Small Business Tax Savings Podcast

S Corps, Gym Membership Deductions, Solo 401(k)s, and Family Hires: Listener Q&A with Mike Jesowshek CPA

Aug 14, 2024

Mike Jesowshek, a CPA specializing in tax insights for businesses, dives into key tax strategies for small business owners. He clarifies how S-Corp owners can balance salaries and dividends. Surprising insights emerge about gym membership deductions and the tax benefits of hiring family members. Mike elaborates on structuring solo 401(k)s for couples and automating bookkeeping with efficient software. The discussion also covers accountable plans for LLCs and managing documentation for tax deductions. Tune in for actionable strategies that could save you money!

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00:00 • 11min

Effective Solo 401(k) Structuring and Bookkeeping Automation Insights

Streamlining Bookkeeping with Cloud-Based Solutions

Navigating Tax Deductions and Documentation for Small Businesses

Are you leaving money on the table when it comes to your business taxes? In this Q&A episode, Mike Jesowshek answers your tax questions! From S corporation salary conundrums to the surprising deductibility of gym memberships, Mike provides actionable insights that could save you thousands.

[00:00 - 07:15] S Corp Salaries and Retirement Accounts

Can an S corporation owner take only dividends and no salary?
How to determine a reasonable S corp salary?
Can I start a solo 401k in my side hustle without breaking control group rules?

[07:16 - 13:30] Deductible Expenses and Hiring Family

Is a gym membership with business offices tax-deductible?
How to allocate costs between personal and business use?
What are the tax implications of hiring my teen in a sole proprietorship?

[13:31 - 21:00] Solo 401(k)s and Bookkeeping

What are the contribution options for solo 401(k)s for both spouses?
How to structure businesses for married couples?
Can bookkeeping be automated? What software is recommended?

[21:01 - 26:30] Accountable Plans and Cash Purchases

Do husband-wife-owned LLCs need accountable plans?
How to handle partnership filing in non-community property states?
How to document and prove business purchases from Facebook Marketplace?

[26:31 - 35:00] Tax Deductions and Management Fees

What expenses can self-employed pastors deduct?
Should I set aside taxes based on gross revenue or profit?
What's a reasonable fee for a family management company?

Direct Quotes:

"Don't invest something just for a tax benefit. Like they always say, ‘Don't let the tax tail wag the dog.’" - Mike Jesowshek, CPA

Resources Mentioned:

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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

Join TaxElm: https://taxelm.com/

IncSight Packages (Full-Service): https://incsight.net/pricing/

Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale

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Podcast Website: https://www.TaxSavingsPodcast.com

Facebook Group: https://www.facebook.com/groups/taxsavings/

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