Small Business Tax Savings Podcast

Send us a textHave you ever wondered if your business can deduct the cost of an on-site gym? In this episode, Mike focuses on the tax deductibility of gym memberships and on-premises athletic facilities for small businesses. He clarifies that personal gym memberships are not deductible, with rare exceptions for fitness instructors. However, gyms or athletic facilities located on business premises can be deductible if they primarily serve rank-and-file employees, not owners or highly compensated employees. He also provides detailed guidelines and examples to help business owners understand and comply with IRS rules for these deductions.Discover the rules and exceptions by tuning in![00:00 - 05:10] Gym Membership Deductions and On-Premises Athletic FacilitiesMike discusses the non-deductibility of personal gym memberships.It is a rare exception for fitness instructors using gyms as their business location.To qualify to be deductible, facilities must primarily serve rank-and-file employees.Highly compensated employees are employees who earn $155,000 or more in 2024.[05:10 - 11:30] Examples and Case StudiesExample 1: Gym usage by owners and highly compensated employees vs. rank-and-file employees.Example 2: Single owner and one rank-and-file employee using the gym.Example 3: Owner and family members using the gym exclusively.Mike shares the importance of using a sign-in sheet or key card system for tracking gym usage.[11:30 - 15:45] Conclusion and Additional ResourcesDirect Quote:"No business allowable business deduction for personal expense, which would be a gym membership, but there are some rare circumstances on where a gym membership might be acceptable." - 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 

Discover how to transform after-tax meal expenses into pre-tax savings. Learn about the IRS rules for deductibility, including what qualifies as business-related meals. Dining with clients or staff? That’s 50% deductible! Even solo meals while traveling can save you money. Company events might offer 100% deduction potential. However, tread carefully with entertainment expenses, as they're generally not deductible. Tune in for practical tips to maximize your deductions while maintaining compliant records!

Send us a textHave you ever wondered how to turn your everyday expenses into legitimate business deductions?Mike Jesowshek discusses strategies for maximizing small business tax deductions, emphasizing the importance of both obvious and non-obvious deductions. He explains that any expense, whether ordinary or necessary for the business, qualifies as a deductible. Mike emphasizes proper documentation and legal compliance to ensure these deductions are valid. He also contrasts pre-tax and after-tax spending, showing how business owners can leverage pre-tax expenses to reduce taxable income. The episode includes practical tips on turning personal expenses into business deductions and stresses the importance of keeping separate business and personal financial accounts to avoid commingling.Tune into this episode to uncover the strategies that can save your business thousands in taxes each year![00:00 - 04:54] Introduction and Basic Deduction ConceptsMike Jesowshek introduces the topic of maximizing tax deductions for small businesses.He explains basic deductible expenses like advertising and software purchases.He emphasizes the correct implementation and documentation to keep deductions legal.[04:55 - 09:33] Maximizing Deductions and Real-World Applications Mike talks about converting personal expenses to business deductions.Pre-tax versus after-tax spending and its impact on taxes.Mike shares real-life scenarios of converting personal expenses during COVID-19.It is important to keep receipts and detailed documentation for all business expenses.[09:34 - 16:45] Effective Documentation and Banking PracticesAvoid commingling of funds and separate business accounts.Mike outlines strategies for documenting meals and travels as business expenses.Mike discusses the use of accountable plans to handle business expenses paid personally.He emphasizes the importance of reimbursements to ensure proper tax records and compliance.[16:46 - 24:19] Exploring Common Deductions and Episode Wrap-UpMike encourages listeners to review the IRS guidelines to understand what qualifies as a deductible expense.He shares strategies for integrating personal activities with business purposes to optimize tax deductions.Direct Quotes:"As a business owner, pre-tax spending allows you to reduce taxable income before it even reaches your pocket." - Mike Jesowshek"Maximizing deductions isn't just about spending more; it's about spending smarter." - Mike JesowshekResources Mentioned:Free guide on maximizing deductions available at: www.TaxSavingsPodcast.com/deductions ______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/@TaxSavin

In this conversation, retirement planning expert Matt Ruttenberg shares his insights on selecting the best retirement plans for small businesses. He breaks down various options like SEP IRAs, SIMPLE IRAs, and Safe Harbor 401(k)s, emphasizing their unique benefits and alignment with business goals. Matt also addresses common misconceptions about retirement plans, particularly for hands-on trades, and highlights the recent tax credits that make these plans more accessible. Tune in to discover how strategic retirement planning can lead to significant tax savings.

Financial expert Matt Ruttenberg joins the podcast to discuss retirement plan options for solo entrepreneurs. They explore IRAs, SEP IRAs, and solo 401(k)s, emphasizing the importance of starting with desired savings amounts. The discussion covers contribution limits, plan benefits, tax deductions, and maximizing retirement savings.

Send us a textAre you a small business owner curious about the financial benefits of establishing a retirement plan for your company?In this episode, Mike Jeshowshek and guest Matt Ruttenberg discuss the substantial tax credits and key due dates associated with setting up retirement plans for small businesses, introduced by Secure 2.0. They delve into specific credits available, such as the startup credit and the auto-enrollment credit, and outline who qualifies for these benefits. Matt provides a detailed explanation of how businesses can maximize these credits, the importance of not missing due dates, and the strategic advantage of starting retirement plans early. They also emphasize the significant tax savings and benefits for small business owners and their employees.[00:00 - 05:51] Introduction and Overview of the Series[05:52 - 12:04] Discussing Tax Credits for Retirement PlansMatt explains the startup and auto-enrollment credits under Secure 2.0.He gives examples of how businesses can utilize these credits.[12:05 - 18:44] Qualification Criteria and Case StudiesMatt provided a detailed discussion on who qualifies for the tax credits and a case study illustrating potential savings.[18:45 - 22:24] Important Due Dates for Implementing PlansMatt outlines critical due dates for various retirement plans.What is the importance of early planning and meeting deadlines to maximize benefits?Direct Quote:"Don't wait until September 15th... It takes roughly 45 to 60 days to implement these plans... So let's start having these conversations and just start looking into it." - Matt RuttenbergConnect with Matt Ruttenberg!LinkedIn: https://www.linkedin.com/in/mattruttenberg/ ______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 

Send us a textHave you ever wondered if you could hire your older child to watch your younger one and claim it as a business expense? Or are you maximizing the benefits of a Health Savings Account to its fullest potential?In this Q&A episode of the podcast, host Mike Jesowshek answers a series of listener-submitted questions covering a wide range of topics pertinent to small business owners, such as tax deductions, business expenses, payroll management, and tax strategies. Mike provides detailed insights on various scenarios, such as employing children, maximizing HSA contributions, and the proper way to handle business travel deductions. He also discusses the benefits of using payroll software for S Corporations and outlines strategies for setting reasonable salaries within an S Corporation framework. Additionally, the episode includes practical advice on managing business deductions for vehicle expenses and hiring offshore freelancers.[00:00 - 00:59] Introduction and Webinar Announcement[00:53 - 04:11] Hiring Family Members and Maximizing HSA ContributionsMike discusses the non-deductibility of hiring children for childcare within most small business contexts.Health Savings Accounts (HSAs) are tax-advantaged tools, like "retirement plans on steroids."[04:11 - 09:42] Business Purchases, Tax Implications, and Renting Personal Equipment to Your BusinessMike breaks down the financial aspects of purchasing a business, focusing on asset depreciation and the treatment of seller financing.Correctly account for personal equipment used for business to ensure tax efficiency.[09:42 - 15:31] Using Payroll Software for S Corporations and other Tax TopicsUsing payroll software to streamline payroll processes can avoid common mistakes.Providing comprehensive answers to specific questions helps clarify complex tax situations.[15:31 - 23:09] Benefits of Payroll Software for S Corps and Correct Payroll HandlingWhat are the repercussions of not managing payroll properly in a small business setting?Effective payroll management prevents penalties and ensures financial stability.[23:09 - 25:44] Travel Deductions for Business TripsMike provides guidance on how to document and justify travel expenses as ordinary and necessary for business purposes.Detailed documentation and understanding of IRS guidelines can make travel expenses deductible.[25:44 - 26:49] Closing Remarks and Additional ResourcesMike concludes with additional resources, a call for questions for future episodes, and a reminder of the upcoming webinar.Direct Quote:"Think of an HSA almost as 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 

Send us a textHave 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 

Send us a textAre 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 

Send us a textWe’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