How to Lower Your Tax Bill

Terrance Hutchins

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ENTREPRENEURSHIP
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The goal of this podcast is to help educate our listeners on tax strategies and offer concrete steps you can implement to improve your tax situation immediately. Each episode, we break down useful tax tips you can use to save money, no matter what your business or personal income situation is.

09/25/2025

How To Lower Your Tax Bill Episode 30

How Much Profit Should You Keep in Your Business? For business owners wondering how to manage profits wisely, this episode is essential listening. Host Terrance Hutchins and co-host T’mia explore the strategic decision-making process behind retaining money in your business, explaining how much to keep, why it matters, and how it all ties into taxes. Building on previous episodes about where profit goes—like taxes, debt, and reinvestment—this conversation centers on the crucial (and often overlooked) topic of retained earnings. Whether you're a seasoned entrepreneur or a new S-corp owner, you’ll walk away with a clearer understanding of financial planning inside your business. What You’ll Learn in This Episode: Why retaining profit is essential for long-term business stability and growthThe difference between C-corporations and pass-through entities when it comes to taxesHow to calculate and set up a proper rainy day fund for your businessStrategic reasons to retain money beyond emergency savings—like hiring or equipment replacementA breakdown of how to allocate business profits (taxes, reinvestment, savings, distributions)Why understanding distributions is key—and what most people get wrongFeatured Tax Tip: Retaining profit doesn’t change your tax liability in an S Corp—the IRS still taxes you on what your business earns, not what you take out. Just like your kids ordering dinner doesn’t mean they’re paying the bill, your S Corp passes the check to you. Plan accordingly. If you’re building a business, don’t just focus on making money—focus on allocating it wisely. Learn how to prepare for surprises, fund your future, and structure your finances with tax-smart strategy. Subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts. Keep More of What You Earn.

19 min
09/18/2025

How To Lower Your Tax Bill Episode 29

In this episode of How to Lower Your Tax Bill, host Terrance Hutchins and co-host T’mia continue their series on managing profits for small business owners. This time, the spotlight is on reinvesting profits back into your business—and how to do it in a way that actually builds long-term value. Whether you're new to entrepreneurship or scaling an established business, this conversation will help you rethink what profit really is, why some owners are unknowingly devaluing their businesses, and how reinvesting strategically can save you thousands in taxes while setting up future growth. Key Discussion Points: Why your business profits aren’t really profit if you’re underpaying yourselfThe four areas where reinvestment makes the biggest impact: people, systems, processes, and marketingHow to set a baseline return on investment before reinvesting a dollarWhat “return on invested capital” is—and how it tells you if your business is healthyWhy a big tax write-off now can mean lower taxes today and lower capital gains laterFeatured Tax Tip: Reinvesting in your business reduces taxable profit today—and if that increases your business’s value, you’ll pay a lower capital gains tax rate (capped at 20%) when you sell, instead of ordinary income tax rates (which can be over 30%). That's a strategic win. If you’ve ever wondered where your profit goes—or how to turn it into more revenue instead of just expenses—this episode is your roadmap. Subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts — and as always, Keep More of What You Earn.

21 min
09/12/2025

How To Lower Your Tax Bill Episode 28

Is Business Debt Worth It? Tax Truths You Need to Know In this episode of How to Lower Your Tax Bill, host Terrance Hutchins and co-host T’mia continue their series on what to do with your business profits—this time diving into the realities of using debt as a business strategy. Whether you're thinking of financing a new vehicle, bidding on a big project, or taking out a loan to expand, this episode unpacks what debt really costs you from a tax and cash flow perspective. Ideal for business owners navigating decisions about loans, reinvestment, and capital expenses, this conversation helps you think critically about whether the “tax write-off” is actually worth the debt you’re taking on. Key Discussion Points: Why debt feels like a tax win—but can drain your cash in year twoThe danger of spending $1 to save 40 cents: why tax write-offs aren't always smartHow to evaluate if a project is worth financing and what poor forecasting can cost youUnderstanding “cash trapped in the balance sheet” and how delayed payments can trigger tax troubleWhat good debt looks like: using loans to buy assets that pay for themselves—and then someFeatured Tax Tip: Buying a vehicle to reduce your tax bill can backfire—fast. Only the interest on your loan is deductible after year one, not the principal. If your new asset isn’t generating profit, your debt may cost you more than the taxes you saved. Whether you're a cautious entrepreneur or an ambitious growth-seeker, this episode gives you practical tools to forecast smartly, avoid unnecessary debt, and keep your profits working for you—not your lender. Subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts — and as always, Keep More of What You Earn.

19 min
08/05/2025

How To Lower Your Tax Bill Episode 27

One Big Beautiful Bill, Part 2: Advanced Opportunities & Loopholes for Savvy Taxpayers Host Terrence Hutchins and returning guest David Stevens shift from “what changed” to “how to exploit it.” This follow-on conversation mines the fine print of the “One Big Beautiful Bill,” surfacing planning angles that tipped employees, high-income coastal professionals, and growth-minded business owners can act on right now. Key takeaways SALT cap relief—finally a workaround Deduct up to $40 k of state & local taxes (phasing out above $500 k AGI) through 2030; pair it with strategic charitable giving to stack deductions.Tip & overtime exclusions First $25 k in combined tips/overtime ($12.5 k single) is off-limits to the IRS for earners under $300 k AGI—only 2025-2028, so document every dollar.New “personal perks” bucket Car-loan interest on U.S.-assembled vehicles (max $10 k), “Trump Accounts” for newborns, and supersized 529 uses for tutoring & therapy up to $20 k—each with sunset dates readers should diary.Charitable & family credits rebooted A resurrected $2 k above-the-line charity deduction, refundable $5 k adoption credit, plus HSA compatibility for bronze plans—great news for gig-economy families.Business-owner bonanza 100 % bonus depreciation on manufacturing/refining buildings (four-year window), immediate R&D expensing, tighter but more lucrative corporate-giving thresholds, and beefed-up Qualified Opportunity Zone and QSBS incentives.Farmer-friendly gain spreading Capital gains from farm sales can be recognized over four years when property stays in long-term agricultural use—easing cash-flow hits and succession plans.Featured Tax Tip Waiting tables or bartending in 2025? Track tips daily with a simple phone spreadsheet—the first $25 k you record could be 100 % tax-free under the new exclusion. Stay tuned! Subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts — and as always, Keep More of What You Earn.

24 min
07/28/2025

How To Lower Your Tax Bill Episode 26

Episode 26 – “Decoding the ‘One Big Beautiful Bill’: How the New Tax Law Impacts Families & Businesses (Part 1)” In this webinar-style episode, host Terrence Hutchins teams up with tax partner David Stevens to unpack the sweeping “One Big Beautiful Bill.” If you’re an individual taxpayer, parent, real-estate investor, or small-business owner wondering what stays, what changes, and where new savings may hide, this conversation is for you. Key Takeaways 2018 rate brackets made permanent – the top rate holds at 37 %, averting a scheduled jump back to 39.6 % and sparing most filers an automatic tax hikeHigher, inflation-indexed child tax credit – boosted from $2,000 to $2,200 per qualifying child and set to rise with the CPIStandard deduction locked in – roughly the first $31,500 of married-filing-joint income remains tax-free, keeping itemizing optional for ~70 % of householdsEstate & gift exemption climbs to $15 million per person, giving high-net-worth families fresh breathing room for legacy planningBusiness-friendly perks – 100 % bonus depreciation and an expanded $2.5 million §179 expensing limit become permanent, super-charging upfront deductions on equipment and cost-seg studiesPaperwork relief – 1099-MISC/K reporting kicks in at $2,000 (up from $600), reducing the form flood for contractors and platformsFeatured Tax Tip Considering a major equipment purchase or a cost-segregation study? Lock it in while 100 % bonus depreciation and the beefed-up §179 limits are available—front-loading those deductions can offset other active or passive income this year. Subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts and, as always, Keep More of What You Earn.

20 min
07/17/2025

How To Lower Your Tax Bill Episode 25

Episode 25: What To Do With Business Profits — And How They Affect Your Taxes If you’re a small business owner or aspiring entrepreneur wondering what happens after you make a profit, this episode is for you. Host Terrance Hutchins and guest Tamia break down how to think about your business income strategically, plan for taxes, and avoid common mistakes that lead to IRS trouble. Learn how to shift your mindset from just “owning a job” to building a profitable, sustainable company that pays you and funds future growth. Key Discussion Points: Why paying yourself a fair market salary is crucial to measuring true profitThe “two hats” every owner wears: employee and shareholder — and how each is taxedFive smart ways to use profits: paying taxes, paying off debt, retaining as reserves, reinvesting in the business, and taking owner distributionsHow to plan ahead for quarterly tax payments to avoid penalties and stressPractical examples of overlooked deductions like the Augusta Rule, home office, mileage, and kids on payrollFeatured Tax Tip: Always treat taxes as a business expense — factor them in like rent or payroll. Look at your prior tax returns (line 24 divided by line 11) to estimate your tax percentage, then set aside that portion of every dollar you make to stay ahead of the IRS. Planning for taxes is just as important as planning your next client pitch or hiring decision. Build tax savings into your cash flow now so you don’t get stuck paying penalties later. Subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts — and Keep More of What You Earn.

26 min
07/11/2025

How to Lower Your Tax Bill Episode 24

From Laid Off to Launched — A Real Talk on Starting Your Business and Managing Taxes. Thinking about starting your own business? In this episode, host Terrence Hutchins sits down with co-host Tamia Kelly for an honest, behind-the-scenes conversation about her journey from corporate layoff to launching her own insurance agency. If you’ve wondered what really goes into starting a business — and how to handle the tax side — this episode is for you. Key Highlights: Why Tamia decided to start her insurance agency after being laid off — and how she knew it couldn’t just be a side hustle.The unexpected costs and overlooked expenses every new business owner should plan for.How the IRS treats start-up and operational expenses — and why forecasting matters.The pitfalls of self-funding vs. taking a business loan — and how each affects your taxes.A practical breakdown of sweat equity, capital investment, and how to plan for ROI.Featured Tax Tip: Did you know the IRS lets you deduct up to $5,000 of qualifying start-up expenses — but only if you plan and track them correctly? Good forecasting and clear separation of business vs. personal funds can help you maximize this deduction and avoid surprises at tax time. If you’re dreaming of starting your own business — or already in the middle of it — Tamia’s lessons learned will help you do it wisely, stay tax-smart, and avoid rookie mistakes. Subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts. Keep More of What You Earn.

33 min
06/26/2025

How to Lower Your Tax Bill Episode 22

Is Starting a Business Worth It? A Financial Reality Check Thinking of launching a business to save on taxes? In this episode, Terrence Hutchins and co-host T’mia break down what many aspiring entrepreneurs overlook: the true financial costs of starting a business—and whether it's worth your time. This is the first of a three-part series unpacking the mindset, math, and tax implications behind the decision to become a business owner. Perfect for side hustlers, freelancers, or anyone evaluating whether entrepreneurship is the right path, this episode walks through a practical framework to help you decide with clarity and confidence. Key Takeaways: Profit vs. Passion: Why business should be about making money, not just saving on taxes or chasing passion alone.Know Your Worth: How to calculate your hourly rate and determine if your business idea can exceed that value.Startup vs. Operating Costs: Learn the difference between upfront and ongoing expenses—and why many new business owners underestimate both.Minimum Revenue Math: Use this formula to reverse-engineer how much income you need to make entrepreneurship viable.Value-Based Pricing: Six reasons people will pay you—and how to communicate that value without underselling yourself.Featured Tax Tip: Startup Write-Offs: The IRS allows up to $5,000 in organizational expenses and $5,000 in startup expenses to be deducted in your first year of business—if you have a genuine profit motive. Don't mistake a hobby for a company, or you'll lose this powerful benefit. Leaping into entrepreneurship can offer freedom, but it’s not free. Listen in to learn how to value your time, price your services, and plan for taxes before you dive in. Subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts. Keep More of What You Earn.

26 min

The goal of this podcast is to help educate our listeners on tax strategies and offer concrete steps you can implement to improve your tax situation immediately. Each episode, we break down useful tax tips you can use to save money, no matter what your business or personal income situation is.

Creator

Terrance Hutchins
Years Active

2024 - 2025
Episodes

30
Rating

Clean
Copyright

© Logos Tax and Business Solutions 2024
Show Website

How to Lower Your Tax Bill