Small Business Tax Savings Podcast

Send us a text [https://www.buzzsprout.com/twilio/text_messages/1837660/open_sms] How prepared are you to make 2025 your best financial year yet? In this episode, Mike Jesowshek dives into strategic financial planning for 2025, emphasizing the importance of a financial summary document, proactive tax planning, and long-term strategic business planning. He explains how to create a comprehensive financial summary, differentiate between tax preparation and tax planning, and implement actionable goals to achieve financial clarity and growth. By focusing on yearly updates, tax strategies, and structured plans, listeners are encouraged to approach the new year with clarity and purpose. Explore how a clear financial summary, tax strategies, and strategic planning can set you up for success. [00:00 - 05:12] Creating a Financial Summary Document * Mike explains the purpose and benefits of a financial summary document. * Annual updates to a financial summary provide clarity and preparedness. [05:13 - 12:39] Tax Preparation vs. Tax Planning * Mike shares the distinction between compliance-focused tax preparation and strategy-driven tax planning. * Implementing tax strategies is crucial for minimizing tax liability. [12:40 - 17:20] Strategic Business Planning * Strategic planning involves envisioning a 10-year perfect scenario and breaking it down into actionable goals. * Clear planning transforms business goals into achievable steps. [17:21 - 20:34] Key Takeaways and Resources * Mike recaps the importance of financial summaries, tax planning, and strategic business goals. * Success is intentional and requires consistent planning. Direct Quotes: "Success doesn't just happen. It's planned." - Mike Jesowshek, CPA "Learning is important, but implementation is the next step." - Mike Jesowshek, CPA "Strategic planning helps turn dreams into reality by breaking down goals into actionable steps." - Mike Jesowshek, CPA ______ Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast Join TaxElm: https://taxelm.com/ [https://taxelm.com/] ------- Podcast Website: https://www.TaxSavingsPodcast.com [https://www.taxsavingspodcast.com/] Facebook Group: https://www.facebook.com/groups/taxsavings/ [https://www.facebook.com/groups/taxsavings/] YouTube: www.TaxSavingsTV.com [http://www.taxsavingstv.com]

Send us a text [https://www.buzzsprout.com/twilio/text_messages/1837660/open_sms] Are you prepared for the IRS’s new 1099-K reporting rules and how they could impact your business's bottom line? In this episode, Mike Jesowshek discusses the significant changes to the IRS 1099-K rule and its potential impact on small businesses, freelancers, and online sellers. The rule, initially requiring payment processors to report income over $20,000, is being gradually lowered to $600 by 2026. Mike explains how this rule aims to address underreported income and outlines the implications for businesses accepting payments via platforms like PayPal, Venmo, and Stripe. He emphasizes the importance of accurate reporting to avoid IRS scrutiny and offers a free demo call to help listeners prepare their tax strategies. [00:00 - 06:42] Why the 1099-K Rule Was Introduced * Mike discusses the significance of the 1099-K for freelancers, small businesses, and gig workers. * Understanding this rule is key to avoiding surprises during tax season. * The motivation behind the rule: addressing underreported income from goods and services. * Report all income accurately, even without a 1099-K. [06:43 - 10:37] Who This Rule Impacts * Mike dives deep into who’s affected: freelancers, gig workers, and small businesses. * Proactively distinguish between personal and business transactions. [10:38 - 14:22] Timeline and Rollout of the Rule * Breakdown of the phase-in thresholds: * 2024: $5,000 * 2025: $2,500 * 2026: $600 * Mike highlights potential changes due to legislative pushback. * Stay updated on the latest developments and adapt your approach. [14:23 - 18:58] Avoiding Tax Issues and Next Steps * Mike shares tips for accurate reporting and reconciling 1099-K forms with your tax returns. * Be proactive in managing your taxes to avoid penalties and ensure compliance. Direct Quotes: “The 1099-K is a tool to let the IRS know what funds are being processed and who is receiving those funds.” - Mike Jesowshek, CPA “This rule isn’t about changing how taxes work; it’s about changing how income is reported.” - Mike Jesowshek, CPA “Don’t wait for a 1099-K to report your income. Always report all earnings to stay on the right side of the law.” - Mike Jesowshek, CPA ______ Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast Join TaxElm: https://taxelm.com/ [https://taxelm.com/] ------- Podcast Website: https://www.TaxSavingsPodcast.com [https://www.taxsavingspodcast.com/] Facebook Group: https://www.facebook.com/groups/taxsavings/ [https://www.facebook.com/groups/taxsavings/] YouTube: www.TaxSavingsTV.com [http://www.taxsavingstv.com]

Send us a text [https://www.buzzsprout.com/twilio/text_messages/1837660/open_sms] What if a few simple shifts in your business structure and financial habits could set you ahead of 99% of companies? In this episode, Mike Jesowshek, a CPA and founder of Taxelm, shares practical strategies for small businesses to gain a competitive edge without requiring massive investments or risky tactics. He emphasizes the importance of establishing a proper entity structure as the foundation for growth, maintaining an accurate and cloud-based bookkeeping system, and utilizing financial data to make informed business decisions. Mike also highlights key tax deductions and offers resources to help business owners optimize their financial strategies effectively. [00:00 - 04:50] Introduction: Setting the Stage * Mike introduces the theme of outpacing 99% of businesses with simple, effective strategies. * Success doesn’t require excessive risk or investment; it starts with foundational business practices. * Transitioning to an S Corporation can lead to significant tax savings. *  A well-structured entity is essential for tax efficiency and long-term growth. [04:51 - 10:00] Building a Solid Foundation for Growth and The Backbone of Business * Mike shares the importance of creating a management company structure for multiple business entities. * Clear and organized entity structures reduce risks and enhance scalability. * Consistent bookkeeping helps identify inefficiencies and drives better financial decisions. [10:01 - 19:26] Leveraging Financial Data and Resources * It is vital to use accurate financial statements for tax planning and business strategy. * Mike offers a free document outlining tax deductions to maximize savings. * Proactive financial management unlocks opportunities for growth and profitability. Direct Quotes: “Your entity structure is the foundation of how your business operates and grows.” - Mike Jesowshek “Bookkeeping isn’t just for taxes; it’s the backbone of understanding your business’s financial health.” - Mike Jesowshek “A cloud-based system done correctly gives you actionable insights. Done poorly, it gives you nothing.” - Mike Jesowshek “With the right foundation, you can grow into the 1% of business owners who succeed at scale.” - Mike Jesowshek Check out this episode’s blog: The Ultimate Guide to Maximizing Business Deductions and Write-Offs [https://www.taxsavingspodcast.com/deductions] ______ Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast Join TaxElm: https://taxelm.com/ [https://taxelm.com/] ------- Podcast Website: https://www.TaxSavingsPodcast.com [https://www.taxsavingspodcast.com/] Facebook Group: https://www.facebook.com/groups/taxsavings/ [https://www.facebook.com/groups/taxsavings/] YouTube: www.TaxSavingsTV.com [http://www.taxsavingstv.com]

Send us a text [https://www.buzzsprout.com/twilio/text_messages/1837660/open_sms] What 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 Growth * Mike 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-Changer * Mike 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 Faster * Mike 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 Encouragement * Mike 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 Podcast Join TaxElm: https://taxelm.com/ [https://taxelm.com/] ------- Podcast Website: https://www.TaxSavingsPodcast.com [https://www.taxsavingspodcast.com/] Facebook Group: https://www.facebook.com/groups/taxsavings/ [https://www.facebook.com/groups/taxsavings/] YouTube: www.TaxSavingsTV.com [http://www.taxsavingstv.com]

Send us a text [https://www.buzzsprout.com/twilio/text_messages/1837660/open_sms] Did you know you can maximize your HSA contributions even if you switch to a high-deductible health plan late in the year? In this episode of the Small Business Tax Savings Podcast, Mike Jesowshek answers listener-submitted tax and business-related questions, covering topics such as HSA contributions, structuring multiple businesses, employing children, vehicle deductions, the Employee Retention Tax Credit (ERC), and year-end tax planning strategies. He emphasizes the importance of implementing tax-saving strategies tailored to individual circumstances and highlights tools like Tax Savings Podcast resources and Taxelm for deeper guidance. Discover this and more tax-saving tips in today’s listener Q&A episode! [00:00 - 02:53] HSA Contributions and the Last Month Rule * Mike explains the IRS’s Last Month Rule, allowing full-year HSA contributions if enrolled by December 1st. [02:53 - 05:42] Starting a Business and Learning Tax Strategies * A Minnesota listener seeks guidance after forming a new business. * What is the importance of implementation over mere learning of tax strategies? [05:42 - 07:39] Employing Children and Managing Child Support * Mike gives advice on structuring small business ownership to avoid affecting child support obligations. [07:39 - 13:00] Structuring Multiple Businesses * Discussion on using DBAs versus separate LLCs for businesses in different verticals. * Consideration of liability and future sale opportunities. [13:00 - 19:16] Core Tax Strategies and Vehicle Deductions * Mike discusses core tax strategies such as home office, automobile, and travel deductions. * He explains vehicle deductions, depreciation methods, and financing. [19:16 - 27:30] Year-End Tax Planning Tips * Mike clarifies on how to handle ERC credits in amended taxes. * He encourages listeners to implement achievable strategies before the year ends. Direct Quotes: “The key piece is implementation. You can learn all you want all day long, but if you don't implement anything, you don't see the tax savings.” - Mike Jesowshek, CPA “As long as you have that high-deductible health plan in place by December 1st, you're eligible to contribute the full amount to an HSA for the year.” - Mike Jesowshek, CPA “Take off what you can bite off and do that. I’d much rather see you do one or two strategies than try to do ten and end up doing zero.” - Mike Jesowshek, CPA Check out this episode’s blog post: https://www.taxsavingspodcast.com/blog/tax-questions-answered-vehicle-deductions-entity-structure-wotc-compliance-and-more [https://www.taxsavingspodcast.com/blog/tax-questions-answered-vehicle-deductions-entity-structure-wotc-compliance-and-more]  ______ Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast Join TaxElm: https://taxelm.com/ [https://taxelm.com/] ------- Podcast Website: https://www.TaxSavingsPodcast.com [https://www.taxsavingspodcast.com/] Facebook Group: https://www.facebook.com/groups/taxsavings/ [https://www.facebook.com/groups/taxsavings/] YouTube: www.TaxSavingsTV.com [http://www.taxsavingstv.com/]