Small Business Tax Savings Podcast – Details, episodes & analysis

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Have you ever wondered how to maximize your tax deductions while staying on the right side of the IRS?

In this episode, Mike Jesowshek provides an in-depth guide on over 30 tax write-offs and strategies that can save businesses thousands of dollars. He emphasizes the importance of understanding pre-tax versus after-tax spending, the significance of selecting the right business entity structure, and how to effectively maximize deductions. Mike also covers strategies such as using an S corporation to reduce self-employment taxes, hiring children within a business, and setting up a board for additional tax benefits. He stresses the need to correctly implement tax strategies to ensure they remain legal and beneficial.

[00:00 - 12:24] Pre-Tax vs. After-Tax Spending, Entity Structure, and S Corporations

• Mike introduces the importance of understanding tax strategies.
• Optimize spending to shift after-tax expenses into pre-tax deductions.
• He discusses how the business entity structure forms the foundation of your business.
• Different types of entity structures: sole proprietorship, LLC, C corporation.
• Choose the right entity structure to ensure proper tax benefits and legal protection.
• Consider S corporation status once your business reaches a certain profit level.

[12:24 - 26:03] Maximizing Deductions

• Mike breaks down the various business expenses that qualify as deductions, including advertising, contract labor, equipment, and gifts.
• Regularly review personal expenses to identify potential business deductions.

[26:03 - 35:18] Accountable Plan and Setting Up a Board for Tax

• Ensure proper documentation and exclusivity in home office use.
• Use a board for accountability, perspective, and additional tax deductions.

[35:18 - 44:47] Additional Tax Strategies: Meals, Travel, Automobile, and Retirement Planning

• Proper documentation and fair market value rental rates are crucial.
• Be strategic in everyday business activities to maximize deductions.

[44:47 - 57:30] Implementation of Tax Strategies

• Mike emphasizes the importance of not only learning tax strategies but also correctly implementing them.
• Correct documentation and cautious implementation are key to successful tax strategies.

Direct Quotes:

"The government doesn't come knocking and let you know when you missed out on an incentive that they gave you." - Mike Jesowshek, CPA

"Every business owner should have a home office of some sort." - Mike Jesowshek, CPA

"The implementation piece is where you start to see those tax savings." - 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

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Mike Jesowshek shares how he saved a small business owner over $15,000 in taxes in just 12 months. Mike breaks down the practical strategies implemented, including changing the business entity structure, maximizing home office and vehicle deductions, strategically categorizing business expenses, and more! 

Learn how these strategies led to over $132,000 in tax savings for Alex's business over five years. 

[00:00 - 03:28] Case Study 

• Alex is a former corporate digital marketer who transitioned from a W2 employee to an entrepreneur in the healthy eating influencer space
• Alex's quick growth, generating about $100,000 profit in the first year as a sole proprietorship
• During tax season Alex got hit with an unexpectedly large tax bill in the first year
• He realized he lacked knowledge of tax-saving strategies 

[03:29 - 06:18] Tax Saving Solutions Implemented

• We changed Alex’s entity type from sole proprietorship to S Corporation
• We implemented home office deduction through an accountable plan
• We utilized a personal vehicle for business and claimed deductions
• We maximized deductions by finding business purposes for existing spending
  • Meals with clients or business discussions
  • Travel combined with business purposes
  • Office equipment and supplies

[06:19 - 12:01] Advanced Tax Saving Strategies

• Set up a board for the business
  • Created opportunities for travel and meal expense deductions
  • Implemented the 14-day home rental rule for board meetings
• Established retirement savings with a solo 401(k)
• Set up a Health Savings Account (HSA)
• Properly deducted self-employed health insurance
• Implemented estimated tax payments to avoid penalties

[12:02 - 19:47] Results and  Key Takeaways

• These strategies saved Alex over $15,000 in taxes in the first year
• Over five years, Alex saved more than $132,000 in taxes
• These strategies are available to most small business owners
• Proper implementation is crucial for realizing tax savings

Direct Quotes 

"Implementation, understanding strategy is one thing you do not see any tax savings until you implement that strategy. And I also want to put in the effort that says implementation is one thing. The correct implementation is the key." – 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

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Are you making the most of your tax strategies and deductions this year?

In this episode, Mike Jesowshek provides a mid-year tax savings check-in for small business owners. He emphasizes the importance of reviewing tax strategies, implementing them correctly, and maximizing deductions. Key topics include entity structure review, retirement planning, incorporating children into the business, utilizing the Augusta rule, tracking automobile expenses, and keeping bookkeeping up to date. Mike highlights the need for proactive planning 

and correct implementation to achieve significant tax savings.

[00:00 - 06:37] Maximizing Deductions and Accountable Plans for S Corporations

• Mike Jesowshek emphasizes the importance of assessing and implementing tax strategies.
• He shares the importance of setting up an accountable plan for S Corporations.
• How do you evaluate the appropriateness of the current structure based on profit levels?

[06:37 - 12:10] Other Tax Strategies and Correct Implementation

• Mike discusses the importance of setting up and funding retirement accounts.
• He highlights the importance of associating business purposes with travel to gain deductions.
• He also emphasizes the need for correct implementation of tax strategies.
• Year-end rush and errors can be avoided through regular bookkeeping.

[12:10 - 20:51] Tax Payments and the Importance of Bookkeeping

• Mike reminds the listeners to keep up with estimated tax payments and proper documentation.
• Benefits of regular bookkeeping: better tax planning, accurate estimated tax payments, and reduced errors.

Direct Quotes:

"If you're swiping a card, let's see if we can find a business purpose for this." - Mike Jesowshek, CPA

"Correct implementation is key. You can take a completely legal strategy and make it illegal by incorrect implementation." - Mike Jesowshek, CPA

"Bookkeeping is the backbone of your business. It's not just for tax purposes."

"Learning's great, but Implementation saves taxes." - 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

Send us a text

On this episode Mike Jesowshek, CPA talks with Attorney Andrew M Ayers about things you need to have in place to maintain your corporate entity.

1) Your Corporate Binder
2) Why Do I Need to Keep Corporate Records?
3) Do I Need to File My Corporate Records with the State?

LINKS FROM THE SHOW

Show Blog: https://www.taxsavingspodcast.com/blog/what-do-i-need-to-maintain-my-corporate-entity

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax  
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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

Article: https://www.taxsavingspodcast.com/blog/what-do-i-need-to-maintain-my-corporate-entity

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax

IncSight Packages: https://incsight.net/pricing/

Book an Initial Consultation: 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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To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Send us a text

With January fast approaching, it’s important for business owners to start preparing their 1099-NECs. If you want to stay ahead and get everything in order before the deadline, this episode is for you! We discuss whether or not a transaction needs a 1099, what the process for filing is, and what will happen if you missed filing a 1099. 

[01:07] Fast Facts About 1099-NECs

• If your business pays a subcontractor or vendor, whether it’s an individual or a company, a total of $600+, you need to request a W9 so you can send them a 1099-NEC
• If you received a 1099-NEC as a contractor, you must report this income to the IRS
• Be it one-time or accumulative, as long as the total payment is over $600, you need to file a 1099-NEC

[04:05] When It Is NOT Required to File 1099-NECs

• Payments to C or S Corporations
• Employees 
• Payments for merchandise, telephone, freight, or storage 
• Payments to non-U.S. citizens performing work outside of the U.S
• Payments made via Credit Card or PayPal

[06:25] 1099-NEC Preparation Made Easy

• Step 1 – Collect a W9 from all contractors before you pay
• Step 2 – Fill out the 1099-NEC
• Step 3 – Send a copy of the 1099-NEC form to the contractor
• Step 4 – File a copy of the 1099-NEC with the IRS and State (if required)
• For contractors who are  non-U.S. citizens - get an accomplished W8-BEN or W8-BEN-E instead

[08:54] Penalties for Failing to File a 1099-NEC

• 1099-NECs must be filed at the IRS and sent to the recipient by January 31st of the following year
• The fine will depend on how late you are

[10:16] Different Types of 1099s

• There are over 15 types of 1099 forms that are used for various purposes

[12:30] Final Thoughts

• Do that legwork now so you can get on top of the forms needed
• Utilize software to make processing and filing easier

Key Quotes

“If you are the one paying the contractor, you are the one that files the 1099-NEC.” - Mike Jesowshek

“Sometimes it's hard to get a W9 from someone after the fact so just ask for it upfront. Again, one rule of thumb before you pay anyone, collect a W9 from them.” - Mike Jesowshek

Resources Mentioned

• Blog Post: https://www.taxsavingspodcast.com/blog/what-do-i-need-to-know-about-1099s-for-business-owners
• Software: https://www.track1099.com/ 
• Downloads: 
  • IRS: Instructions for Forms 1099-MISC and 1099-NEC
  • IRS: Form 1099-NEC
  • IRS: Form 1099-MISC

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

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax

IncSight Packages: https://incsight.net/pricing/

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

-------

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

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

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To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a

Send us a text

The home office deduction is a tax deduction almost anyone can take advantage of, especially post-COVID’s work-from-home movement. There's a lot of confusion among business owners thinking that the home office deduction is an IRS red flag, but in this episode, we set the record straight. We talk about this deduction, who can qualify for it, and everything you need to know.  

[01:02] What Qualifies As A Home Office?

• The home office deduction is not a red flag, as long as you're doing it properly
• A home office is used exclusively for business and on a regular basis
• It is a principal place of business that is used to meet clients or is used to do administrative or management work

[04:34] How To Calculate the Home Office Deduction

• The simplified option: Standard deduction of $5 per square foot of home used for business (maximum 300 square feet)
• The actual method: Your BUP multiplied by all the expenses associated with that home

[09:17] Where Do You Claim The Home Office Deduction?

• Claiming the deduction will depend on how your business is set up
• Check out our blog on the Accountable Plan and why it’s important

[10:40] Final Thoughts on How the Home Office Deduction Works

• It’s not an audit risk if you do it properly 
• To help prove your deduction, keep a log and take photos to record the business use of that home office
• Bonus tip: A home office increases the amount of business mileage you can take

Key Quotes

“The home office deduction is not a red flag as long as you're doing it properly. Actually, the home office deduction is something that the majority of business owners should take advantage of.” – Mike Jesowshek

“A home office deduction is not an audit risk as long as you're doing it right. Just don't get greedy. Make sure you document the necessary items to support your deduction.” – Mike Jesowshek

Resources Mentioned

• Blog Mentioned - Accountable Plan Importance (Expense Reimbursement): https://www.taxsavingspodcast.com/blog/what-is-an-accountable-plan-and-why-is-it-important-to-my-business
• Article: https://www.taxsavingspodcast.com/blog/how-does-the-home-office-deduction-work
• Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax  

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

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax

IncSight Packages: https://incsight.net/pricing/

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

-------

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

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

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To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Send us a text

On this episode Mike Jesowshek, CPA brings on guest, Jack Wang, to discuss the strategies available to increase college financial aid as part 3 of our mini series around college savings and financial aid.

1) Which of these schools give - and which students get money?
2) What does this all mean?

LINKS FROM THE SHOW

Show Blog: https://www.taxsavingspodcast.com/blog/what-strategies-are-available-to-increase-college-financial-aid

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax  
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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

Article: https://www.taxsavingspodcast.com/blog/what-strategies-are-available-to-increase-college-financial-aid

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax

IncSight Packages: https://incsight.net/pricing/

Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
--------
To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Send us a text

On this episode Mike Jesowshek, CPA brings on guest, Jack Wang, to discuss the basics around financial aid for college as part 2 of our mini series around college savings and financial aid.

1) What are the types of aid?
2) What are the sources of aid?
3) What year counts for financial aid?
4) What does this all mean?

LINKS FROM THE SHOW

Show Blog: https://www.taxsavingspodcast.com/blog/what-are-the-basics-around-financial-aid-for-college-what-options-are-available

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax  
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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

Article: https://www.taxsavingspodcast.com/blog/what-are-the-basics-around-financial-aid-for-college-what-options-are-available

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax

IncSight Packages: https://incsight.net/pricing/

Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
--------
To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Send us a text

On this episode Mike Jesowshek, CPA brings on guest, Jack Wang, to discuss the options available for college saving as part 1 of our mini series around college savings and financial aid.

LINKS FROM THE SHOW

Show Blog: https://www.taxsavingspodcast.com/blog/what-options-are-available-for-college-saving

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax  
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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

Article: https://www.taxsavingspodcast.com/blog/what-options-are-available-for-college-saving

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax

IncSight Packages: https://incsight.net/pricing/

Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
--------
To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Send us a text

On this episode Mike Jesowshek, CPA talks about taxes around the sale of your home.

1) What Is The Home Sale Gain Exclusion?
2) How Does The Home Sale Gain Exclusion Work If It Had Business Use?
3) Sale of Home Examples

LINKS FROM THE SHOW

Show Blog: https://www.taxsavingspodcast.com/blog/do-i-have-to-pay-taxes-if-i-sell-my-home

The Ultimate Guide to Real Estate Taxes: https://www.taxsavingspodcast.com/realestate

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax  
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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

Article: https://www.taxsavingspodcast.com/blog/do-i-have-to-pay-taxes-if-i-sell-my-home

Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax

IncSight Packages: https://incsight.net/pricing/

Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
--------
To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com