Small Business Tax Savings Podcast

How to Hire Your Kids and Save $12,000 in Taxes (Legally)

Send us a text [https://www.buzzsprout.com/twilio/text_messages/1837660/open_sms] What if you could pay your kids a salary, take a business deduction, and teach them real financial skills at the same time? In this episode, Mike Jesowshek, CPA, explains how to legally hire your children in your business, what the IRS actually allows, and how to do it correctly so you avoid audits and penalties. You’ll learn the rules for paying your kids under age 18, how to document their work, how much you can pay them tax-free, and how this strategy can double as a wealth-building tool through Roth IRAs. 👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit 🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/ [https://taxelm.com/demo/] Chapters (01:16) Why Hire Your Kids? There are two big reasons: tax savings and teaching opportunities. You get a business deduction, and your kids earn tax-free income while learning real work and money skills. (02:11) Turning After-Tax Spending Into Pre-Tax Spending Instead of paying for sports, camps, or activities with after-tax dollars, you can pay your kids from your business and let them cover those costs using pre-tax income. (03:30) What the IRS Actually Says Payments to children under 18 working for a parent’s sole proprietorship are exempt from Social Security and Medicare taxes. Mike reads the exact IRS language to prove it’s black and white in the tax code. (04:11) How It Works in Practice If your child earns under the standard deduction (about $15,000), they pay no income tax. You deduct their wages as a business expense, and you avoid FICA taxes if paying from a Schedule C or single-member LLC. (06:21) Setting It Up Correctly You need proof. Mike explains that kids must be at least 7, paid a reasonable wage, tracked for hours and tasks, paid into their own account, and issued a W2 at year-end. (11:04) Bonus Benefit: Roth IRA Kids can use earned income from the business to fund a Roth IRA. Mike shows how $25,000 invested by age 13 could grow to over $1 million by retirement. (12:55) What About S Corps? S corporations must withhold FICA taxes, but Mike explains a workaround: Splitting part of the business into a Schedule C entity to pay your kids through that side. Podcast Host: Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast Join TaxElm: https://taxelm.com [https://taxelm.com] 🚀 Visit:  https://www.TaxSavingsPodcast.com [https://www.taxsavingspodcast.com]  🚀 Check Out TaxElm: https://taxelm.com/ [https://taxelm.com/] 🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/ [https://www.facebook.com/groups/taxsavings/] 🚀 YouTube: www.TaxSavingsTV.com [http://www.taxsavingstv.com] 👋🏼 GET IN TOUCH You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏 🙌LEAVE A REVIEW If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐ 🎙 ABOUT THE PODCAST The Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help entrepreneurs legally slash their tax bills. Hosted by Mike Jesowshek, CPA, this show breaks down complex tax topics into clear, no-fluff insights so you can keep more of your hard-earned money.

Rent Your Home to Your Business Tax-Free | Augusta Rule 101

Send us a text [https://www.buzzsprout.com/twilio/text_messages/1837660/open_sms] If you’ve ever wanted to move money from your business to yourself without paying extra tax, this episode is for you. In this episode, you’ll learn how the Augusta Rule, also called the 14-Day Home Rental Rule, lets business owners rent their personal homes to their own business and receive that income completely tax-free. You’ll also learn exactly how to document it, what proof the IRS expects, and the common mistakes that can get this strategy disallowed. 👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit 🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/ [https://taxelm.com/demo/] Chapters (00:44) Why the Augusta Rule Exists The history of the rule, starting with homeowners in Augusta, Georgia, who rented their houses during the Masters Tournament. (02:07) What the IRS Code Actually Says This strategy came from homeowners in Augusta, Georgia, who rented their homes during the Masters Golf Tournament. The IRS decided that short-term home rentals of 14 days or less don’t count as rental properties and therefore don’t create taxable income. (03:09) How to Use It as a Business Owner You can legally rent your personal home to your own business for legitimate events and claim a business deduction while keeping the income tax-free. (04:21) What Not to Do Why you can’t just write yourself a random check without documentation or a valid business purpose. (04:53) 4 Key Steps to Make the Augusta Rule Work There must be a clear business reason, like a meeting or retreat. Set a fair rate using local hotel or Airbnb prices and keep proof. Create a short rental agreement with the purpose, dates, and rate, then pay yourself from the business account and keep records. (07:10) When to File a 1099 to Yourself If total rental payments exceed $600, you must issue yourself a 1099 and clear it out on your return under Section 280A(g). (07:50) Example: Putting It All Together A sample year with quarterly board meetings, a team retreat, and training events shows how this can total over $7,000 in tax-free income. (10:39) Do It Right or Risk Losing the Deduction The importance of solid documentation, fair rates, and proper proof to defend the deduction in an audit. Podcast Host: Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast Join TaxElm: https://taxelm.com [https://taxelm.com] 🚀 Visit:  https://www.TaxSavingsPodcast.com [https://www.taxsavingspodcast.com]  🚀 Check Out TaxElm: https://taxelm.com/ [https://taxelm.com/] 🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/ [https://www.facebook.com/groups/taxsavings/] 🚀 YouTube: www.TaxSavingsTV.com [http://www.taxsavingstv.com] 👋🏼 GET IN TOUCH You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏 🙌LEAVE A REVIEW If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐ 🎙 ABOUT THE PODCAST The Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help entrepreneurs legally slash their tax bills. Hosted by Mike Jesowshek, CPA, this show breaks down complex tax topics into clear, no-fluff insights so you can keep more of your hard-earned money.

How to Reimburse Yourself Tax-Free (The Accountable Plan Explained)

Send us a text [https://www.buzzsprout.com/twilio/text_messages/1837660/open_sms] If you’ve ever paid for business expenses out of pocket, like your phone bill, internet, or home office, and wondered if you can get reimbursed without paying more tax, this episode is for you. In this episode, you’ll learn how an Accountable Plan lets business owners legally reimburse themselves and their employees tax-free. You’ll also discover the 4 key rules every plan must follow to stay IRS-compliant, and the most common mistakes that lead to audit trouble. 👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit 🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/ [https://taxelm.com/demo/] Chapters (00:00) The Overlooked Tax Strategy That Saves Thousands What is the Accountable Plan? This allows you to get reimbursed for business expenses you paid personally without triggering extra income tax. (01:10) What Is an Accountable Plan? A simple breakdown of how this reimbursement policy works and why it’s essential for S Corps and C Corps. (02:44) Who Needs an Accountable Plan When owners and employees qualify, and why sole proprietors handle this differently. (04:14) How to Set It Up Step-by-Step The 3 essential steps to properly implement an Accountable Plan include creating a written policy, using expense report templates, and making reimbursement payments. (08:35) Common Expenses You Can Reimburse Tax-Free Examples like home office, internet, travel, mileage, subscriptions, and meals that qualify under an Accountable Plan. (10:30) Avoid These IRS Red Flags Why documentation, receipts, and timely reimbursements matter, and how to keep your plan audit-proof. (11:45) Quick Recap & Next Steps The four key rules of Accountable Plans are that expenses must have a clear business connection, be properly documented, exclude any excess reimbursements, and be submitted on time. Podcast Host: Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast Join TaxElm: https://taxelm.com [https://taxelm.com] 🚀 Visit:  https://www.TaxSavingsPodcast.com [https://www.taxsavingspodcast.com]  🚀 Check Out TaxElm: https://taxelm.com/ [https://taxelm.com/] 🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/ [https://www.facebook.com/groups/taxsavings/] 🚀 YouTube: www.TaxSavingsTV.com [http://www.taxsavingstv.com] 👋🏼 GET IN TOUCH You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏 🙌LEAVE A REVIEW If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐ 🎙 ABOUT THE PODCAST The Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help entrepreneurs legally slash their tax bills. Hosted by Mike Jesowshek, CPA, this show breaks down complex tax topics into clear, no-fluff insights so you can keep more of your hard-earned money.

Turn Medical Bills Into Tax Deductions (4 Ways to Deduct Health Costs)

Send us a text [https://www.buzzsprout.com/twilio/text_messages/1837660/open_sms] A single medical bill can wipe out your profits. But health expenses don’t have to drain your cash flow.  In this episode, you’ll learn three powerful ways to turn your medical costs into legitimate tax deductions. From self-employed health insurance and Health Savings Accounts (HSAs) to Section 105 reimbursement plans and employee health benefits, these strategies can help business owners save thousands while staying fully IRS-compliant. 👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit 🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/ [https://taxelm.com/demo/] Chapters (00:00) Turning Health Costs Into Tax Savings Health expenses can become powerful deductions when structured properly. Learn how small business owners can legally reduce taxes through insurance, HSAs, and reimbursement plans. (00:45) Self-Employed Health Insurance Deduction How sole proprietors, LLCs, and S Corp owners can claim health insurance premiums as deductions, and the exact steps S Corp owners must follow to stay compliant. (04:03) The Triple Tax Benefit of HSAs How Health Savings Accounts offer tax-free contributions, growth, and withdrawals, and why treating your HSA like a retirement account can build long-term wealth. (08:28) Section 105 Medical Reimbursement Plans For business owners with high out-of-pocket medical costs, this plan turns personal medical expenses into deductible business costs when set up correctly. (10:11) Health Benefits for Employers Affordable options for small businesses to offer tax-free health reimbursements through QSEHRA or ICHRA plans without the complexity of traditional group insurance. (13:06) The Four Keys to Health Tax Strategy How to combine these tools: Insurance deductions, HSAs, Section 105 plans, and employee benefits, to lower taxes and protect your cash flow. Podcast Host: Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast Join TaxElm: https://taxelm.com [https://taxelm.com] 🚀 Visit:  https://www.TaxSavingsPodcast.com [https://www.taxsavingspodcast.com]  🚀 Check Out TaxElm: https://taxelm.com/ [https://taxelm.com/] 🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/ [https://www.facebook.com/groups/taxsavings/] 🚀 YouTube: www.TaxSavingsTV.com [http://www.taxsavingstv.com] 👋🏼 GET IN TOUCH You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏 🙏 LEAVE A REVIEW If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐ 🎙 ABOUT THE PODCAST The Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help entrepreneurs legally slash their tax bills. Hosted by Mike Jesowshek, CPA, this show breaks down complex tax topics into clear, no-fluff insights so you can keep more of your hard-earned money.

Why Every Family Needs a Trust & LLC (Not Just the Rich)

Send us a text [https://www.buzzsprout.com/twilio/text_messages/1837660/open_sms] Trusts aren’t just for the rich. Every family can benefit from one. A revocable living trust can simplify estate planning, avoid probate, and create a foundation for generational wealth. In this episode, Mike Jesowshek, CPA, sits down with Jack Fiveash, attorney and co-founder of The Co Letter, to talk about how families can use a simple trust and LLC structure to build long-term stability, protect assets, and involve their children in smart financial stewardship. They cover how to start a revocable trust, the ideal timing, what it costs, and how it ties into a broader family office structure that preserves both wealth and values. 👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit 🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/ [https://taxelm.com/demo/] Chapters (00:00) Intro to Family Office Structures A family office isn’t only for the ultra-wealthy. (02:41) Understanding Revocable Living Trusts What is a revocable living trust (RLT), why every family should have one, and how it simplifies estate planning. (04:43) When to Create a Trust for Your Kids Jack explains the right time to create a trust for children and how even young people with digital assets or investments can benefit from having one in place. (06:53) Cost and Process of Setting Up a Trust Jack outlines realistic pricing, what makes a trust legally sound, and the importance of completing a general assignment to fully fund the trust. (09:44) Funding the Trust and Avoiding Probate Issues Jack describes how a trust must be properly funded through title changes and assignments to avoid probate disputes later. (10:22) Involving Family Members Early Jack and Mike discuss including children in the family LLC, teaching financial stewardship, and using legitimate methods to instill responsibility and long-term wealth habits. (13:38) Family Business Meetings and Board Structure How to formalize family board meetings, even on vacations, to build both structure and tax efficiency.  (18:30) Structuring Family Business Entities When to create new entities versus using existing businesses, how to integrate wills and trusts into ownership. (20:46) Building a Foundation for Generational Wealth Jack offers guidance for those just starting to build wealth: How to use simple structures like family LLCs or educational trusts to create lasting value for children and grandchildren. Learn more about family trusts, LLCs, and governance at  https://thecoletter.beehiiv.com Podcast Host: Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast Join TaxElm: https://taxelm.com [https://taxelm.com] 🚀 Visit:  https://www.TaxSavingsPodcast.com [https://www.taxsavingspodcast.com]  🚀 Check Out TaxElm: https://taxelm.com/ [https://taxelm.com/] 🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/ [https://www.facebook.com/groups/taxsavings/] 🚀 YouTube: www.TaxSavingsTV.com [http://www.taxsavingstv.com] 👋🏼 GET IN TOUCH You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏 🙏 LEAVE A REVIEW If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐ 🎙 ABOUT THE PODCAST The Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help