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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 Kids
- Roth IRAs are beneficial for your children
- Ensure compliance and fairness when hiring your kids
- Hiring strategies for kids over 18
[06:30] Understanding State Standard Deductions
- Medical expenses and tax deductions
- The short-term rental loophole
- Maximizing deductions through purchases
- If you're in startup mode, make a sale before the end of the year.
[13:38] The Importance of Bookkeeping and Preparing for 1099 Season
- Rushing in January or February will make you miss some deductions
- If 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 Implementation
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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
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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
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Podcast Website: https://www.TaxSavingsPodcast.com
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