Small Business Tax Savings Podcast Mike Jesowshek, CPA

Have you ever wondered how to structure your multiple business ventures efficiently while minimizing your tax burden? 


Mike Jesowshek delves into the complexities of business structuring, particularly for individuals owning multiple businesses or in partnership. He emphasizes the utility of S Corporations in reducing self-employment taxes and the importance of establishing a parent S Corporation to streamline business operations, financial management, and tax filing. Mike advocates for separate bookkeeping for each entity, despite their consolidation under the parent S Corp, to maintain clarity in financial and legal aspects.


[00:00 - 04:20] Introduction to Business Structuring and Exploring S Corporation Complexities
Mike Jesowshek discusses the importance of structuring for business owners with multiple ventures or partnerships. He introduces the concept of S Corporations and their benefits.Mike elaborates on the complexities and requirements of maintaining S Corporations, like payroll and tax filings.

[04:20 - 07:03] Structuring for Operational Efficiency
The conversation shifts to operational structuring, emphasizing separate bookkeeping for legal and financial clarity.Mike stresses the importance of having a singular parent S Corporation owning other businesses.

[07:03 - 11:32] Tax Considerations and Partnership Structures
What are the tax implications and structuring options for partnerships?Mike discusses different scenarios where S Corporations can benefit or complicate partnership arrangements.

[11:32 - 20:09] Practical Tips and Conclusion
Mike shares his concluding thoughts on business structuring with a focus on legal consultation and tax efficiency.He wraps up by encouraging listeners to plan their business structure mindfully and consult professionals.


Direct Quotes:


"When we talk about S Corporations, obviously the goal is to minimize self-employment taxes, but S Corps comes with some complexities as well." - Mike Jesowshek, CPA


"We want to have one company that we're actively participating in running through with all of our income before touching us. And we want that company to be in most cases, an S corporation." - Mike Jesowshek, CPA


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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast


Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale


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Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings 

Are you perplexed by estimated taxes and worried about potential penalties? Discover how to navigate the U.S. tax system's pay-as-you-go approach and strategically plan your payments to stay on top of your tax obligations!


In this episode, Mike Jesowshek discusses the importance of understanding and paying estimated taxes in the U.S., emphasizing the "pay as you go" system. He explains the concept of estimated taxes, key due dates for each quarter, and the significance of making timely payments to avoid penalties and interest. Mike introduces the "safe harbor" rule, which helps taxpayers avoid penalties if they pay a certain percentage of their previous year's tax or their current year's expected tax liability.


[00:00 - 01:21] Introduction to Estimated Taxes
Mike Jesowshek introduces the topic of estimated taxes, explaining the pay-as-you-go system and upcoming deadlines.

[01:21 - 02:45] The Mechanics of Withholding
Mike discusses how withholding works for W-2 employees and the responsibilities of business owners for making tax payments.

[02:45 - 04:32] Year-End Reconciliation and Tax Refunds
What is year-end tax reconciliation and what are the misconceptions about tax refunds?  
[04:32 - 06:28] Estimated Tax Due Dates and Payment
Mike clarifies the quarterly tax payment due dates and the reasoning behind them.

[06:28 - 10:50] Safe Harbor Rule and Calculating Estimated Taxes
Mike talks about the safe harbor rule, how to calculate estimated taxes and the differences based on adjusted gross income.

[10:50 - 17:06] Actual Method and Recap
What is the actual method for calculating estimated taxes and the importance of planning for fluctuating business income?


Direct Quotes:


"A refund doesn't mean you saved money on taxes; it's just saying you paid too much in taxes throughout the year." - Mike Jesowshek, CPA


"Estimated taxes are the way that business owners can make payments against that future tax bill as they're earning money." - Mike Jesowshek, CPA


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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
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Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings 

We’re thrilled to invite you to our complimentary webinar, “Slash Your 2024 Taxes: Essential Strategies for Small Business Owners.” Join us for a session packed with valuable insights to minimize your tax bill.

Topic: Slash Your 2024 Taxes: Essential Strategies for Small Business Owners
Date: Wednesday April 24, 2024
Time: 2pm EST
Sign-Up: https://www.taxsavingspodcast.com/slashtaxes

In this webinar, you’ll learn how to:
Maximize Deductions: Identify and claim all the deductions you’re entitled to.Strategic Tax Planning: Structure your finances to optimize tax benefits.Experience Top Tax Strategies: Learn about the incentives the IRS gives small business owners so you can implement them. Interactive Q&A: Get answers from tax experts to your specific questions.This is a must-attend event for any business owner eager to keep more of their hard-earned money. Register now for free and ensure your spot in this transformative session!

As always, our goal is to ensure you pay the least amount in taxes as legally possible!

Sign-Up: https://www.taxsavingspodcast.com/slashtaxes

Are you maximizing the potential of your real estate investments through 1031 exchanges and Opportunity Zones?


In this podcast, Mike Jesowshek and guest Michael Scherer delve into the intricacies of 1031 exchanges, focusing on various replacement property options, including Delaware Statutory Trusts (DSTs) and Qualified Opportunity Zones. They discuss the advantages of passive investment through DSTs, the strategic importance of planning and consulting with tax advisors, and the potential tax deferral benefits of investing in Opportunity Zones. The conversation emphasizes the need for investors to align their investment choices with their financial goals and the importance of thorough planning.


[00:00 - 04:37] Replacement Property Options and Delaware Statutory Trusts (DSTs) in 1031 Exchanges
Mike Jesowshek introduces the topic and welcomes back expert Michael Scherer to discuss 1031 exchange replacement properties and Opportunity Zones.Michael explains the concept of Delaware Statutory Trusts as a passive investment option for 1031 exchanges.

[04:38 - 06:17] Direct Real Estate Investment vs. Passive DST Investment
Michael compares the differences between active real estate investments and passive DST investments.What are the investor involvement and management responsibilities in different types of investments?

[06:18 - 12:59] Strategies for Maximizing Tax Deferral and Qualified Opportunity Zones as an Investment Avenue
Exploring methods for achieving full tax deferral by combining different investment strategies, like DSTs and direct property purchases.Michael highlights the Importance of strategic planning and advisory collaboration.

[12:59 - 19:06] Navigating the Complexity of 1031 Exchanges and Investment Options
How to approach 1031 exchanges, including the importance of selecting the right replacement properties?Michael explains the concept of Qualified Opportunity Zones, their benefits, and the tax implications involved.Opportunity Zones can serve as a fallback for failed 1031 exchanges or as a strategic choice for deferring taxes.

[19:07 - 22:57] The Importance of Planning and Expert Advice
Michael emphasizes the value of expert advice and the need for early planning in the investment process.


Direct Quotes:


"Understanding the investor's goals and objectives and working with their tax advisor is critical." - Michael Scherer


"It all comes down to planning and understanding what your objectives are." - Michael Scherer



Connect with Michael!
LinkedIn: https://www.linkedin.com/in/michael-scherer-caia-8147504/ 
Email: levi.smith@rcxcapitalgroup.com 


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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com/
IncSight Packages (Full-Service): https://incsight.net/pricing/
Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
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Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
YouTube: https://www.youtube.com/@TaxSavings 

Are you maximizing your real estate investment potential through tax-deferred strategies? 


Mike Jesowshek and Michael Scherer delve into the intricacies of 1031 exchanges. They explain its purpose, benefits, and the critical role of proper planning and advice from tax advisors. They emphasize the necessity of involving a qualified intermediary and the potential financial advantages, including tax deferral and strategic reinvestment, to maximize wealth building in real estate investment.


[00:00 - 04:52] 1031 Exchanges and its Planning and Prerequisites
Mike Jesowshek introduces the topic and guest Michael Scherer from RCX Capital Group.They discuss the significance of 1031 exchanges in real estate tax strategy.Key aspects of initiating a 1031 exchange including the role of tax advisors and ownership structure, are discussed.

[04:53 -12:22] 1031 Exchange Process, Timelines, and Exploring Replacement Property Options
Michael explains the strict timelines and procedural steps involved in a 1031 exchange and the importance of investing in like-kind properties for tax deferral. He explores like-kind exchange requirements and potential replacement properties.

[12:22 - 16:22] Liquidity and Investment Goals in 1031 Exchanges
How does the liquidity aspect of investments affect 1031 exchange decisions?Investment goals and timelines should align with 1031 exchange strategies.

[16:22 - 20:04] Final Steps and the Role of RCX Capital Group in 1031 Exchange
Michael gives an overview of the final steps in the 1031 exchange process, focusing on replacement property identification and closing within set deadlines.He shares the importance of understanding and planning for the financial and legal intricacies of the exchange process.

[20:05 - 24:23] Common Mistakes and Wrap-Up
Michael outlines common mistakes in 1031 exchanges, emphasizing the need for early planning and professional guidance.Final thoughts on the importance of understanding 1031 exchanges as part of a comprehensive real estate investment strategy.


Direct Quotes:


"1031 exchange is an exceptional tool for wealth building, but something that you need to plan around." - Michael Scherer


"Proper planning is essential. Talk through your options, understand your goals and objectives." - Michael Scherer


"One of the most amazing wealth-building tools is section 1031." - Michael Scherer



Connect with Michael!
LinkedIn: https://www.linkedin.com/in/michael-scherer-caia-8147504/ 
Email: levi.smith@rcxcapitalgroup.com 


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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast


Join TaxElm: https://taxelm.com/


IncSight Packages (Full-Service): https://incsight.net/pricing/


Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale


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Podcast Website: https://www.TaxSavingsPodcast.com


Facebook Group: https://www.facebook.com/groups/taxsavings/


YouTube: https://www.youtube.com/@TaxSavings 

Ever wondered how you could significantly reduce your taxable income from real estate investments in just one year?


In this episode, Mike Jesowshek introduces Gabriel Florentino from Engineered Tax Services to discuss cost segregation studies, a tax strategy for real estate investors aiming to accelerate depreciation deductions. Gabriel explains the concept and benefits of cost segregation, emphasizing its significant impact on reducing taxable income by identifying and reclassifying property components to shorter depreciable lives. The discussion also covers the importance of understanding accounting terms, the difference between cost segregation and traditional depreciation methods, and the added advantage of bonus depreciation introduced in 2017, which allows for even greater tax savings in the early years of property ownership.


[00:00 - 08:37] Cost Segregation Studies
Mike introduces Gabriel Florentino to discuss how cost segregation can be a key tax planning strategy for real estate investments.Cost segregation allows for accelerated depreciation, offering significant tax benefits.Gabriel explains cost segregation as a method to write off 25-30% of a real estate asset's purchase price in the first year.
[08:38 - 14:36] The Impact of Bonus Depreciation
Bonus depreciation, starting in 2017, boosts the benefits of cost segregation by allowing immediate depreciation of certain assets.Gabriel highlights the significant tax savings achievable, even as bonus depreciation percentages change over time.

[14:37 - 19:52] Practical Examples and Cost Study Analysis
Gabriel provides examples demonstrating the financial benefits of cost segregation and addresses the costs associated with conducting a study.Insights into the factors affecting the cost of a cost segregation study, including property type and location.

[19:53 - 22:08] Conclusion and Final Thoughts
Emphasis on the value of cost segregation for both active and passive real estate investors.Gabriel mentions the complimentary benefit analysis offered to evaluate the potential benefits of conducting a cost segregation study.


Direct Quotes:


"Even if it's sunsetting, there is still a huge benefit of doing a cost seg study on a property." - Gabriel Florentino


"Cost segregation study is still a strong tool because you're getting the real value of depreciation for a lot of components inside a property." - Gabriel Florentino



Connect with Gabriel!
Email: gflorentino@engineeredtaxservices.com 
Website: https://engineeredtaxservices.com 


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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast


Join TaxElm: https://taxelm.com/


IncSight Packages (Full-Service): https://incsight.net/pricing/


Book an Initial Consultation (IncSight): https://app.simplymeet.me/o/incsight/sale
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Podcast Website: https://www.TaxSavingsPodcast.com


Facebook Group: https://www.facebook.com/groups/taxsavings/


YouTube: https://www.youtube.com/@TaxSavings