Are 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 Plans

• Matt 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 Studies

• Matt 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 Plans

• Matt 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 Ruttenberg

Connect with Matt Ruttenberg!

LinkedIn: https://www.linkedin.com/in/mattruttenberg/ 

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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/

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

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

YouTube: https://www.youtube.com/@TaxSavings 

Have 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 Contributions

• Mike 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 Business

• Mike 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 Topics

• Using 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 Handling

• What 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 Trips

• Mike 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 Resources

• Mike 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

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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/

YouTube: https://www.youtube.com/@TaxSavings 

Have 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 Complexities

• Mike 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 Efficiency

• The 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 Structures

• What 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 Conclusion

• Mike 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

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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

-------

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

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

YouTube: https://www.youtube.com/@TaxSavings 

Are 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 Taxes

• Mike Jesowshek introduces the topic of estimated taxes, explaining the pay-as-you-go system and upcoming deadlines.

[01:21 - 02:45] The Mechanics of Withholding

• Mike 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 Refunds

• What is year-end tax reconciliation and what are the misconceptions about tax refunds?

[04:32 - 06:28] Estimated Tax Due Dates and Payment

• Mike clarifies the quarterly tax payment due dates and the reasoning behind them.

[06:28 - 10:50] Safe Harbor Rule and Calculating Estimated Taxes

• Mike 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 Recap

• What 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

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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/

YouTube: https://www.youtube.com/@TaxSavings 

We’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 Owners
Date: Wednesday April 24, 2024
Time: 2pm EST
Sign-Up: https://www.taxsavingspodcast.com/slashtaxes

In 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

Are you maximizing the potential of your real estate investments through 1031 exchanges and Opportunity Zones?

In this podcast, Mike Jesowshek and guest Michael Scherer delve into the intricacies of 1031 exchanges, focusing on various replacement property options, including Delaware Statutory Trusts (DSTs) and Qualified Opportunity Zones. They discuss the advantages of passive investment through DSTs, the strategic importance of planning and consulting with tax advisors, and the potential tax deferral benefits of investing in Opportunity Zones. The conversation emphasizes the need for investors to align their investment choices with their financial goals and the importance of thorough planning.

[00:00 - 04:37] Replacement Property Options and Delaware Statutory Trusts (DSTs) in 1031 Exchanges

• Mike Jesowshek introduces the topic and welcomes back expert Michael Scherer to discuss 1031 exchange replacement properties and Opportunity Zones.
• Michael explains the concept of Delaware Statutory Trusts as a passive investment option for 1031 exchanges.

[04:38 - 06:17] Direct Real Estate Investment vs. Passive DST Investment

• Michael compares the differences between active real estate investments and passive DST investments.
• What are the investor involvement and management responsibilities in different types of investments?

[06:18 - 12:59] Strategies for Maximizing Tax Deferral and Qualified Opportunity Zones as an Investment Avenue

• Exploring methods for achieving full tax deferral by combining different investment strategies, like DSTs and direct property purchases.
• Michael highlights the Importance of strategic planning and advisory collaboration.

[12:59 - 19:06] Navigating the Complexity of 1031 Exchanges and Investment Options

• How to approach 1031 exchanges, including the importance of selecting the right replacement properties?
• Michael explains the concept of Qualified Opportunity Zones, their benefits, and the tax implications involved.
• Opportunity Zones can serve as a fallback for failed 1031 exchanges or as a strategic choice for deferring taxes.

[19:07 - 22:57] The Importance of Planning and Expert Advice

• Michael emphasizes the value of expert advice and the need for early planning in the investment process.

Direct Quotes:

"Understanding the investor's goals and objectives and working with their tax advisor is critical." - Michael Scherer

"It all comes down to planning and understanding what your objectives are." - Michael Scherer

Connect with Michael!

LinkedIn: https://www.linkedin.com/in/michael-scherer-caia-8147504/ 

Email: [email protected] 

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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

-------

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

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

YouTube: https://www.youtube.com/@TaxSavings 

Are you maximizing your real estate investment potential through tax-deferred strategies? 

Mike Jesowshek and Michael Scherer delve into the intricacies of 1031 exchanges. They explain its purpose, benefits, and the critical role of proper planning and advice from tax advisors. They emphasize the necessity of involving a qualified intermediary and the potential financial advantages, including tax deferral and strategic reinvestment, to maximize wealth building in real estate investment.

[00:00 - 04:52] 1031 Exchanges and its Planning and Prerequisites

• Mike Jesowshek introduces the topic and guest Michael Scherer from RCX Capital Group.
• They discuss the significance of 1031 exchanges in real estate tax strategy.
• Key aspects of initiating a 1031 exchange including the role of tax advisors and ownership structure, are discussed.

[04:53 -12:22] 1031 Exchange Process, Timelines, and Exploring Replacement Property Options

• Michael explains the strict timelines and procedural steps involved in a 1031 exchange and the importance of investing in like-kind properties for tax deferral. 
• He explores like-kind exchange requirements and potential replacement properties.

[12:22 - 16:22] Liquidity and Investment Goals in 1031 Exchanges

• How does the liquidity aspect of investments affect 1031 exchange decisions?
• Investment goals and timelines should align with 1031 exchange strategies.

[16:22 - 20:04] Final Steps and the Role of RCX Capital Group in 1031 Exchange

• Michael gives an overview of the final steps in the 1031 exchange process, focusing on replacement property identification and closing within set deadlines.
• He shares the importance of understanding and planning for the financial and legal intricacies of the exchange process.

[20:05 - 24:23] Common Mistakes and Wrap-Up

• Michael outlines common mistakes in 1031 exchanges, emphasizing the need for early planning and professional guidance.
• Final thoughts on the importance of understanding 1031 exchanges as part of a comprehensive real estate investment strategy.

Direct Quotes:

"1031 exchange is an exceptional tool for wealth building, but something that you need to plan around." - Michael Scherer

"Proper planning is essential. Talk through your options, understand your goals and objectives." - Michael Scherer

"One of the most amazing wealth-building tools is section 1031." - Michael Scherer

Connect with Michael!

LinkedIn: https://www.linkedin.com/in/michael-scherer-caia-8147504/ 

Email: [email protected] 

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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

-------

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

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

YouTube: https://www.youtube.com/@TaxSavings 

Ever wondered how you could significantly reduce your taxable income from real estate investments in just one year?

In this episode, Mike Jesowshek introduces Gabriel Florentino from Engineered Tax Services to discuss cost segregation studies, a tax strategy for real estate investors aiming to accelerate depreciation deductions. Gabriel explains the concept and benefits of cost segregation, emphasizing its significant impact on reducing taxable income by identifying and reclassifying property components to shorter depreciable lives. The discussion also covers the importance of understanding accounting terms, the difference between cost segregation and traditional depreciation methods, and the added advantage of bonus depreciation introduced in 2017, which allows for even greater tax savings in the early years of property ownership.

[00:00 - 08:37] Cost Segregation Studies

• Mike introduces Gabriel Florentino to discuss how cost segregation can be a key tax planning strategy for real estate investments.
• Cost segregation allows for accelerated depreciation, offering significant tax benefits.
• Gabriel explains cost segregation as a method to write off 25-30% of a real estate asset's purchase price in the first year.
• 
  

[08:38 - 14:36] The Impact of Bonus Depreciation

• Bonus depreciation, starting in 2017, boosts the benefits of cost segregation by allowing immediate depreciation of certain assets.
• Gabriel highlights the significant tax savings achievable, even as bonus depreciation percentages change over time.

[14:37 - 19:52] Practical Examples and Cost Study Analysis

• Gabriel provides examples demonstrating the financial benefits of cost segregation and addresses the costs associated with conducting a study.
• Insights into the factors affecting the cost of a cost segregation study, including property type and location.

[19:53 - 22:08] Conclusion and Final Thoughts

• Emphasis on the value of cost segregation for both active and passive real estate investors.
• Gabriel mentions the complimentary benefit analysis offered to evaluate the potential benefits of conducting a cost segregation study.

Direct Quotes:

"Even if it's sunsetting, there is still a huge benefit of doing a cost seg study on a property." - Gabriel Florentino

"Cost segregation study is still a strong tool because you're getting the real value of depreciation for a lot of components inside a property." - Gabriel Florentino

Connect with Gabriel!

Email: [email protected] 

Website: https://engineeredtaxservices.com 

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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

-------

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

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

YouTube: https://www.youtube.com/@TaxSavings 

Curious about how real estate can help you grow your wealth and save on taxes?

In this episode, Mike Jesowshek discusses how real estate can serve as a tool for both wealth-building and tax savings. He emphasizes the concept of depreciation, whereby the cost of a rental property can be deducted over time, and explains how this, along with other operating expenses, can offset rental income. He also delves into strategies for utilizing passive losses to offset ordinary income, such as qualifying as an active real estate investor or a real estate professional. Additionally, he touches on the "short-term rental loophole" and the importance of considering exit strategies when selling real estate investments.

[00:00 - 05:21] Introduction and Overview of Real Estate Tax Planning

• Real estate serves as a powerful tool for both wealth-building and tax savings.
• Depreciation allows the gradual deduction of the purchase price of a rental property over time.
• Operating expenses, including utilities and real estate taxes, can also offset rental income.
• An active real estate investor status allows for a maximum deduction of $25,000 to offset ordinary income.

[04:00 - 13:41] Utilizing Passive Losses and Short-Term Rental Loophole

• Passive losses from rental properties cannot directly offset ordinary income but can be carried forward.
• The short-term rental loophole allows losses from short-term rentals to offset ordinary income under certain conditions.

[13:41 - 17:09] Considerations for Business Owners in Real Estate

• Business income in real estate is considered active income and requires different tax strategies.
• An S Corporation can be beneficial for business owners earning over a certain threshold.

[17:09 - 25:51] Exit Strategies and Conclusion

• Exiting real estate investments may trigger taxes, but strategies like 1031 exchanges can defer tax liability.

Quote:

"Don't get into real estate for tax savings. Get into real estate to grow your wealth and then experience the benefit of tax savings that comes with real estate as that cherry on top." - Mike Jesowshek, CPA

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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/

YouTube: https://www.youtube.com/@TaxSavings 

Are you worried about filing your tax return on time or paying your tax bill?

In this episode, Mike Jesowshek discusses tax extensions and strategies for paying tax bills, addressing common misconceptions and providing practical advice. He clarifies that filing an extension does not increase audit risk and emphasizes the importance of timely filing and payment. Mike outlines options for those who can and cannot afford their tax bills, including installment agreements and offers in compromise. Throughout the discussion, he stresses the significance of proactive tax planning to avoid financial strain in the future.

[00:00 - 05:21] Understanding Tax Extensions and Their Importance

• Filing an extension doesn't increase audit risk, can lower chances of audit.
• The reasons for filing an extension include waiting on documents or incomplete bookkeeping.
• Extensions extend time to file, not time to pay; taxes are still due on original deadlines.
• Failure to file penalties is more severe than failure to pay penalties.
• Make estimated payments with extensions to avoid penalties and interest.

[00:05:33 - 00:18:12] Strategies for Paying Tax Bills

• For those who can afford tax bills, options include automatic withdrawal, online payments, or credit/debit card payments.
• For those who can't afford tax bills, filing returns is crucial; failure to file penalties are harsher.
• The options for payment include borrowing funds, short-term payment plans, or offers in compromise.
• Installment agreements with the IRS require timely payments to avoid complications.
• Proactive tax planning and estimated tax payments can prevent future financial strain.

Direct Quotes:

"Filing an extension is simply an extended time to file your tax return. The taxes are still due on that original due date." - Mike Jesowshek

"Extensions extend time to file, not time to pay." - Mike Jesowshek

Resources Mentioned:

• IRS Direct Pay: https://www.irs.gov/payments/direct-pay 

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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

-------

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

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

YouTube: https://www.youtube.com/@TaxSavings 

Ever wondered if your global business ventures could be affecting your U.S. taxes more than you realize? 

In the podcast episode, Mike Jesowshek delves into the intricacies of foreign income for small business owners, covering essential aspects such as reporting requirements, types of foreign income, tax treaties, exemptions, the foreign earned income exclusion, the foreign tax credit, and compliance with reporting obligations. He emphasizes the importance of U.S. citizens and residents reporting worldwide income on their U.S. tax returns, regardless of where the income is earned. Mike also discusses strategies to mitigate double taxation, such as utilizing tax treaties and claiming foreign tax credits or income exclusions, while underscoring the critical nature of maintaining accurate records and understanding compliance requirements to ensure transparency and adherence to tax laws.

[00:00 - 05:00] Introduction to Foreign Income for Entrepreneurs

• Mike Jesowshek introduces the topic of foreign income reporting for small business owners.
• Discussion on the requirement for U.S. citizens and residents to report worldwide income.

[05:00 - 10:00] Tax Treaties, Exemptions, and Foreign Earned Income Exclusion

• Explanation of tax treaties and exemptions to avoid double taxation.
• Details on the foreign earned income exclusion, including eligibility criteria.

[10:00 - 15:18] Compliance and Reporting Requirements

• Overview of the compliance and reporting requirements for U.S. taxpayers with foreign income or assets.
• Explanation of FBAR reporting requirements for individuals with foreign bank accounts or financial interests.

Quote:

"There might be a credit, there might be some exclusion of it, there might be some exemptions, but the IRS wants to know about it." - Mike Jesowshek, CPA

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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/

YouTube: https://www.youtube.com/@TaxSavings