Are you still afraid to deduct certain business expenses because you think the IRS might come after you for it? Meals. Travel. Home office. Vehicle expenses. Software. Education. Coaching. Even paying your kids. These deductions can feel risky when the lines between personal and business spending are not clear. In this episode, Mike breaks down the business expenses many owners skip out of fear, and explains how to think about deductions the right way. You will learn what “ordinary and necessary” really means, why documentation matters more than fear, and why playing it too safe can cost you thousands. 👉 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/ Chapters (01:15) How the Tax Code Incentivizes Business Owners The tax code is designed to encourage certain actions, like building businesses, hiring employees, creating housing, and growing the economy. The goal is to understand the incentives and implement them legally. (03:00) The “Ordinary and Necessary” Rule A business expense generally needs to be ordinary and necessary. Ordinary means it is common in your industry. Necessary means it helps your business operate, grow, or function properly. (06:30) Small Recurring Expenses That Add Up Software, AI tools, phones, laptops, Zoom, cloud storage, project management tools, internet, and office equipment may seem small, but repeated monthly expenses can become meaningful deductions over time. (07:30) Home Office, Vehicle, and Professional Development Deductions Home office, vehicle expenses, education, coaching, masterminds, certifications, training, and industry events are deductions business owners often hesitate to claim. (13:00) Paying Your Kids and Family Members Hiring your kids or family members can be a legitimate tax strategy when the work is real, the pay is reasonable, and the process is properly documented. (14:00) The Real Audit Trigger Is Weak Documentation Poor bookkeeping, missing receipts, weak records, and sloppy implementation are what usually create risk. (15:00) The Auditor Sniff Test Can you explain the business purpose clearly to an auditor? If you can support it with a straight face and proper records, you’re in a stronger position. Podcast Host: Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast Join TaxElm: https://taxelm.com 🚀 Visit: https://www.TaxSavingsPodcast.com 🚀 Check Out TaxElm: https://taxelm.com/ 🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/ 🚀 YouTube: 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.
