08] Importance of DocumentationEmphasizes the need for thorough documentation, such as taking pictures and keeping cost records, to protect against audits.Mike encourages business owners to take advantage of this deduction before year-end.Direct Quotes:"The home office deduction is black and white in the tax code. The IRS wants you to take advantage of it." - Mike Jesowshek, CPA"Every deduction is worth it. This takes very little time as long as you have the tools to help make it happen." - Mike Jesowshek, CPA"The key to successfully using the home office deduction is proper documentation and following the rules." - Mike Jesowshek, CPACheck out this episode's blog post: How Does the Home Office Deduction Work?______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin 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.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: https://www.youtube.com

Send us a Text Message.Business owners are always hiring new employees, but most of the time they're missing out on potential tax credits just because they're unaware about what's available.In this episode, Mike Jesowshek, provides a comprehensive guide on the Work Opportunity Tax Credit (WOTC) and how you as a business owner might be able to take advantage of this tax credit. He explains what the WOTC is, who qualifies for it, how to claim it, and its benefits. Throughout the episode, Mike shares practical advice and examples to help business owners understand and implement this valuable tax credit.[00:00 - 03:30] What Is The Work Opportunity Tax CreditA business credit available to employers who hire individuals from targeted groupsDesigned to incentivize businesses to hire from specific populations that may face barriers to employmentA way for businesses to reduce their tax liability while diversifying their workforce and making a positive community impact[03:31 - 06:45] Targeted Groups and Credit AmountThe targeted groups eligible for WOTC include:VeteransState assistance recipients under part four of title four of the Social Security Act (SSA)FelonsResidents in designated empowerment zones or rural renewal countiesIndividuals referred following a rehabilitation plan or programRecipients of Supplemental Nutrition Assistance Program (SNAP)Recipients of Supplemental Security Income Benefits under Title 16 of the Social Security ActIndividuals experiencing long-term unemploymentThe general rule for credit amount is 40% of the first $6,000 in wages for employees working 400+ hours.The maximum credit is typically $2,400 per eligible employee[06:46 - 09:15] Claiming the WOTCComplete IRS Form 8850 before or on the day of job offer.Submit the form to the local agency within 28 calendar days of the employee's start date.Wait for certification from the local agency.Claim the credit using Form 5884 on your business tax return.[09:16 - 15:00] Benefits, Examples and ConsiderationsBenefits include tax savings, a diverse workforce, and community impact.The WOTC is a dollar-for-dollar tax credit, not a deduction.Direct Quotes:"The truth is that business owners are always hiring new employees, but all too often they're missing out on potential tax credits simply because they don't know about them." - Mike Jesowshek, CPA"This is a credit, which means it's a dollar for dollar in tax savings. This is not a tax reduction. This doesn't reduce your income." - Mike Jesowshek, CPAResources Mentioned:IRS Form 8850Form 5884______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin 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.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: https://www.youtube.com

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 ConceptsMike 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 PracticesAvoid 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-UpMike 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 JesowshekResources 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 PodcastJoin 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.comFacebook 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 OptionsMike 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 SelectionMatt 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&AMatt 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 RuttenbergConnect with Matt Ruttenberg!LinkedIn: https://www.linkedin.com/in/mattruttenberg/ ______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin 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.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: https://www.youtube.com/@TaxSavings 

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)sMike 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 PlanningMatt 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 MentionDirect 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 RuttenbergConnect with Matt Ruttenberg!LinkedIn: https://www.linkedin.com/in/mattruttenberg/ ______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin 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.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: https://www.youtube.com/@TaxSavings 

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 PlansMatt 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 StudiesMatt 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 PlansMatt 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 RuttenbergConnect with Matt Ruttenberg!LinkedIn: https://www.linkedin.com/in/mattruttenberg/ ______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin 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.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: https://www.youtube.com/@TaxSavings