Podcasts about podcast host mike jesowshek

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.

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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 

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 ExchangesMike 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 InvestmentMichael 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 AvenueExploring 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 OptionsHow 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 AdviceMichael 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 SchererConnect with Michael!LinkedIn: https://www.linkedin.com/in/michael-scherer-caia-8147504/ Email: levi.smith@rcxcapitalgroup.com ______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 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 PrerequisitesMike 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 OptionsMichael 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 ExchangesHow 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 ExchangeMichael 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-UpMichael 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 SchererConnect with Michael!LinkedIn: https://www.linkedin.com/in/michael-scherer-caia-8147504/ Email: levi.smith@rcxcapitalgroup.com ______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 

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 StudiesMike 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 DepreciationBonus 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 AnalysisGabriel 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 ThoughtsEmphasis 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 FlorentinoConnect with Gabriel!Email: gflorentino@engineeredtaxservices.com Website: https://engineeredtaxservices.com ______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 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 ImportanceFiling 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 BillsFor 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 JesowshekResources Mentioned:IRS Direct Pay: https://www.irs.gov/payments/direct-pay ______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 

Expert Danny Wright from Peisner Johnson discusses the intricacies of sales tax and how it applies to business owners. Core concepts are discussed including determining if a business is subject to sales tax, identifying 'nexus' states where sales tax may be applicable, and understanding which products or services are taxable. Danny highlights the impact of accidental non-compliance, discussing the pitfalls of not remitting the sales tax charged to customers. He also notes complications caused by remote workers or drop-shipping in different states and explains the responsibilities under new marketplace facilitator laws. Finally, Danny explains how their firm offers free consultations to help businesses understand their unique responsibilities and potential liabilities.[00:00 - 09:24] Introduction to Sales Tax for Business OwnersDanny emphasizes the critical nature of sales tax as a gross receipts tax, which is independent of business profitability. He underlines the significance of setting up tax collection processes and the peace of mind it brings, despite initial administrative costs.Three main questions are addressed: What is the sales tax nexus? Is my product or service subject to sales tax? Who is responsible for handling sales tax?[09:24 - 20:30] The Impact of Sales Tax Nexus on Business OperationsSales tax is due based on the 'ship to' address, not where the product is sold or the business has nexus.A single small transaction does not automatically trigger nexus unless it exceeds the state's established threshold.Sales tax responsibility begins only after reaching the threshold, and states often offer a grace period for businesses to register and start collecting tax.[20:54 - 33:55] Invoicing and Pricing in TaxationDanny discusses the complexity of sales tax, highlighting that a business might have both taxable and non-taxable revenue streams.How businesses invoice their customers can affect taxability.Businesses with nexus in multiple states may still find that their products are exempt from sales tax everywhere.Quotes:"It's super important to pay attention to [sales tax] because it doesn't care about profitability... it really is something that can get you in trouble in a hurry in the future if you don't get an "Once you hit [an economic nexus] threshold, that is when your responsibility begins... a lot of the states offer a grace period... that's part of what you can pay attention to when you're reviewing your nexus." - Danny Wright"If you collect tax from a customer, it's not yours. And never keep it because you're going to be dealing with questions around fraud in the future." - Danny WrightConnect with Danny!Email: dannyw@pj.tax  Website: https://peisnerjohnson.com ______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 

What if you discovered that by embracing the new e-filing changes and understanding the nuances of the 1099 NEC, 1099-MISC, and 1099-K forms, you could not only streamline your tax processes but also potentially uncover hidden financial benefits for your business? In this episode, Mike welcomes Christina Wright to discuss the IRS 600 1099-k tax rule and its recent postponement. They also discuss the changes in e-filing, covering the difference between 1099-NECs and 1099-MISCs, their uses, and their dues. The conversation revolves around the importance of adhering to tax rules to avoid penalties and the implications of the new 1099k rule for transactions made using cards or payment apps. They also cover the future outlook of this threshold for tax year 2024. Tune in to learn more about the impact of newly-imposed e-filing changes and the recommended practices in choosing provisions for e-file providers![00:00 - 04:22] Understanding 1099s and Their ImportanceChristina highlights the 1099 NEC (Non-Employee Compensation) form, used for reporting payments to freelancers or contractors over $600. The 1099 Miscellaneous form reports various types of payments such as rents and awards.[04:22 - 11:22] Understanding 1099-k and Its ImplicationsChristina discusses the process of filing 1099 forms and the complexities involved.Historically, the 1099-k had a high threshold for reporting ($20,000 and 200 transactions), but the IRS considered lowering this to include smaller transactions. For the 2022 tax year, the IRS planned to lower the 1099-K threshold to $600, regardless of transaction count.However, the IRS postponed this change to the 2023 tax year, and then again delayed it.[11:22 - 18:05] E-filing Changes for 2023 ReturnsChristina discusses the significant e-filing changes for the 2023 tax year.She also shares the challenges of e-filing independently and the advantages of using a provider like Tax Bandits, which specializes in e-filing forms all year round.Key considerations when choosing an e-file provider include their ability to support the volume of forms, provide necessary forms and corrections, offer team coordination features, and deliver strong customer support.[18:05 - 19:59] Conclusion and Final ThoughtsQuotes:"The e-file threshold has been reduced from 250 forms to 10 forms... It's a huge change, it's a big reduction and it's going to affect a lot of businesses, even the smallest businesses."  - Christina Wright"E-filing... makes everything easier and it's cost-effective. It's not something that's going to break the bank."- Mike Jesowshek, CPAConnect with Christina Wright!Email: christina@spanenterprises.comTaxBandits: https://www.taxbandits.com ______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/

Do you want to learn more about Corporate Transparency Act and how it can benefit your business? In this episode of the Small Business Tax Savings Podcast, Mike welcomes John R. Strohmeyer. John is an attorney providing legal services covering Estate Planning & Probate, Tax: Business and International, and Business / Corporate. After working for law firms for nearly nine years, I started Strohmeyer Law so that I could bring what I learned about client service from the Four Seasons to the legal industry. John covers what information needs to be reported such as legal names, dates of birth, residential addresses, identifying documents, and photocopies of those documents.Tune in now and hear John explains potential penalties for not filing and remind people to get this done ahead of time![00:23] Corporate Transparency Act ExplainedMike welcomes John R. Strohmeyer to the show!Today's topic is, “Cracking the Code: Corporate Transparency Act Explained for Small Business Owners”       John is an attorney providing legal services covering Estate Planning & Probate[04:14] What Is The Purpose Of The Corporate Transparency ActWhat is the purpose of the Corporate Transparency Act?The government requires information on beneficial owners, senior officers, and people with substantial influence on entitiesTrusts and general partnerships are exempt from filingWhat are the exemptions for entities?[13:16] Understanding How The Corporate Transparency Act Can Help Your BusinessPenalties for willful failures are 500 per day and potential criminal penaltiesHonest mistakes may be exempt from penaltiesWhen will the Corporate Transparency Act take effect?Changes in beneficial owners must be reported within 30 days[24:33] Closing SegmentJohn shares where listeners could learn more about the Corporate Transparency Act!Final WordsKey Quotes“When a new client comes in and says, “Hey, I want an LLC.” Great. Until we have all of your information and it's ready to file. Once you've got it, we'll be able to nail all of your other Corporate Transparency Act requirements so you don't have to think about it. And until those beneficial owners change or some of their information changes, there's nothing else to file.” – John R. Strohmeyer______Connect with John through his:Website: Strohmeyer LawLinkedIn: @johnthelawyerFacebook: John StrohmeyerTwitter: @johnthelawyer______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

How can you create an effective business plan and pay the least amount in taxes possible? In this episode of the Small Business Tax Savings Podcast, Mike welcomes Brandon White and discusses the 11 slides needed for a successful back of the Napkin Business plan. They provide tips on crafting an elevator pitch to understand team funding needs and provide a summary slide. Owners stay organized and concise when creating their business plans. Brandon emphasizes how critical it is to have a strong team in order to scale your business and succeed. Market size, competitive landscape, financials, and more that are critical for small businesses.Tune in now and hear Brandon and learn how to create an effective business plan that will help you grow your business and pay the least amount in taxes as legally possible![00:56] What Are The Traits To Look For In Your Small Business TeamMike welcomes back his guest, Brandon White!Today's topic is, “Team, Funding, and Summary”[03:56] How To Make Your Business More Valuable And Easier To ManageThe core team should include, a board of directors, advisors, and ambassadors/influencersSelf-reflection and judgmentHonesty with themselves and othersThey should have the tenacity and be willing to challenge authority[10:30] Delegation Is Key To Making Your Business More ValuableBusiness exit planning makes business more valuableDelegation is key in order to make life easierThe business will never scale if it relies on one personFinancials determine funding needs[18:14] Closing SegmentBrandon teaches listeners how to create an effective business plan and pay the least amount in taxes!Final WordsKey Quotes“I've learned that you actually want the board members to work for you. You don't want to just report to them, you actually then want them working for the company, and you are likely going to give them some form of compensation. So, figure out who those are.” – Brandon White______Connect with Brandon through his:Website: Brandon C. WhiteLinkedIn: Brandon WhiteYouTube: Edge with Brandon WhiteInstagram: @brandoncwhite______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

What is the importance of researching your competition and managing your financials? In this episode of the Small Business Tax Savings Podcast, Mike welcomes Brandon White and discusses the 11 slides needed for a successful back of the Napkin Business plan. They provide tips on how to create a compelling and concise business plan that will help you save money and grow your business. Brandon dives into creating elevator pitches, problem-solving, market opportunities, go-to-market plans, financials, and more. Discover the importance of understanding your competition in order to succeed in business and find out about the different sources and tools available for researching and analyzing competitors such as SWOT analysis, Magic Quadrant, SEC filings, etc.Tune in now and hear Brandon talk about various funding options, including venture capital or angel investments, getting a loan, or trading stocks![00:22] The Back Of The Napkin To Business PlanMike welcomes back his guest, Brandon White!Today's topic is, “Competition and Financials”The focus on competition to avoid getting blindsided  [02:40] Identifying And Understanding Your CompetitionCompetition can be used as a motivator to help you grow and push your productsCollaboration with forward-thinking competitors to help each other outSoftware company doing 500 million in revenue shows it is possibleSWOT analysis to break apart competition[08:35] Breaking Down Revenue Lines And Optimizing Your Net ProfitIdentify who your competition is and where they are in the marketCash is king and understanding your revenue lines and expenses is keyMarketing should be included to understand how much money you'll make from marketingFigure out funding options beyond venture capitalists or angel investors[16:45] Closing SegmentBrandon talks about various funding options when creating a business plan and growing your business!Final WordsKey Quotes“Identify who your competition is, where they are in the market, which is where you really are going. You may think they're competition and they're not even competition.” – Brandon WhiteConnect with Brandon through his:Website: https://brandoncwhite.com/LinkedIn: https://www.linkedin.com/in/brandonwhite/YouTube: https://www.youtube.com/channel/UCabV9Rcw4MohWvTGr3OTzFwInstagram: https://www.instagram.com/brandoncwhite/?hl=en--------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

How do you create an effective elevator pitch for your business? In this episode of the Small Business Tax Savings Podcast, Mike welcomes Brandon White about their four-part series, “Back of the Napkin to Business Plan and 11 Sides”. Brandon is an entrepreneur with two exists, lots of strikeouts, an angel investor, a former venture capitalist, and worked in Marketing at America Online.He started his professional career in technology as a pioneer on the Internet in 1996 as the Founder/CEO of Worldwide Angler, Inc. Worldwide Angler was recognized as the #1 social networking and e-commerce site for sport fishermen on the Internet. He bought the company back from investors in 2001 and led it to a successful exit a decade later to a large public media company. Tune in now and hear Brandon's advice on creating an effective elevator pitch and how to write your own back-of-the-napkin business plan![00:25] Breaking Down The Market OpportunityMike welcomes back his guest, Brandon White!Today's topic is about the go-to-market plan, traction, and milestones[01:15] How To Determine Your Market Size And Create A Go-To-Market PlanBusiness plans don't have to be 50-pages long, they can be concise and get information across easilyMarket opportunity slide should build from the top down, not bottom upInvestors will dive down into the market size and how much you can getGoogle is a great tool to find industry reports[14:29] Attract, Engage, And DelightPublic company SEC filings have an incredible amount of informationYour go-to-market plan should spell out how you're going to sell, distribute, and get the product to the customerAttract, engage, and delight modelIdentifying market opportunities and having milestones for 12 to 18 months[19:03] Closing SegmentBrandon shares with the listeners how to identify your market opportunities and come up with your go-to-market plan!Final WordsKey Quotes“The business plan is your roadmap. And at some point, you are going to have to make first contact with your market and actually sell into it.” – Brandon WhiteConnect with Brandon through his:Website: https://brandoncwhite.com/LinkedIn: https://www.linkedin.com/in/brandonwhite/YouTube: https://www.youtube.com/channel/UCabV9Rcw4MohWvTGr3OTzFwInstagram: https://www.instagram.com/brandoncwhite/?hl=en--------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

How do you create an effective elevator pitch for your business? In this episode of the Small Business Tax Savings Podcast, Mike welcomes Brandon White about their four-part series, “Back of the Napkin to Business Plan and 11 Sides”. Brandon is an entrepreneur with two exists, lots of strikeouts, an angel investor, a former venture capitalist, and worked in Marketing at America Online.He started his professional career in technology as a pioneer on the Internet in 1996 as the Founder/CEO of Worldwide Angler, Inc. Worldwide Angler was recognized as the #1 social networking and e-commerce site for sport fishermen on the Internet. He bought the company back from investors in 2001 and led it to a successful exit a decade later to a large public media company. Tune in now and hear Brandon's advice on creating an effective elevator pitch and how to write your own back-of-the-napkin business plan![00:22] Back Of The Napkin To Business PlanMike is launching a four-part series with Brandon White on Back of the Napkin To Business PlanBrandon is an entrepreneur with two exits, a former venture capitalist, angel investor, and podcast host[01:12] Creating An Impactful Business PlanHe wrote his first business plan in 1995 which became the largest social networking and e-commerce site for fishermen on the internetA business plan can be broken down into people, market, funding, and productHis mentor advised him to get a product that solves a problem and sell it for more than it costsHaving a good elevator pitch that explains what the company does in an interesting way[08:40] A Step-by-Step Guide To Create A Business PlanA bad elevator pitch is too wordy and includes unnecessary detailsAn elevator pitch should be less than 15 secondsA business plan is needed and not just for first-time business ownersA business plan can be used as a guide for first-time business owners[19:08] Closing SegmentBrandon advises listeners to create an effective elevator pitch and how to write their own back-of-the-napkin business plan!Final WordsKey Quotes“Business isn't as complicated as people want to make it.” – Brandon WhiteConnect with Brandon through his:Website: https://brandoncwhite.com/LinkedIn: https://www.linkedin.com/in/brandonwhite/YouTube: https://www.youtube.com/channel/UCabV9Rcw4MohWvTGr3OTzFwInstagram: https://www.instagram.com/brandoncwhite/?hl=en--------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Are you ready to create a successful business plan for 2023? On this episode of the Small Business Tax Savings Podcast and hear from Mike on how to set up your business for success. This episode dives into the importance of bookkeeping, tax planning, and strategic planning. Learn how to create a perfect scenario, three- and five-year plans, and a list of action items that need to be completed this year. Find out why having an accountability partner is so important in staying motivated and meeting goals, as well as which websites are great resources for finding more information about tax savings. Finally, get tips on tracking progress during regular board meetings and making adjustments as needed.[00:00] Discover How to Achieve Your Perfect Scenario with Strategic Planning ·         Strategic planning in a business is where a business defines its strategy or direction and then makes decisions or plans on how it can get there.·         Determine your perfect scenario: step away from your business for half a day and brainstorm what your perfect scenario would look like in 10-15 years.·         Do your five-year plan, and three-year plan, and determine and implement your 2023 strategic plan.·         Examples of things that may come up during brainstorming session: having your personal residence fully paid off, having a vacation home, working only two to three days per week, having a business profit of a million or 5 million or a hundred thousand dollars, having investments and or savings greater than 5 million, etc.[04:42] Creating a Three- or Five-Year Plan and Annual Strategic Plan for Your Perfect Scenario·         Three- or five-year plan: list of action items and goals to complete in the next three or five years·         Annual strategic plan: specific action items to do this year to start chipping away at future goals·         Examples of action items: hire a social media marketing firm, grow social followers, close new sales, hire staff members, max out retirement accounts, put money into investment/savings account, hire kids and fund their Roth, set up a bookkeeping system, tax planning[08:50] Strategic Planning, Bookkeeping, and Tax Planning·         Take some time to put together a strategic plan for 2023·         Include building out your perfect scenario, three- and five-year plans·         Check back throughout the year during regular board meetings to see progress·         Start researching and learning about tax strategies available to everyday business owners·         Get an accountability partner to ensure sticking with the plan [12:15] Closing Segment Final wordsKey Quotes“The ultimate goal here is to build out a roadmap. A roadmap that's going to take you or lead you to that perfect scenario.” – Mike Jesowshek“This is your opportunity to dream, your opportunity to think of what would things look like if everything was perfect in 10 or 15 years.” – Mike JesowshekResources MentionedBlog Posts: ·         https://www.taxsavingspodcast.com/blog/how-can-i-setup-my-business-for-success-in-2023 --------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax IncSight Packages:

Do you want to set up your small business for success in 2023? On this episode of the Small Business Tax Savings Podcast, we discuss key steps and action items to make sure you are ready to make a major impact. In this episode, Mike discusses how small business owners can set up their businesses for success in 2023. Mike emphasizes the importance of bookkeeping and provides tips on how to do it regularly, keep separate business and personal financial accounts, and maintain accurate records and receipts. Mike also advises creating a budget, reviewing financial statements, and setting goals for the future. Other tips include automating tasks, staying organized, and seeking professional help when needed. [00:00] 3 Key Bookkeeping Tips to Help You Grow and Pay Less in Taxes• Bookkeeping is the backbone to every business and should be done regularly (monthly at a minimum). • Set up a separate bank account and/or credit card for your business and avoid commingling personal and business expenses. • Keep great records and receipts to ensure accuracy in bookkeeping. [04:07] Maximize Your Tax Savings in 2023• Record business expenses as an owner's draw or reimburse yourself• Create a spreadsheet of business expenses on personal accounts• Utilize an accountable plan for personal expenses related to the business• Keep great records and receipts digitally • Consider using cloud-based accounting software • Budgeting is important for understanding your business's financial performance and setting goals [08:07] Start the Year Right• Implement strategies while they are fresh in your mind• Join our tax minimization program or hire a tax strategist• Think about tax planning first, then tax filing and preparation• Strategic planning is important for business success [12:15] Strategic Planning and Tax Savings Tips• Read and listen to the resources that our podcast offer• Take bookkeeping seriously and update it regularly • Don't have any commingling of business and personal items • Keep receipts and documentation • File digitally and keep on file • Research, listen, read, and implement ideas • Put a strategic plan together • Get an accountability partner  [12:59] Closing Segment• Final words  Key Quotes  “Bookkeeping is the backbone to every business.” – Mike Jesowshek “If you keep up with your bookkeeping on a regular basis, you keep business and personal items separate, and you file all necessary documents in a digital file as soon as you receive them, you will have less stress, be on top of your business and pay less in taxes”. – Mike Jesowshek  Resources Mentioned Blog Posts: ·         https://www.taxsavingspodcast.com/bookkeeping  --------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax IncSight Packages: https://incsight.net/pricing/ Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844

On this episode Shannon Weinstein and I have a discussion together.  This is a cross-over episode between our two shows.We discussed:How to decipher good advice online.How to find a professional who's looking out for you.How to educate yourself on these types of complicated topics while also empowering yourself.Competition, how everyone is welcome in this space, and why Shannon and I believe collaboration is so important.Resources MentionedKeep What You Earn Podcast:https://podcasts.apple.com/us/podcast/keep-what-you-earn/id1580071347--------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

On this episode we invited David Price and Zhenya Slack from Delphinus Capital to talk SBA loans. The SBA 7(a) loan program is the most popular and most used type loan of the Small Business Administration's lending program. The loan program is designed to assist small businesses obtain capital with reasonable terms and rates. We discussed:What is an SBA 7(a) Loan?Who is Eligible for an SBA 7(a) Loan?In addition to the traditional SBA 7(a), there are 2 very rare programs that aren't offered through most of the traditional banks. It's through the SBA 7(a) Express Working Capital program.Resources MentionedBlog Posts:https://www.taxsavingspodcast.com/blog/what-is-an-sba-loan--------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Hey Small Business Owners! In this episode, we're going to be talking about what you need to do in order to prepare for the end of the year. Specifically, we're going to be discussing things like salary calculation, charitable contributions, recordkeeping, and maximizing deductions.  Make sure you're doing your homework and getting ready for the end of the year.[00:00] Small Business Tax Tips for Year End• If you're taxed as an S corporation, make sure you're taking a reasonable salary and paying self-employed health insurance premiums.• Before December 31st, be sure to review your year-end tax strategies, including yearend salary and health insurance deductions.• Make sure your payroll provider is aware of any changes to your self-employed health insurance premiums.[04:04] Underlooked Strategies to Increase Deductions• There are specific things that an accountable plan must include in order to be considered valid, such as adding health insurance to your W2 and finalizing reimbursements.• Maximizing deductions can include trading business purchases for tax breaks, but only if the purchase is necessary for the business.• Hiring family members in your business can be a great way to reduce taxes and support them at the same time.[07:44] How to Maximize Business Deductions and Write-Offs• Mike reminds us of some key points to remember before year-end, including establishing or funding a retirement plan and taking care of business gifts.[11:12] Ways to Prepare your Bookkeeping• Make sure you're completing any charitable contributions of either cash or property or goods.• Remember to take advantage of charitable deductions if you're not itemizing, and to complete your bookkeeping up to date.• Start to file various tax documents and receipts as you receive them.[14:51] Essential Planning for Filing Taxes• Make sure you're paying a reasonable salary before year-end. This salary needs to be completed before year-end.• If you're thinking about funding a set IRA or a solo 401k, make sure you're factoring that into your salary calculation.[18:09] Closing Segment• Final wordsKey Quotes“When we talk about maximizing deductions, we're not necessarily talking about going out and buying things you don't need. But rather, we're talking about how can we move after-tax spending money that you're already spending.” – Mike JesowshekResources MentionedBlog Posts: https://www.taxsavingspodcast.com/blog/what-is-a-reasonable-compensation-for-an-s-corporation-ownerhttps://www.taxsavingspodcast.com/blog/how-does-the-deduction-for-self-employed-health-insurance-workhttps://www.taxsavingspodcast.com/blog/why-should-i-hire-my-kids-in-my-business https://www.taxsavingspodcast.com/blog/how-can-i-maximize-business-deductions-and-write-offs-------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax IncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsa

It is important to pay yourself as an owner, but sometimes the process can be messy and confusing. There are a variety of options available, depending on the type of business entity you have. Certain payroll deductions will reduce your business income, but guaranteed payments are unaffected by profit or loss. In this episode, Mike discusses ways to pay yourself from your business and what requirements must be met to do so. He also dives into how to save money on taxes through proper accounting and salary deductions. [00:00] How to Pay Yourself as a Business Owner: An Overview·         An owner's draw is not considered a business expense and therefore does not reduce your business profit.·         Payroll requires doing payroll tax withholdings, form filings, and making payments to various government agencies.·         Payroll is a business expense that reduces your business income. [04:11] Owner's Draw, Guaranteed Payment, or Dividend·         Paying yourself as an owner via payroll is an expense to your business, but it's gonna be reported on your tax return as income.·         A dividend is a rarer way to pay yourself as a business owner and it's similar to an owner's draw distribution but oftentimes requires some extra year-end paperwork.·         With a sole proprietorship or single-member LLC, paying yourself via an owner's draw is the simplest way to do it [11:49] How to Pay Yourself Before Year End•       If you're operating as a sole proprietorship or single-member LLC, you'll pay yourself with an owner's draw or distribution. •       If you're operating as a partnership, you'll pay yourself as an owner's draw and/or guaranteed payment. •       If you're operating as an S corporation, you'll pay yourself with both distribution and payroll. [16:00] Strategies for Saving on Taxes•       Some strategies include paying yourself a reasonable salary, taking a salary from your business, and running an S corporation correctly.   Key Quotes “Always remember with a pass-through entity, you are taxed on the profit of your business regardless of how much money you leave in or take out of that.” – Mike Jesowshek   Resources Mentioned ●     Accounting software: https://gusto.com/●     Bookkeeping blog article: https://taxsavingspodcast.com/bookkeeping. --------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax IncSight Packages: https://incsight.net/pricing/ Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com 

Understanding what your business entity is will allow you to take advantage of tax strategies and maximize your deductions. In this episode, we talk about what are the different types of business entities and how they are taxed.[01:01] The Types of Business EntitiesNo Entity or Sole ProprietorshipLimited Liability CompanyC CorporationAn S Corporation is not an entity at the state level but a tax election [02:37] What is a Pass Through Entity?Most small businesses do not pay federal income taxes at the corporate levelThe profits from their business pass through to the owners of the company where it is then taxedThis includes a Sole Proprietor, an LLC, or an S CorporationA C Corporation is not considered a pass through because the company pays taxes on the profit of the business at the corporate level[04:04] Where Do You Report Your Business Activity and How Is Your Business Income Taxed? Sole Proprietorship or Single Member LLC (No S Corp Election) File your business information on a Schedule C on your personal tax return (Form 1040) You will pay both ordinary income taxes and self-employment taxes on the business profit on your personal returnPartnership or Multi Member LLC (No S Corp Election) File your business information on Form 1065Each partner will then receive a K1 with their share of activity which will be used to report on their personal tax return (Form 1040)Each active partner will pay both ordinary income taxes and self-employment taxes on their share of business profit on their personal return S CorporationFile your business information on Form 1120SEach owner will receive a K1 with their share of activity which will be used to report on their personal tax return (Form 1040)Each active individual owner will pay ordinary income taxes on their share of profit on their personal tax returnC CorporationFile your business information on Form 1120The corporation will pay corporate taxes on the income of the business on the corporate level [08:40] Final ThoughtsIt's so important to understand how your business entity is structured to get clear on how it's taxedKey Quote“With a pass through entity, you are taxed on the profit of the business regardless of how much money you leave in or take out of the business.” - Mike Jesowshek Resources MentionedBlog Posts:https://www.taxsavingspodcast.com/blog/how-is-my-business-entity-taxedhttps://www.taxsavingspodcast.com/blog/earned-income-how-is-my-income-taxedhttps://taxsavingspodcast.com/scorp --------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

So many business owners for far too long have been told that they need to go out and buy things in order to lower their taxes. In this episode, we want you to change your way of thinking and maximize deductions and write-offs. We dig deep into concepts you need to know and steps you need to take. [01:09] Pre Tax vs. After Tax DollarsAfter tax dollars: money that you spend after it's been taxed Pre tax dollars: spending done prior to the money being taxed This is spending that you do within your business prior to them being taxed Strategize on how you can find after tax dollars that can be moved to pre tax dollars[03:32] What Can You Deduct as a Business Expense?In your business, you will have ordinary and necessary expenses that you can deduct when filing your taxesOrdinary expenses: common and accepted expenses in your industryNecessary expenses: expenses that are helpful and appropriate in operating your small business [04:57] What Are Examples of Business Expenses?Here's a list of common business expenses[06:56] Maximizing Business Deductions and Write-OffsHow can you move spending that you are already doing from after tax spending into pre tax spending by finding a business purpose?Go through your personal credit card statement and see if you can find a business purpose to spending that you have already doneUtilize an accountable plan to reimburse yourselfFor every spending, ask yourself, "Is there a business purpose for this?" and if so, run it through the business and get a pre tax deduction for it[09:27] What Do I Need to Document When Maximizing Deductions?Talk with your tax professional before acting to ensure it's valid in your line of businessHave a separate bank account (and credit card) for your businessKeep records and receiptsDon't be greedy[13:00] Final ThoughtsDon't be afraid to take advantage of the tax law the way it's written for youKey Quote“We always want to be thinking about how can we move after tax spending, spending that we're already doing, finding a business purpose to it, and move it to pre tax spending.” - Mike Jesowshek Resources MentionedBlog Posts:https://www.taxsavingspodcast.com/blog/how-can-i-maximize-business-deductions-and-write-offs https://www.taxsavingspodcast.com/blog/how-do-i-reimburse-myself-from-the-business-when-does-an-accountable-plan-come-into-play The Ultimate List of Business Deductions Free Ebook:https://www.taxsavingspodcast.com/deductions  --------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Using a car for your business comes with expenses but it also has tax deduction benefits. In this episode, we break down everything you need to know before you decide to buy or lease a business vehicle and how you can take a tax write-off and save money.[02:27] Should I Buy or Lease a Vehicle?How often do you expect to drive it? If you're going to be driving a lot of miles, a lease might not be a good optionHow long do you plan to keep it?A lease is better if you always want a new vehicleHow much do you want for your monthly payment? Lease payments are generally less than a loan[04:45] Should I Put the Vehicle Under My Personal Name or Business Name?Find the Business Use Percentage (BUP) = Business Miles / Total Miles If the vehicle is going to be used for business (>50%), it is recommended to put it in the business nameIf the vehicle is going to be used for personal (>50%), it is recommended to put it in your personal nameS or C Corp: use an accountable plan to reimburse yourselfSole Proprietor or Single Member LLC: include the business use on the Schedule C filing [08:41] How Do I Write Off a Business Vehicle?Mileage Method: you get a specific tax deduction per mile drivenIf you use the vehicle for business less than 50% of the time, you must use this method Actual Method: BUP x Total Actual Expense If you use the actual expense method, you cannot also use mileage deduction When disposing of a purchased vehicle, you will have a gain or loss depending on the basis of the vehicle[13:17] How Does Depreciation of a Business Vehicle Work?If Gross Vehicle Weight Rating is more than 6,000 pounds: you can write off 100% with bonus depreciationIf GVWR is 6,000 pounds or less: you can write off up to $19,200 in 2022 if you buy it and place it in service before year-end[16:39] Final ThoughtsAlways keep a mileage log and track all of your expensesKey Quote“If you're going to have a business vehicle, make sure you record your mileage, track it, do all that extra legwork you need to do to prove the business use of that vehicle.” - Mike JesowshekResources MentionedBlog Posts:https://www.taxsavingspodcast.com/blog/how-do-i-write-off-a-business-vehiclehttps://www.taxsavingspodcast.com/blog/what-do-i-need-to-know-about-purchasing-deducting-and-depreciating-a-business-vehicle  Podcast Episode:https://podcasts.apple.com/us/podcast/accountable-plan-importance-expense-reimbursement/id1377376636?i=1000451160618 --------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Health care matters not just for you but also for your business. In this episode, we examine how employers can set up medical plans based on their business structure and what strategies to apply to save on taxes.[01:28] Self-Employed Health Insurance DeductionIf you're self-employed, you will always get a business deduction for the health insurance costs that you incurFor Sole Proprietorship or Single Member LLC: deduct self-employed health insurance premiums on Schedule 1 of your personal tax return (1040)For S Corporation Owner: Have the S Corp pay for the insuranceAdd it to your W2 payroll as S Corp owner self-employed health insurance. Your payroll provider should know how to handle this.Deduct on your personal tax return (Schedule 1) If you are providing health insurance for non-owner employees, include those on their W2, in Box 12 with code DD[04:21] Options Available to Business Owners With High Medical CostsYou can utilize a Section 105 plan to turn personal medical expenses into a business deduction and be able to reimburse employees for medical costs incurred[06:16] Options are Available for Small Businesses With EmployeesSome options are: group health insurance, increased wages, HRA or QSEHRAFor small businesses with less than 50 full-time  employees that don't offer a group health insurance policy:With a QSEHRA, employers reimburse employees tax-free for medical expensesYou can offer yearly allowances of up to $5,450 for single employees and $11,050 for employees with a family[10:27] What Is An HSA and How Do They Work?If you contribute to an HSA, withdrawals are tax-free when used for qualified medical expenses and interest or earnings are NOT taxed The maximum you can contribute to an HSA for 2022 is $3,650 for self-only or $7,300 for familiesAn HSA is a great savings vehicle because there is no tax on the interest or gains earned within it[13:00] Final ThoughtsStart thinking about these health insurance options and be on top of tax planningKey Quotes“Taking care of your health is so important, and oftentimes as a busy professional, that's something that gets put to the side. And so there's also tax planning that comes into play when we talk about various aspects of health.” - Mike Jesowshek“I was afraid to bring employees simply because of this little piece of medical. I was afraid would cost too much. But there are options out there.” - Mike JesowshekResources MentionedBlog Posts:https://www.taxsavingspodcast.com/blog/what-health-related-tax-strategies-should-i-consider-for-2022 https://www.taxsavingspodcast.com/blog/how-does-the-deduction-for-self-employed-health-insurance-work --------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com