Teaching Tax Flow: The Podcast Chris Picciurro and John Tripolsky

In this episode of the "Teaching Tax Flow" podcast, we jump into the critical subject of long-term care (LTC) planning. Bringing on board expertise and personal insights, guest Brooke Crane Acre explores what individuals need to consider while preparing for potential LTC needs. Brooke shares stories and advice to help listeners understand the significance and nuances of LTC.
Two contrasting examples from Brooke's personal life paint a picture of what long-term care can look like and underline the individual nature of care needs. The discussion covers the evolution of LTC insurance, highlighting modern policies that provide more control and assurance to policyholders. Brooke discusses using qualified assets for LTC coverage, the importance of having a documented plan, and the emotional and financial benefits of in-home care.
Key Takeaways:
Long-term care planning is essential as we age, and it's optimal to start considering it around the age of 55.Modern LTC policies have evolved, allowing for more flexibility and assurance, ensuring it's not a "use it or lose it" scenario.Family involvement is crucial; individuals should communicate and document their care preferences and appoint responsible parties for decision-making.LTC insurance can be tailored to include inflation protection, ensuring the policy's value grows with time and cost of living increases.Planning ahead with LTC insurance means peace of mind for the future, potentially mitigating the burden on both the individual and their family.
Notable Quotes:
"What long-term care is, is support and services to help you meet your personal and medical needs as we all age." - Brooke Crane Acre"If you don't use it, you don't lose it. And that is what to me is very important when we're planning for long-term care, is that that money is always yours." - Brooke Crane Acre"It's a lot easier now to document that and to have someone say, okay, this is what mom wants, or this is what grandma wanted, or this is what my sister wanted, as opposed to not asking that person." - Brooke Crane AcreEpisode Sponsor:Legacy Lock (www.teachingtaxflow.com/legacy)DISCOUNT CODE: Magic1495

This episode sheds light on the intricacies of tax rules that rental property investors face. From the various deductions and tax benefits real estate investors can enjoy to the different forms of property ownership and their implications on tax filings, the episode is brimming with valuable guidance.
Listeners get a rundown of how rental properties are taxed, the differences between gross and net income taxation, and the perks of owning rental properties. The conversation moves through the importance of reporting each property's details accurately and touches upon lesser-known tax-related aspects like qualified joint ventures and passive activity losses. 
Key Takeaways:
Rental property owners pay tax on net income, not gross income, allowing deductions like mortgage interest, property taxes, repairs, and depreciation.Each rental property must be individually reported with the correct property type, rental days, personal use days, and physical address on tax forms such as Schedule E or Form 8825.Single-member LLCs and qualified joint ventures report on Schedule E of personal tax returns, while multi-member LLCs, partnerships, and S corporations must file Form 8825.The importance of the proper classification of each property during tax filings cannot be overstated, especially as it impacts lending decisions and IRS reporting.Depreciation is a significant deduction for rental property owners, offering a tax shield even as property values appreciate.Notable Quotes:
"You want to properly report the fair market rental days, the personal use days, and the property type." - Chris Picciurro"Make sure you're getting the depreciation deduction and make sure that each property is not only identified as the correct type but the correct rental days." - Chris Picciurro"Remember, if you have a rental property, it's going to fall into three buckets." - Chris Picciurro"There are a couple of checkboxes that you have to be keenly aware of." - Chris Picciurro"Listen to the podcast on step up and basis. So if you are listening to this and you're a taxpayer and you're working in rental properties and you realize the property was inherited by someone, definitely think about the step up in basis." - Chris Picciurro
Episode Sponsor:REPStracker
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In this episode, hosts John and Chris dive into the often overlooked, yet insightful, Internal Revenue Service (IRS) Databook. The conversation opens with a spotlight on the importance of understanding IRS operations and statistics that can empower taxpayers to minimize their lifetime taxes legally and ethically. Discover key trends in electronic return filings and insights into IRS auditing practices that every taxpayer should be aware of.
The episode unpacks the IRS's processing of 271 million tax returns and the significant shift towards electronic filing, with over three-quarters filed electronically. Chris and John highlight the three states with the highest federal tax payments, namely California, New York, and Texas, offering a glimpse into the geographical dispersion of tax contributions. They also dissect the IRS customer service complexities, emphasizing the challenges faced and the agency's efforts to improve response times.
Key Takeaways:
The IRS Databook provides a transparent look into IRS operations, shedding light on filing trends and enforcement actions.Over three-quarters of tax returns are now filed electronically, marking a significant shift in taxpayer behavior.California, New York, and Texas are the top contributors to federal tax revenue, indicating regional economic influences.The audit risk for individual taxpayers remains relatively low but increases significantly with higher income levels, especially for incomes over $1 million.Taxpayer Advocate Service is a resourceful component of the IRS aimed at helping taxpayers resolve issues efficiently.Notable Quotes:
"We're gonna look at something, as I mentioned here in the intro, you probably didn't even know exists on this planet we call Earth." - John Tripolsky"Tax agencies are your involuntary business partner." - Chris Picciurro"If you owe a refund or have any type of correspondence or case going with IRS and you are found to be correct, they will pay you interest on that balance due." - Chris Picciurro"The audit risk for individual taxpayers is technically 0.44%, or one in 200." - Chris Picciurro"If you're getting audited, you're probably gonna get additional tax assessed." - Chris PicciurroReferenced Resource (IRS Data Book)https://www.irs.gov/pub/irs-pdf/p55b.pdf
Episode Sponsor Sunsets & Dinkswww.teachingtaxflow.com/pickleballCODE: TTF15

In this episode of the Teaching Tax Flow podcast, we welcome Will Lopez of Gusto to unearth the critical significance of payroll beyond its traditional perception. The conversation dives deep into the transformative power of modern payroll services provided by Gusto, as well as how efficient payroll processing can be leveraged for strategic tax planning and business growth. Explore how shifting from an arduous, compliance-heavy task to a streamlined, culture-centric system can make all the difference.
This podcast episode delves into the importance of choosing a payroll solution that offers more than just transactional processing, with Will highlighting the culture and community aspects they weave into their payroll services. Will Lopez sheds light on income shifting as a tax planning technique and how proper classification of employees and contractors can save businesses from trouble. Furthermore, the discussion touches upon leveraging payroll to offer employee benefits, enhance retention, and position oneself as an appealing employer in today's competitive job market.
Key Takeaways:
Payroll is more than just a financial transaction; it's an opportunity to reflect and build company culture and employee well-being.Proper classification of workers as either employees or contractors is critical for legal compliance and tax benefits.Income shifting and tax strategies like S corporations can save businesses significant money, with payroll processing playing an integral role.A modern and comprehensive payroll system like Gusto provides additional value through benefits, HR, and effective onboarding processes.Implementing strategic payroll processing through a cloud-based system can safeguard against compliance issues and facilitate growth.Notable Quotes:
"Payroll really is a reflection of society, in my opinion." - Will Lopez"The economy flows through payroll. Communities are actually upheld through payroll." - Will Lopez"The only thing that's really happened with payroll, it's gone from like rock hammer chisel to desktop to the cloud." - Will Lopez"Running a business, you wanna save money, but if you're running a team as well, you wanna give yourself or make yourself look good as an employer, especially if you're growing a team." - Will Lopez"Compensation is only a small piece of somebody's consideration of staying at your company." - Will LopezResources:
Check it out for yourself >> www.teachingtaxflow.com/payroll
Episode Sponsor:The Mortgage Shop

Episode Summary:
In this episode of the Teaching Tax Flow podcast, Chris Picciurro steps into the spotlight as he sheds light on his day-to-day life as a tax professional. The conversation takes an intimate turn as Chris shares his journey from an entrepreneurial paperboy to becoming a knowledge powerhouse in the realm of taxes. This episode delves into the intricacies of a tax professional's world, juxtaposed with the fun banter between the hosts, making the subject accessible to listeners from all walks of life.
Chris breaks down his professional activities into three core areas: tax compliance work, advisory services, and practice management. 
He emphasizes the importance of not just looking backward, akin to a review mirror but also planning forward akin to looking through a windshield, a practice modern tax professionals are increasingly embracing. From sharing how he gravitated toward the tax profession to discussing the future of accounting, this episode is rich with insights into the complexities and transformations within the tax industry.
Key Takeaways:
The life of a tax professional extends beyond the tax season and involves a mix of compliance, advisory, and practice management.Chris, having over 20 years of experience, has seen a major shift in his practice from compliance-heavy work to advisory services.Modern tax practices are increasingly becoming virtual, emphasizing the importance of adapting to new technologies.Chris discusses the industry's talent gap, advocating for the profession to attract new generations into the field.The conversation also touches on the personal elements of Chris's life, such as his enthusiasm for pickleball.
Notable Quotes:
"I'm more of an entrepreneur that got into running an accounting or CPA practice than a traditional.""It's only a problem until there's a process.""It's a great profession if you know someone that's interested in learning about it.""We're virtual on the private side. We're a virtual practice.""We have to make this profession more attractive."Episode Sponsor:Strategic Associates, LLCRoger Roundywww.linkedin.com/in/roger-roundy-86887b23

Let's embark on a journey through the world of retirement accounts tailored for the modern entrepreneur in this episode of the Teaching Tax Flow podcast. We jump right into how to best create a robust financial future, while cleverly navigating through various retirement plans.
In the multi-faceted discussion, Chris tactfully breaks down retirement account options, from the basic traditional IRA to the ultra-advanced defined benefit plan. Emphasizing the necessity of planning and foresight, the podcast provides a rare glimpse into the intricacies of tax-advantaged savings for self-driven business minds. With each retirement solution dissected, the episode carves out a clear understanding, empowering entrepreneurs to make informed decisions for their long-term prosperity.
Key Takeaways:
Traditional and Roth IRAs serve as basic retirement account options, allowing individual contributions up to certain limits based on age and income.SEP IRAs offer an advanced option for self-employed individuals or entrepreneurs without employees, enabling higher contribution limits and tax deductions.SIMPLE and Solo 401(k) plans serve as viable options for small business owners and sole proprietors, providing opportunities for substantial retirement savings.Safe Harbor 401(k) plans cater to businesses with employees and ensure fair treatment across compensation levels with mandatory employer contributions.Defined Benefit Plans stand at the apex of complexity, suitable for those able to contribute a significant amount annually and seeking maximal tax deductions.Notable Quotes:
"For entrepreneurs, we don't have a set it and forget it option." - Chris Picciurro"A traditional IRA is a great starter account. It's not designed specifically for entrepreneurs, yet it's utilized by many entrepreneurs when they get started." - Chris Picciurro"SEP IRA is a great weapon, especially for people that don't have employees that are just getting the ball rolling." - Chris Picciurro"The Solo K or solo Roth 401(k) could be a great weapon for them [entrepreneurs]. It allows you to take a loan against your solo 401(k) for up to $50,000 tax-free." - Chris Picciurro"If you're in the situation where you have at least $100,000 or more to contribute to retirement, then the defined benefit plan might be a good option for you." - Chris PicciurroEpisode Sponsor (Chris is very excited about this!)www.teachingtaxflow.com/pickleballCODE: TTF15