Small Business Tax Savings Podcast

Starting an LLC can be rewarding, but common mistakes can lead to costly consequences. Mixing personal and business finances could raise IRS flags. Missing annual reports might dissolve your LLC, while omitting 'LLC' from documents can leave you personally liable. Entrepreneurs must correctly register in states and maintain proper records to protect themselves and unlock tax benefits. Decisions should involve all members to prevent conflicts. Learn how to avoid these pitfalls for a successful business journey.

The discussion dives into the potential impact of Trump's tax changes on small businesses, focusing on tax provisions set to expire in 2025. Key points include the risk of higher individual tax rates and the shrinking of the standard deduction. Parents could lose significant benefits from the reduced Child Tax Credit. There's a looming threat for small business owners concerning the QBI deduction and the changes to bonus depreciation policies. The complexities of new tax relief measures are also explored, urging awareness among business owners.

Thinking about transitioning from a C Corporation to an S Corporation? Be wary of the Built-In Gains (BIG) Tax, which could cost you significantly if not planned correctly. Discover how this tax prevents double taxation and the conditions that trigger it. Learn to calculate the BIG Tax using fair market value versus adjusted basis. Explore smart strategies like holding onto assets for five years or timing sales after losses to minimize taxes. Don't navigate this complex tax landscape without the right knowledge!

Dive into advanced tax strategies to minimize your tax burden. Discover how to maximize retirement contributions with solo 401(k) options. Learn the differences between owner draws and payroll for S corporations. Understand how to properly document home office deductions and board meeting expenses. Explore the nuances of converting a C corporation to an LLC while addressing common tax concerns about 1099 forms and mileage expenses. Finally, tackle listener questions to clarify the path to smarter tax planning for small businesses.

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

In this engaging discussion, retirement expert Matt Ruttenberg from LifeInk Retirement Services shares invaluable insights on optimizing retirement contributions for tax savings in 2024. He emphasizes key deadlines for both individual and employer contributions, shedding light on strategies like solo 401(k)s and profit-sharing plans. Matt explains how understanding these rules can drastically reduce tax liabilities. He also highlights the importance of early planning and the benefits of working with professionals to maximize retirement benefits.

Discover how to prepare for a financially thriving 2025 by creating a comprehensive financial summary document. Learn the crucial differences between tax preparation and strategic tax planning to minimize liabilities. Explore the power of long-term strategic business planning, envisioning your perfect future and breaking it down into manageable goals. Gain insights on leveraging government incentives and actionable resources to ensure clarity and purpose in achieving your financial aspirations.

Send us a textAre you prepared for the IRS’s new 1099-K reporting rules and how they could impact your business's bottom line?In this episode, Mike Jesowshek discusses the significant changes to the IRS 1099-K rule and its potential impact on small businesses, freelancers, and online sellers. The rule, initially requiring payment processors to report income over $20,000, is being gradually lowered to $600 by 2026. Mike explains how this rule aims to address underreported income and outlines the implications for businesses accepting payments via platforms like PayPal, Venmo, and Stripe. He emphasizes the importance of accurate reporting to avoid IRS scrutiny and offers a free demo call to help listeners prepare their tax strategies.[00:00 - 06:42] Why the 1099-K Rule Was IntroducedMike discusses the significance of the 1099-K for freelancers, small businesses, and gig workers.Understanding this rule is key to avoiding surprises during tax season.The motivation behind the rule: addressing underreported income from goods and services.Report all income accurately, even without a 1099-K.[06:43 - 10:37] Who This Rule ImpactsMike dives deep into who’s affected: freelancers, gig workers, and small businesses.Proactively distinguish between personal and business transactions.[10:38 - 14:22] Timeline and Rollout of the RuleBreakdown of the phase-in thresholds:2024: $5,0002025: $2,5002026: $600Mike highlights potential changes due to legislative pushback.Stay updated on the latest developments and adapt your approach.[14:23 - 18:58] Avoiding Tax Issues and Next StepsMike shares tips for accurate reporting and reconciling 1099-K forms with your tax returns.Be proactive in managing your taxes to avoid penalties and ensure compliance.Direct Quotes:“The 1099-K is a tool to let the IRS know what funds are being processed and who is receiving those funds.” - Mike Jesowshek, CPA“This rule isn’t about changing how taxes work; it’s about changing how income is reported.” - Mike Jesowshek, CPA“Don’t wait for a 1099-K to report your income. Always report all earnings to stay on the right side of the law.” - Mike Jesowshek, CPA______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