Small Business Tax Savings Podcast Mike Jesowshek, CPA

How Is Your Income Taxed? In this episode of the Small Business Tax Savings Podcast, Mike breaks down the basics of taxation so that listeners can create a roadmap for their own businesses.
Mike explains two main types of tax – ordinary income tax and capital gains tax, as well as self-employment taxes and FICA taxation for W2 employees. He covers the different types of income taxes, such as earned income, passive income, and portfolio or investment income.
Tune in now as Mike uncovers the complexities of taxation and learn how it can help you become informed on ways to pay the least amount of taxes legally possible!


[00:25] Understanding How Taxes Work
Today’s episode is, “How Is Your Income Taxed?”There are two main types of tax: ordinary income tax and capital gains taxOrdinary income tax rates depend on factors such as marital status, household status, etc.[01:29] The Difference Between Ordinary Income Tax and Capital Gains Tax Rates
Ordinary income tax rates depend on factors such as marital status, household status, etc.Capital gains tax are taxed at preferred rates of 0%, 15%, or 20% compared to the ordinary income tax rateShort-term capital gains, assets held for less than a year, are taxed at an ordinary income tax rateEarned income is taxed at the ordinary income tax rate and self-employment taxes may apply[12:40] The Benefits Of Passive Income and Investment Income
Passive income is not subject to FICA or self-employment taxesPassive losses can only offset passive incomePortfolio or investment income is taxed at ordinary income tax ratesFor assets held for more than one-year, a preferred capital gains tax of 0%, 15%, or 20% depending on the income is applicable [15:38] Closing Segment
Mike shares his knowledge in order for listeners to uncover the complexities of taxation and learn how it can help you become informed on ways to pay the least amount of taxes legally possible!Final Words

Key Quotes
“I would never advise every business owner to fully understand taxes. That's why we have accountants. That's why, we come in and help clients in certain areas. But having a basic understanding of how tax works is so key to a really painless amount of taxes legally possible. It's important for you as a business owner to have that foundation knowledge.” – Mike Jesowshek, CPA


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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax


IncSight Packages: https://incsight.net/pricing/


Book an Initial Consultation: 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/
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To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

What Retirement Plan Options Are Available For My Business in 2023? In this episode of the Small Business Tax Savings Podcast, Mike interviews Matt Ruttenberg from Life Inc. Retirement Services about retirement plan options available for small businesses in 2023.
Matt dives into the different types of retirement plans available for business owners, including traditional IRAs, ROTH IRAs, SEP IRAs, Solo 401Ks, Simple IRAs, and the new Starter 401K coming out in 2014. 


Tune in now as Matt discusses the importance of saving money on taxes and creating a secure future for themselves and their employees!


[00:30] Retirement Plan Options For Small Business Owners
Today’s episode is all about retirement plan options that are available for your business in 2023Mike interviews Matt Rutenberg, the CMO at Life, Inc. Retirement Services[09:00] Maximize Retirement Savings with SEP IRA, Solo 401K, and Simple IRA Options
The goal of a retirement plan is to save money on taxes or recruit/retrain employeesTraditional IRA and ROTH IRA available for personal retirement savingsSEP IRA option for solo business owners with employer contributions up to $66, 000He hints that ROTH contributions may be allowed into SEP IRAs[12:30] Exploring Retirement Options For Business Owners
SEP IRA has a maximum contribution of $25, 000Solo 401K is a better option as it allows for an additional employee contribution of $22, 500 in 2023Traditional IRA and ROTH IRA are the two main retirement options for solo business owners with no outside employeesPayroll-directed IRA is available for business owners with outside employees or non-owner, non-family members      [19: 00] Closing Segment
Matt offers his advice on the importance of saving money on taxes and creating a secure future for themselves and their employees!Final Words

Connect with Matt!
Website: Life Inc.
LinkedIn: Matt Ruttenberg
Twitter:  @Matt_Ruttenberg
Instagram: @Matt_Ruttenberg
Facebook: Life Inc. Retirement


Key Quotes
“If you're trying to segment out certain employees or yourself, you might have to go towards a non-qualified plan because if you have a qualified plan like a 401k, Simple, there's rules and fairness… If you are non-qualified, it removes all those fairness rules, and then you can start targeting certain individuals and so on and so forth.” – Matt Ruttenberg


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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax


IncSight Packages: https://incsight.net/pricing/


Book an Initial Consultation: 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/
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To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

How do you avoid an IRS audit? In this episode of the Small Business Tax Savings Podcast, Mike discusses how to prevent an IRS audit, from co-mingling personal and business expenses to having separate bank accounts and credit banks, ditching cash payments, and taking bookkeeping seriously.
Mike provides tips on what’s needed for business purposes and how to prove payment. He explains the details behind documenting automobile expenses like mileage logs and receipts to support the business purpose.

Tune in now as Mike shares his advice on being aggressive in taking advantage of laws that are advantageous to you, so you can ensure you have all the documentation you need for your expenses in case of an audit!


[00:25] The Best Practices To Avoid An IRS Audit
Today’s episode is all about avoiding an IRS auditWhat are the best ways to avoid an IRS audit?[05:00] How To Avoid An IRS Audit As A Small Business Owner
The documentation needed for business expenses:Receipt/invoice with a dollar amountProof of paymentItemized receipts are recommended to have as much detail as possibleWho, what, where, when, and why should be written directly on the receipt for any business expense?[07:16] Understanding What Documentation Is Needed For Business Expenses And Automobile Expenses
Proof of payment is required to ensure that a payment was made for the itemDocumentation should be kept in a digital fileA mileage log is required for automobile expensesDocumentation should include details of the business purpose of the trip  [15: 55] Closing Segment
Mike shares his advice on being aggressive in taking advantage of laws that are advantageous to you!Final Words

Key Quotes
“As a business owner, you have a huge advantage… You have nothing to worry about because you have all the documentation to back it up. Be aggressive. We always say be aggressive, but don't get greedy.” – Mike Jesowshek


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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax


IncSight Packages: https://incsight.net/pricing/


Book an Initial Consultation: 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/
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To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Are you struggling to save money on your small business taxes? In this episode of the Small Business Tax Savings Podcast, Mike discusses how to maximize meals and travel deductions, separate entertainment expenses from meals, and find a business purpose for all meetings that involve food or drinks.
Mike provides examples of deductible meal expenses such as dining with prospects or staff members, company parties and presentations, team-building activities, recreational events and more.
Mike adds more items that are eligible for deductions, which are transportation costs, lodging expenses, and rental cars.


Tune in now as Mike shares an example of how a road trip can be used as both a business trip and a personal vacation if planned correctly!


[00:00] Maximizing Tax Deductions For Meals And Travel
Today’s episode is all about maximizing meals and travel deductions!Mike states that starting in 2018 with the Tax Cuts and Jobs Act, entertainment expenses are no longer deductible, but the meal portion around that entertainment can be expenses[01:38] Unlocking The Potential Of Travel Expenses
Company parties or presentations and food for restaurants are 100% deductibleMeals are generally 50% deductible when dining with a prospect, client, vendor, staff member, or team memberMike provides examples of expenses:Potential client/employee team mealsCompany parties/presentationsOffice meals and foodFood and drinks at golf outingsTeam building/recreational eventsMeals at a country club[13:59] Maximizing Business Deductions And Write-Offs
Meal and drink of a country club membership is deductible if used for business purposesSolo meals and drinks are deductible if it is part of a business meeting or on an overnight tripTravel expenses such as transportation, lodging, car rentals, tolls, parking, taxies, Uber are deductibleWhat is considered a “Business day”?  [15: 53] Closing Segment
Mike shares how a road trip can be used as both a business trip and a personal vacation if it’s planned correctly!Final Words

Key Quotes
“Don't get greedy. Do the sniff test on these items, and make sure you're documenting and supporting to help back all this up.” – Mike Jesowshek


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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax


IncSight Packages: https://incsight.net/pricing/


Book an Initial Consultation: 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/
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To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

How Can I Maximize Office Expenses and Employee Benefits? In this episode of the Small Business Tax Savings Podcast, Mike discusses how to shift from after-tax spending to pre-tax spending, highlighting acceptable expenses that qualify as ordinary and necessary.


Mike offers a guide to maximizing available business deductions and discusses planning opportunities for maximizing deductions in technology write-offs, subscriptions, and memberships.


Mike emphasizes the importance of finding business purposes for expenses in order to take advantage of tax deductions as a business owner. He talks about de minimis benefits which are small and infrequent gifts or items that can be given to employees without tax.


Tune in now as Mike offers an ultimate guide to business deductions at his website and learn valuable insights on office expenses and employee benefits! 


[00:00] Maximizing Office Expenses And Employee Benefits For Small Business Owners
Today’s episode is about how you can maximize office expenses and employee benefitsMaximizing shift toward expenses and employee benefits for small business ownersThe mindset shift towards pre-tax spending instead of after-tax spending[05:56] Planning Opportunities For Business Owners
What is included in employee benefit expenses?Capitalization and depreciation for items over $2, 500Technology write-offs overlooked by business ownersSubscriptions and memberships can have a business purpose and be deductible[10:11] Maximizing Tax Deductions Through De Minimis Fringe Benefits
Planning opportunities to maximize deductions for business ownersDe Minimis benefits are small and infrequent gifts that are tax-free to the recipient and deductible for the businessWhat is not included with de Minimis benefits?The activity must be primarily for the benefit of employees other than highly compensated employees, owners, and family members[13:36] Closing Segment
Mike advises listeners that maximizing deductions requires a mindset shift toward pre-tax expenses and an understanding as a business deductionFinal Words

Key Quotes
“If we can find a business purpose for it, it's ordinary and necessary in our business, we have that business purpose, we have support to back that up, that can be a business expense.” – Mike Jesowshek


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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax


IncSight Packages: https://incsight.net/pricing/


Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
--------
To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

Did you know that there are many tax deductions available that can help you save money? In this episode of the Small Business Tax Savings Podcast, Mike discusses maximizing advertising and gift deductions, which is part of a bigger series on business deductions and write-offs.
Mike talks about advertising expenses, these refer to costs associated with promoting a company or brand through media buys, social media, website creation, and influencer marketing, among others. The key is finding a business purpose for everyday spending to turn into pre-tax spending.
Mike explores the different ways to maximize tax deductions through charitable contributions, advertising expenses, and gift expenses. He delves into ways to categorize gifts as advertising expenses, such as placing logos on items or using them for training.


Tune in now and check out Mike’s guide for more in-depth information on maximizing deductions while growing your small business! 


[00:00] Maximizing Advertising And Gift Deductions For Small Business Owners
Today’s episode is about Maximizing  Advertising and Gift DeductionsAdvertising expenses include promoting your business through various channels such as TV, Radio, Social Media, websites, etc.Gift expenses can be deductible if they are ordinary and necessary business expenses[00:50] Planning Opportunities For Business Owners
The goal is to turn after-tax spending into pre-tax spending by finding a business purpose for everyday spendingSwag items with company logos are considered advertising expensesAdvertising expenses include promoting the brand at conventions or through contestsPlanning opportunities exist to move spending from channels[09:33] Turning Charitable Contributions Into Advertising Expenses
Sponsoring a charity event or doing a charity drive can be considered an advertising expense if it leads to business growthReview-based donation systemPlanning opportunities for gift expenses include different categorizations and gifting to married couples or familiesBranding and logo can turn gifts into advertising expenses [14:17] Closing Segment
Mike advises listeners that any items that cost $4 or less with your name on it are not considered gifts by the IRS  Final Words

Key Quotes
“With the Tax Cuts and Job Act, the new standard deduction is increased. So many people actually lose out on getting a tax advantage of giving to charity if their itemized deduction is lower than what the standard is. So, if you can find a way to tie this type of spending to advertising, you can take it as an advertising expense, which is going to be more beneficial to you than a charitable contribution.” – Mike Jesowshek


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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast
Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax


IncSight Packages: https://incsight.net/pricing/


Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale
-------
Podcast Website: https://www.TaxSavingsPodcast.com
Facebook Group: https://www.facebook.com/groups/taxsavings/
--------
To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com