Small Business Tax Savings Podcast

Have you ever wondered how to structure your multiple business ventures efficiently while minimizing your tax burden? Mike Jesowshek delves into the complexities of business structuring, particularly for individuals owning multiple businesses or in partnership. He emphasizes the utility of S Corporations in reducing self-employment taxes and the importance of establishing a parent S Corporation to streamline business operations, financial management, and tax filing. Mike advocates for separate bookkeeping for each entity, despite their consolidation under the parent S Corp, to maintain clarity in financial and legal aspects.[00:00 - 04:20] Introduction to Business Structuring and Exploring S Corporation ComplexitiesMike Jesowshek discusses the importance of structuring for business owners with multiple ventures or partnerships. He introduces the concept of S Corporations and their benefits.Mike elaborates on the complexities and requirements of maintaining S Corporations, like payroll and tax filings.[04:20 - 07:03] Structuring for Operational EfficiencyThe conversation shifts to operational structuring, emphasizing separate bookkeeping for legal and financial clarity.Mike stresses the importance of having a singular parent S Corporation owning other businesses.[07:03 - 11:32] Tax Considerations and Partnership StructuresWhat are the tax implications and structuring options for partnerships?Mike discusses different scenarios where S Corporations can benefit or complicate partnership arrangements.[11:32 - 20:09] Practical Tips and ConclusionMike shares his concluding thoughts on business structuring with a focus on legal consultation and tax efficiency.He wraps up by encouraging listeners to plan their business structure mindfully and consult professionals.Direct Quotes:"When we talk about S Corporations, obviously the goal is to minimize self-employment taxes, but S Corps comes with some complexities as well." - Mike Jesowshek, CPA"We want to have one company that we're actively participating in running through with all of our income before touching us. And we want that company to be in most cases, an S corporation." - Mike Jesowshek, CPA______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings 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 perplexed by estimated taxes and worried about potential penalties? Discover how to navigate the U.S. tax system's pay-as-you-go approach and strategically plan your payments to stay on top of your tax obligations!In this episode, Mike Jesowshek discusses the importance of understanding and paying estimated taxes in the U.S., emphasizing the "pay as you go" system. He explains the concept of estimated taxes, key due dates for each quarter, and the significance of making timely payments to avoid penalties and interest. Mike introduces the "safe harbor" rule, which helps taxpayers avoid penalties if they pay a certain percentage of their previous year's tax or their current year's expected tax liability.[00:00 - 01:21] Introduction to Estimated TaxesMike Jesowshek introduces the topic of estimated taxes, explaining the pay-as-you-go system and upcoming deadlines.[01:21 - 02:45] The Mechanics of WithholdingMike discusses how withholding works for W-2 employees and the responsibilities of business owners for making tax payments.[02:45 - 04:32] Year-End Reconciliation and Tax RefundsWhat is year-end tax reconciliation and what are the misconceptions about tax refunds?  [04:32 - 06:28] Estimated Tax Due Dates and PaymentMike clarifies the quarterly tax payment due dates and the reasoning behind them.[06:28 - 10:50] Safe Harbor Rule and Calculating Estimated TaxesMike talks about the safe harbor rule, how to calculate estimated taxes and the differences based on adjusted gross income.[10:50 - 17:06] Actual Method and RecapWhat is the actual method for calculating estimated taxes and the importance of planning for fluctuating business income?Direct Quotes:"A refund doesn't mean you saved money on taxes; it's just saying you paid too much in taxes throughout the year." - Mike Jesowshek, CPA"Estimated taxes are the way that business owners can make payments against that future tax bill as they're earning money." - Mike Jesowshek, CPA______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings 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 

We’re thrilled to invite you to our complimentary webinar, “Slash Your 2024 Taxes: Essential Strategies for Small Business Owners.” Join us for a session packed with valuable insights to minimize your tax bill.Topic: Slash Your 2024 Taxes: Essential Strategies for Small Business OwnersDate: Wednesday April 24, 2024Time: 2pm ESTSign-Up: https://www.taxsavingspodcast.com/slashtaxesIn this webinar, you’ll learn how to:Maximize Deductions: Identify and claim all the deductions you’re entitled to.Strategic Tax Planning: Structure your finances to optimize tax benefits.Experience Top Tax Strategies: Learn about the incentives the IRS gives small business owners so you can implement them. Interactive Q&A: Get answers from tax experts to your specific questions.This is a must-attend event for any business owner eager to keep more of their hard-earned money. Register now for free and ensure your spot in this transformative session!As always, our goal is to ensure you pay the least amount in taxes as legally possible!Sign-Up: https://www.taxsavingspodcast.com/slashtaxes

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 

Curious about how real estate can help you grow your wealth and save on taxes?In this episode, Mike Jesowshek discusses how real estate can serve as a tool for both wealth-building and tax savings. He emphasizes the concept of depreciation, whereby the cost of a rental property can be deducted over time, and explains how this, along with other operating expenses, can offset rental income. He also delves into strategies for utilizing passive losses to offset ordinary income, such as qualifying as an active real estate investor or a real estate professional. Additionally, he touches on the "short-term rental loophole" and the importance of considering exit strategies when selling real estate investments.[00:00 - 05:21] Introduction and Overview of Real Estate Tax PlanningReal estate serves as a powerful tool for both wealth-building and tax savings.Depreciation allows the gradual deduction of the purchase price of a rental property over time.Operating expenses, including utilities and real estate taxes, can also offset rental income.An active real estate investor status allows for a maximum deduction of $25,000 to offset ordinary income.[04:00 - 13:41] Utilizing Passive Losses and Short-Term Rental LoopholePassive losses from rental properties cannot directly offset ordinary income but can be carried forward.The short-term rental loophole allows losses from short-term rentals to offset ordinary income under certain conditions.[13:41 - 17:09] Considerations for Business Owners in Real EstateBusiness income in real estate is considered active income and requires different tax strategies.An S Corporation can be beneficial for business owners earning over a certain threshold.[17:09 - 25:51] Exit Strategies and ConclusionExiting real estate investments may trigger taxes, but strategies like 1031 exchanges can defer tax liability.Quote:"Don't get into real estate for tax savings. Get into real estate to grow your wealth and then experience the benefit of tax savings that comes with real estate as that cherry on top." - Mike Jesowshek, CPA______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings 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 

Ever wondered if your global business ventures could be affecting your U.S. taxes more than you realize? In the podcast episode, Mike Jesowshek delves into the intricacies of foreign income for small business owners, covering essential aspects such as reporting requirements, types of foreign income, tax treaties, exemptions, the foreign earned income exclusion, the foreign tax credit, and compliance with reporting obligations. He emphasizes the importance of U.S. citizens and residents reporting worldwide income on their U.S. tax returns, regardless of where the income is earned. Mike also discusses strategies to mitigate double taxation, such as utilizing tax treaties and claiming foreign tax credits or income exclusions, while underscoring the critical nature of maintaining accurate records and understanding compliance requirements to ensure transparency and adherence to tax laws.[00:00 - 05:00] Introduction to Foreign Income for EntrepreneursMike Jesowshek introduces the topic of foreign income reporting for small business owners.Discussion on the requirement for U.S. citizens and residents to report worldwide income.[05:00 - 10:00] Tax Treaties, Exemptions, and Foreign Earned Income ExclusionExplanation of tax treaties and exemptions to avoid double taxation.Details on the foreign earned income exclusion, including eligibility criteria.[10:00 - 15:18] Compliance and Reporting RequirementsOverview of the compliance and reporting requirements for U.S. taxpayers with foreign income or assets.Explanation of FBAR reporting requirements for individuals with foreign bank accounts or financial interests.Quote:"There might be a credit, there might be some exclusion of it, there might be some exemptions, but the IRS wants to know about it." - Mike Jesowshek, CPA______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings 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 

In this episode, Mike Jesowshek answers various listener questions regarding tax strategies, S corporation elections, hiring children for tax benefits, and setting up retirement plans for businesses with non-owner employees. The episode emphasizes the importance of structuring businesses correctly to maximize tax savings, including the considerations for S corporation status, late elections for business structures, the benefits of hiring family members, and the intricacies of purchasing a business and tax implications. Mike also discusses the potential of setting up retirement plans for employees as a tax-advantageous move for small businesses.[00:00 - 00:36] Introduction to Q&A Session[00:36 - 10:10] Q&A with Mike Jesowshek, CPA part 1Mike discusses the permanence of S corp elections and the possibility of revoking them.He explains the conditions under which a late S corp election can be made for businesses already in operation.Employing your children in your business for tax advantages has benefits.Mike discusses the tax implications of seller-financed business purchases and the importance of understanding the nature of the purchase (asset vs. stock sale).How the capitalization policy for items under $2,500 affects tax deductions.[10:10 - 23:50] Q&A with Mike Jesowshek, CPA part 2Owning multiple LLCs under one holding company can simplify tax filing and considerations for asset protection.Separating entities based on active participation versus passive income sources, such as rental properties is important.Mike gives an overview of retirement plan options for small businesses and the tax benefits associated with offering them to employees.What is the best setup for businesses operating between California and Florida?Mike’s advice on consolidating tax filings for multiple LLCs under a Wyoming LLC, emphasizes the need for legal advice on asset protection.What about hiring young grandchildren and its tax implications?Setting up a separate LLC for Airbnb or furnished property businesses.What are the tax benefits and options for setting up retirement plans for small business employees?[23:50 - 24:14] Closing SegmentDirect Quotes:"Hiring your kids is potentially a great way where you can get a business deduction and they pay no income taxes on that income, again, potentially." - Mike Jesowshek, CPA"You cannot save taxes by simply learning tax strategies. You save taxes when you learn them and then you implement them." - Mike Jesowshek, CPA"If you're starting a new business, start that business where you're operating. That's going to be the easiest piece." - Mike Jesowshek, CPA______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings 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 

Did you know there are still tax-saving strategies you can implement after the year has ended? In the episode, Mike Jesowshek focuses on tax strategies that entrepreneurs and business owners can implement post-year-end to optimize their tax positions. He covered various aspects, including making contributions to retirement plans (both traditional and Roth IRAs, as well as employer contributions to plans like SEP IRAs and solo 401(k)s), the importance of completing bookkeeping to not miss out on potential deductions and maximizing business deductions like home office and automobile expenses. Additionally, Mike highlights the value of health savings accounts as a tax-advantaged tool and the critical deadlines for making contributions or taking deductions to apply for the 2023 tax year.[00:00 - 05:07] Retirement Tax Strategies After Year-EndTraditional IRAs or Roth IRAs are standard retirement accounts available to both business owners and non business owners. You can contribute to a Traditional IRA or Roth IRA until your tax filing date or due date (Not to Exceed April 15). You can contribute until your tax filing date including extensions to the employER contribution portions.[05:07 - 10:27] Tax Strategies After Year-End for Business OwnersGo through all of your spending for the year with a fine tooth comb to see if there are any deductions related to the business that can be added to the bookkeeping.Do not be afraid to take a valid home office deduction.Mileage in automobile expenses can be included in tax filing.After the tax year has ended, rental property owners are still able to consider conducting a cost segregation study. [10:27 - 15:43] Other Tax StrategiesA Health Savings Account (HSA) is a strategy everyone should be utilizing and maxing out if they qualify and have the funds available to do so.You do not get a tax deduction for Coverdell IRA but when you withdraw from it for qualified education expenses, it is tax-free (including any earnings).Quote:“Health Savings Accounts are almost like a retirement plan on steroids.” - Mike Jesowshek, CPA______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings 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 

Are you wondering if filing separately might be the right choice for your tax situation? In this episode, Mike Jesowshek discusses various aspects of 'married filing separately' tax status, explaining when this filing status could be advantageous. He primarily mentions scenarios such as a high medical expense situation for one spouse, significant student loan debt based on income for one spouse, or a tax lien on one spouse. Though in general, he believes 'married filing jointly' often provides better tax benefits. Mike also highlights the potential downsides to filing separately, such as higher tax rates and the loss of certain tax benefits.[00:00 - 04:13] Married Filing Separately: When does it make sense?Mike emphasizes that advising clients to file separately is rare, but they want to educate on when it does make sense.Key reasons for choosing to file separately:A complete separation of tax liabilityHigh medical expensesIncome-based student loan payments[04:13 - 06:29] The Downsides of Married Filing SeparatelyA key downside highlighted is higher tax rates for those who file separately, potentially leading to a higher overall tax liability.The loss of several tax benefits when filing separately is also possible, including education tax credits, child independent care tax credits, earned income tax credits, and deductions for student loan interest and certain retirement savings contributions.Mike also touches on the potential for double taxation in community property states when filing separately, adding complexity and possibly higher tax preparation fees.[06:29 - 09:10] The Process of Filing SeparatelyEach spouse must complete their own tax returns, including their individual income, deductions, and tax bills.When filing separately, couples must decide who will claim any dependents.If one spouse opts for itemized deductions, the other must also do the same, which can be a disadvantage.Mike shares some example situations where filing separately makes more sense.[09:10 - 15:23] Recap and Final ThoughtsQuotes:"When you file separately, you're separating yourself from that spouse. So the spouse that doesn't have the tax debt doesn't get their refund necessarily taken away." - Mike Jesowshek, CPA"Most taxpayers we talk to are far better off filing jointly instead of separately. But there are some specific cases where separately makes more sense." - Mike Jesowshek, CPA"When you file separately, it doesn't mean that you're having marital issues... We just want to look at what the tax benefit is." - Mike Jesowshek, CPA______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 

Have you ever wondered how tax planning can significantly reduce your business's tax liability compared to just tax preparation? In this episode, Mike discusses the difference between tax planning and tax preparation. Tax preparation is important and required by law. It only involves reporting your business' previous year's activity to the IRS or your state agency. Tax planning, on the other hand, is a strategic activity done throughout the year that can help reduce the amount of tax a business pays. Mike emphasizes that, while tax preparation is mandated by the law, tax planning is crucial for reducing tax liability and increasing business owners' cash flow. He also provides practical approaches on how to implement tax planning, including the importance of continuous learning and strategy implementation throughout the year.[00:00 - 05:04] Tax Planning vs Tax PreparationMike focuses on the differences between tax planning and tax preparation, especially relevant at the beginning of the year.Tax planning is an ongoing process throughout the year, from January to December.Mike addresses common concerns and misconceptions about tax planning, emphasizing that it's about legally saving on taxes.[05:04 - 12:15] The Significance of Tax PlanningMike highlights how the government incentivizes business owners through tax strategies and the positive impact of businesses on the economy.Saving taxes through planning is not cheating the government; it's making use of legal incentives.Not engaging in tax planning is like refusing government-offered benefits.Understanding the law and correctly implementing tax strategies ensures legality.Mike shares how to start with tax planning, including learning about tax strategies through various resources like podcasts, blogs, and YouTube channels.[12:15 - 17:58] Resources for Tax PlanningSee the links below!Quotes:"Our mission is to help small business owners understand the strategies that are available to them, that they can implement in their business, regardless of your business size." - Mike Jesowshek, CPA"Tax planning is not just something that we do once in June and then we're done. No, tax planning is something that's going to be constantly evolving." - Mike Jesowshek, CPA"Learning doesn't save us on taxes. Taking what we've learned and implementing it is what provides us with those tax savings." - Mike Jesowshek, CPA______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/

Can you believe we're already stepping into another year, and with it, another tax season, signaling it's time to gear up, get organized, and make this the easiest tax season yet?In this episode, Mike welcomes us to a fresh year, 2024, and discusses the start of a new tax season. He emphasizes the importance of preparation and provides comprehensive tips for both business owners and individuals on navigating tax season effortlessly. Topics covered include the significance of gathering documents, understanding business versus personal returns, deadlines to mark on the calendar, and the necessity of bookkeeping. He outlines various tax forms and documents one should start collecting for businesses and on a personal level.[00:00 - 03:51] Wrapping Up 2023Mike shares the importance of gathering documents such as receipts, bank statements, and sales.What is the difference between business and personal tax returns?[03:51- 14:19] The Role of Bookkeeping in Tax PreparationThe Importance of Gathering and Organizing DocumentsUnderstanding the Personal Side of Tax Preparation[14:19 - 21:08] Important Tax Filing Due DatesJanuary 16, 2024 January 31, 2024 March 15, 2024 April 15, 2024Quotes:"Bookkeeping is the backbone to your business and provides so many benefits throughout the year.” - Mike Jesowshek, CPA"The last thing that we want you to do is to keep pushing off this idea of bookkeeping." - Mike Jesowshek, CPA"Our goal is to help make this tax season the one that is so easy for you... but it takes some work on your end. You need to put in some effort and you need to get some of these things done as soon as possible." - Mike Jesowshek, CPA______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/

How can business owners effectively plan for retirement while managing the growth and operations of their businesses?In this episode, Mike welcomes back Jeremy Keil, a retirement planning expert from Keil Financial Partners, to discuss the importance of retirement planning for business owners. They explore why business owners, whether they're just starting or have been operating for a while, often neglect retirement planning and the possible consequences of doing so. They discuss aspects such as income from businesses, selling businesses, scenarios they have encountered with various business owners, and misconceptions about Health Savings Accounts (HSAs). They also delve into practical steps and strategies that business owners can implement now to save for retirement, such as maximizing HSA and Roth IRA contributions, setting up retirement plans like simple IRAs, SEP IRAs, and 401ks, and taking advantage of age-weighted profit sharing 401ks and after-tax contributions.[00:00 - 07:21] Retirement Planning for Business OwnersJeremy discusses the importance of considering retirement spending, income maximization, and tax minimization for business owners.They address the tendency of business owners to overlook retirement planning, focusing instead on business growth and operations.The common pitfalls for business owners, such as overvaluing their business or failing to create a business model that functions independently of their personal involvement.Jeremy emphasizes the need for business owners to plan for retirement regardless of their current business success.[07:21- 17:00] Health Savings Account and Other Retirement Saving Strategies for Business Jeremy emphasizes the benefits of Health Savings Accounts (HSAs) for maximizing tax advantages in retirement savings.Advice on maximizing HSAs: contribute the maximum amount possible, and pay medical bills out-of-pocket while saving receipts for potential future reimbursement from the HSA.Business owners should consider Roth IRAs, especially if their income is below a certain threshold, highlighting the opportunity for both individual and spousal contributions.He advises starting small with retirement savings, regardless of business size, and gradually increasing contributions over time.Quotes:"Your investments, you have less control over than all the other places that I mentioned. So we want to focus on the things you can control." - Jeremy Keil"When you're saving into your retirement, you want to get the most tax advantage that you can. And the number one best tax advantage you can get in any account is the health savings account." - Jeremy KeilConnect with Jeremy!Website: www.keilfp.com Podcast: Retirement Revealed Podcast______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 understand how retirement savings for small business owners work?In this episode, Mike welcomes Steven Jarvis, CPA, the host of the Retirement Tax Podcast. Steven provides insight on saving for retirement, especially for small business owners, and discusses the potential tax advantages. Steven also dives into the difference between pre-tax and Roth contributions, and shares tips for managing changes in tax situations in life events such as loss of a spouse or divorce. Lastly, Steven emphasizes the need to take action based on informed decisions to ensure maximum tax efficiency.[00:00 - 05:10] Retirement Savings StrategiesSteven discusses the importance of retirement planning for entrepreneurs, contrasting it with employee retirement plans.There is a need for realistic expectations of business valuation at retirement.Business owners need to update their retirement plans as their business evolves and grows.[05:10 - 12:22] Financial Planning for Business OwnersSteven emphasizes the need for business owners to start thinking about retirement planning and seeking financial advisors.Business owners face complexities and decision-making challenges regarding retirement plans compared to W-2 employees.Steven explores the differences between pre-tax and Roth contributions, including the impact of future tax rates and personal financial situations on these decisions.The importance of understanding and preparing for the tax implications of inheriting IRAs and the differing rules for spouses and non-spousal beneficiaries is covered.[12:22 - 15:50] Tax Implications of Life-Changing EventsSteven talks about the shift in tax filing status and the need for tax planning after the loss of a spouse.The loss of a spouse affects real estate tax strategies, especially when the spouse is a real estate professional.Steven encourages us to focus on emotional healing before tackling financial adjustments.[15:50 - 17:40] Closing SegmentQuotes:"We need to make great decisions and then figure out the most tax efficient way to do that." - Steven Jarvis, CPA"The more typical experience for small business owners is that they spend their whole life working on this business that is going to always be more valuable to them than it's going to be to someone else." - Steven Jarvis, CPA "The IRS rules have changed, but the paperwork needs to catch up with it." - Steven Jarvis, CPA"Part of the reason we do long-term planning is to address some of life's inevitabilities." - Steven Jarvis, CPAConnect with Steven! LinkedInRetirement Tax Strategies Podcast______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/

In this episode, Mike gives listeners an extensive review of tax-saving strategies for their businesses. Topics include the Augusta rule for tax deductions related to board meetings, the advantages of forming an LLC over a sole proprietorship, the benefits of S Corporations at certain profit levels, and the tax implications of hiring family members. Tune in to learn more![01:24 - 04:08] Combining Family Vacations with Board Meetings for Tax DeductionsMike discusses making a family member a board member/advisor and aligning board meetings with family vacations for tax benefits.[04:08 - 06:41] Choosing the Right Business StructureA new small business owner inquires about the choice between an S Corp and a sole proprietorship for tax purposes.[06:41 - 07:32] Utilizing the Augusta Rule for Partners in BusinessThe Augusta Rule is applicable for business partners renting out their personal residences.[07:32 - 10:47] TaxElm: The Comprehensive Tax Software for All Business OwnersMike details the main features of Taxelm, starting with a tax savings blueprint that provides a roadmap of personalized tax strategies and estimated savings.[10:47 - 13:17] Understanding Business Credit Card RewardsUsing business credit card rewards, like flight miles, for personal use does not constitute a business expenditure and is generally not seen as co-mingling.[13:17 - 15:39] Tax Deductions for Property Remodeling in BusinessThe rental agreement is important in determining who bears the remodeling expenses for tax deduction purposes.[15:39 - 17:07] Optimizing Home Office Deductions for S CorporationsMike discusses the general eligibility for home office deductions and the importance of having an accountable plan in place.[17:07 - 19:10] Maximizing Home Office DeductionsThere is a potential to optimize tax structures by consolidating multiple business activities under a single S corporation.[19:10 - 21:01] Hiring Your Child in Your S CorporationThere is a distinction between hiring a child as a 1099 contractor versus a W-2 employee. [21:01 - 25:52] 1099 Requirements, TaxElm, and Hiring Family Members in an S CorporationMike addresses discusses about the tax treatment of expenses paid to a graphic designer, the number of tax-reducing strategies available in the TaxEelm library, and hiring your own children in an LLC S Corp.Quotes:"Every individual in the country can rent out their personal residence for 14 days or less and pay no income taxes on that income." - Mike Jesowshek, CPA"That cleaning company, which is owned by you or your spouse, would pay your children out of there because it's a sole proprietorship." - Mike Jesowshek, CPA______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/

Mike Jesowshek continues his 2-part episode on year-end tax-saving strategies. In this episode, Mike covers specific strategies including hiring your kids for tax benefits, setting up a family management company for S corporations, and funding Roth IRAs for children. He also delves into the advantages of short-term rentals for offsetting income and utilizing health insurance premiums as tax deductions. Additionally, he advises on purchasing necessary business items for depreciation benefits and using a Section 105 plan for high medical expenses. [02:00] The Strategy of Hiring Your KidsRoth IRAs are beneficial for your childrenEnsure compliance and fairness when hiring your kidsHiring strategies for kids over 18[06:30] Understanding State Standard DeductionsMedical expenses and tax deductionsThe short-term rental loopholeMaximizing deductions through purchasesIf you're in startup mode, make a sale before the end of the year.[13:38] The Importance of Bookkeeping and Preparing for 1099 SeasonRushing in January or February will make you miss some deductionsIf you're paying contractors that qualify and need a 1099 sent to them, you're going to need to start prepping those starting January 1st[16:09] Recap and Importance of ImplementationThe Time Is NOW To Start Paying Less In Taxes. Join Our Tax Minimization Program (with Stress-Free Bookkeeping Training)! Join Our Tax Minimization Program Today!Key Quotes:"We talk so much about how learning is so key as business owners, as individuals in general, but implementation is just as important." - Mike Jesowshek, CPA"Hiring your kids, especially those that are under 18 is a great way to get a business deduction and those children potentially pay no income taxes on that income." - Mike Jesowshek, CPA"If you're self-employed and you're paying for health insurance premiums, it's a tax deduction." - Mike Jesowshek, CPA"An HSA is one tool that the IRS does not give out too often. You get a tax deduction going into it, there's tax-free growth and tax-free withdrawals." - Mike Jesowshek, CPA______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/