Small Business Tax Savings Podcast

Discover how small shifts in your business structure can set you ahead of 99% of companies. Establishing a solid entity structure, like transitioning to an S Corporation, could unlock significant tax savings. Emphasize the importance of cloud-based bookkeeping for accurate financial management. Learn to use financial data to identify inefficiencies and manage costs effectively. Explore strategies for converting personal expenses into tax-deductible business costs and take advantage of key deductions to maximize savings and fuel growth.

Send us a textWhat if the key to unlocking exponential growth in your 401k is simply reaching $100,000? Could this milestone be the turning point for your financial freedom?In this episode, Mike Jesowshek dives into the concept of why your 401k experiences explosive growth after reaching a $100,000 threshold. He explains the mechanics of compounding interest, the rule of 72, and how starting early can significantly impact retirement savings. Mike also introduces the idea of self-funded retirement accounts, detailing how business owners can leverage them to invest in areas such as real estate or cryptocurrency. He underscores the importance of surpassing the $100,000 mark to unlock greater investment opportunities and financial flexibility, offering practical tips to achieve this milestone efficiently.[00:00 - 06:15] The Power of Compound GrowthMike shares his personal financial journey and why $100,000 is a pivotal milestone for investors.He breaks down the "rule of 72" and how it applies to achieving financial goals.Early and consistent investing accelerates your financial trajectory.[06:16 - 12:10] Why $100,000 is a Game-ChangerMike discusses how hitting $100,000 opens doors to investment opportunities beyond traditional options.Reaching this milestone creates leverage for greater diversification and growth.[12:11 - 16:45] How to Get to $100,000 FasterMike highlights the importance of automating investments and sticking to a long-term strategy.Focus on consistency and discipline to build momentum.[16:46 - 19:24] Final Takeaways and EncouragementMike recaps the importance of achieving $100,000 and how it sets the foundation for future wealth-building.Take the first steps today, no matter where you are in your financial journey.Direct Quotes:"Think of compounding interest like a snowball rolling down a hill—small at first, but it can grow into something massive over time." - Mike Jesowshek, CPA"The rule of 72 gives you a simple formula: divide 72 by your interest rate, and you’ll know how long it takes for your money to double." - Mike Jesowshek, CPA"Starting early with your retirement savings means you’re giving your money more time to work for you, doubling multiple times before retirement." - 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 

Learn how to maximize HSA contributions even late in the year! Discover the pros and cons of structuring multiple businesses and employing family members. The episode also dives into vehicle deductions, the Employee Retention Tax Credit, and year-end tax planning strategies. Mike Jesowshek emphasizes practical implementation of tax strategies tailored to individual needs. Don't miss out on essential tools like Taxelm for deeper insights into navigating the complexities of small business taxes!

Discover the intriguing world of tax loss harvesting and how it can turn your investment losses into savings. Learn to offset your capital gains by strategically selling underperforming assets. Delve into the crucial wash sale rule and avoid common pitfalls that could jeopardize your deductions. Gain insights on maximizing your tax efficiency while navigating the complexities of these regulations. Plus, uncover tailored strategies to consider for cryptocurrency investments and smart tax management.

Maximize your tax savings with strategic year-end planning! Discover how to use income projections to make informed spending decisions, such as prepaying expenses or delaying income. Learn the benefits of using flow-through entities to manage profit impact on taxes. Uncover advanced techniques like Roth conversions in low-income years and utilizing appreciated stock for family support benefits. By mastering timing and deductions, business owners can significantly reduce tax liabilities!

Send us a textAre you making the most of your tax-saving strategies before the year closes?In this episode, Mike Jesowshek provides a comprehensive checklist of essential tax strategies to implement before the end of 2024. As a CPA and founder of Tax Helm, he emphasizes maximizing tax deductions, making necessary payments, and properly documenting strategies to avoid IRS issues. Mike covers everything from pre-tax versus after-tax spending and utilizing the Augusta Rule to managing self-employed health insurance and year-end retirement contributions. With a focus on practical application, he also offers advice on planning for business expenses, using credit cards strategically, and the importance of completing necessary documentation, like the BOI report, before December 31st.Discover practical steps to keep more of your hard-earned income in this essential episode![00:00 - 05:10] Pre-Tax vs. After-Tax SpendingMike gives a reminder that most tax strategies must be implemented by December 31.He explains how business owners can convert personal spending to business expenses.Utilize pre-tax spending opportunities for valid business expenses like meals, travel, and more.[05:11 - 11:45] Travel, Augusta Rule, and Implementing Board MeetingsBusiness-focused travel, where the majority of the day is spent on work, can qualify as a deductible business day.The Augusta Rule allows homeowners to rent their home tax-free for up to 14 days.Mike shares the importance of board meetings for accountability and tax deductions.Even solo business owners can benefit from holding board meetings and documenting them.[11:46 - 19:20] Hiring Your Kids, IRAs, and Health Savings AccountsHiring children allows for tax-free income for children and provides eligibility for Roth IRA contributions.HSAs offer tax-deductible contributions and tax-free withdrawals for medical costs.[19:21 - 230:20] S Corporations and Self-Employed Health InsuranceHealth insurance premiums must be included on W-2s for valid deductions.Mike gives a reminder to organize receipts, log business mileage, and complete the BOI report.Proper documentation ensures compliance and peace of mind during IRS reviews.Direct Quotes:“Let this serve as your final reminder—implement these strategies by December 31st to keep your hard-earned money.” - Mike Jesowshek, CPA “A valid tax strategy, incorrectly implemented, becomes illegal. Understanding and correct implementation are key.” - Mike Jesowshek, CPA “Hiring your kids in your business not only provides a tax deduction but allows them to start growing a tax-free retirement account.” - 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 

Send us a textAre you overpaying on taxes and missing out on key deductions that could boost your business's bottom line?In this episode, CPA Mike Jesowshek shares advanced tax strategies that empower business owners to significantly reduce their tax liabilities while building wealth. Mike addresses common challenges business owners face when minimizing taxes and introduces actionable tactics such as the 14-day home rental rule, implementing an accountable plan, and leveraging charitable contributions. With a focus on proper documentation and compliance, Mike provides insights on transforming potential tax burdens into effective deductions. He also presents TaxElm, a tax software tailored for business owners looking to maximize tax savings efficiently and responsibly.[00:00 - 05:36] Introduction to Advanced Tax StrategiesMike introduces his goal to reveal tested tax strategies for saving significant money.Reasons for struggles: not knowing where to start, being overwhelmed by complexity, and spending time without professional guidance.Strategy #1: The 14-Day Home Rental Rule (Augusta Rule) Key steps: establishing a rental reason, finding a reasonable rate, and documenting proof.[05:36 - 11:14] Strategy #2: Implementing an Accountable PlanMike details how S corporations can set up accountable plans for reimbursements on business expenses like home office use, automobile, and utilities.He shares the importance of a written policy and detailed expense reporting for compliance.[11:14 - 17:42] Strategy #3: Advanced Tax Strategies for High-Income EarnersFor those earning $350,000+, Mike shares insights on leveraging charitable contributions, business investments, and more to offset income.Emphasizes correct implementation to avoid potential IRS scrutiny.[17:42 - 25:45] Short-Term Rental Loophole and Hiring Your Children for Business DeductionShort-term rentals (average stay of 7 days or less) are considered non-passive, allowing business owners to offset W-2 or business income.Mike shares the guidelines for hiring children aged 7-18 in the business for tax deductions.Compliance essentials: setting reasonable pay, tracking work hours, and direct payments.[25:45 - 29:43] Conclusion and Introduction to TaxElmMike introduces TaxElm, a software designed to help business owners implement these strategies and maximize tax savings.Direct Quotes:"These aren’t just theories; they are battle-tested methods that have saved my clients millions in taxes over the years." - Mike Jesowshek, CPA"The right tax strategies can transform a business’s financial health." - Mike Jesowshek, CPA "These strategies can take you from being an anxious and overwhelmed business owner to one who walks around with confidence and a sense of control."  - 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 

Discover how setting up an accountable plan can save business owners significant tax dollars. Learn about the key requirements that ensure compliance and avoid IRS scrutiny. Explore deductible expenses like home office usage, automobile costs, and travel reimbursements. Mike explains how separating personal and business expenses leads to smoother operations and minimizes taxable income risks. Implementing these strategies could be a game-changer for S and C corporations aiming to optimize their finances!

Send us a textHow could the upcoming election shape the future tax landscape for LLCs, and what strategies can business owners consider now to stay ahead?In this episode, Mike Jesowshek explores how the upcoming 2024 presidential election could impact LLCs, particularly small business owners. He provides a non-partisan analysis of both the Harris and Trump campaign proposals regarding corporate tax rates, capital gains, and other tax policies. Highlighting potential implications for tax planning and compliance, Mike emphasizes the importance of understanding these policies and the flexibility required to adapt to changes that may or may not pass. This episode offers LLC owners insights into proactive strategies to minimize tax liabilities in light of potential policy shifts.[00:00 - 01:18] Corporate Tax Rate ProposalsMike Introduces the episode focus: exploring potential election impacts on LLCs.He clarifies a non-partisan approach, stating the episode’s objective is to inform business owners, not take sides.Mike discusses Harris’s proposal to increase the corporate tax rate to 28% versus Trump’s proposal to lower it to 20% or 15% for U.S.-based production companies.[03:23 - 05:22] Harris Campaign on Real Estate and Trump’s Tariff ProposalHarris proposes limiting depreciation and interest for large real estate investors and increasing startup cost deductions to $50,000.Evaluating these deductions’ impact on real estate and startup expenses.Trump’s campaign discusses imposing tariffs on imports, particularly 60% for imports from China.[05:22 - 08:48] Capital Gains and Investment TaxesHarris aims to raise the capital gains tax for incomes over $1 million and increase the net investment income tax.Planning for potential tax adjustments in high-income brackets.Harris proposes exempting tips from taxes; Trump proposes exempting overtime pay from taxation.[07:00 - 11:42] Personal Tax AdjustmentsHarris’s campaign suggests expanding the child tax credit and health insurance credits; Trump aims to make prior tax cuts permanent.There are opportunities for individual tax savings depending on outcomes.Mike discusses expiring TCJA provisions, like the reduced highest tax rate, doubled standard deduction, and QBI deduction, set to end by 2025.[11:42 - 16:36] Planning Opportunities Regardless of OutcomeMike stresses tax planning adaptability regardless of the election outcome.Direct Quotes:"Policy changes can catch many businesses off guard, often leading to missed opportunities or unexpected challenges." - Mike Jesowshek, CPA"No matter what happens in this election, there’s always room for tax planning." - Mike Jesowshek, CPA"While a candidate might say one thing, it doesn’t necessarily mean it will actually come true." - 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 

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