Advanced Tax Strategies For Business Owners (SIMPLIFIED)

Small Business Tax Savings Podcast

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Are you overpaying on taxes and missing out on key deductions that could boost your business's bottom line?

In this episode, CPA Mike Jesowshek shares advanced tax strategies that empower business owners to significantly reduce their tax liabilities while building wealth. Mike addresses common challenges business owners face when minimizing taxes and introduces actionable tactics such as the 14-day home rental rule, implementing an accountable plan, and leveraging charitable contributions. With a focus on proper documentation and compliance, Mike provides insights on transforming potential tax burdens into effective deductions. He also presents TaxElm, a tax software tailored for business owners looking to maximize tax savings efficiently and responsibly.

[00:00 - 05:36] Introduction to Advanced Tax Strategies

• Mike introduces his goal to reveal tested tax strategies for saving significant money.
• Reasons for struggles: not knowing where to start, being overwhelmed by complexity, and spending time without professional guidance.
• Strategy #1: The 14-Day Home Rental Rule (Augusta Rule)
• Key steps: establishing a rental reason, finding a reasonable rate, and documenting proof.

[05:36 - 11:14] Strategy #2: Implementing an Accountable Plan

• Mike details how S corporations can set up accountable plans for reimbursements on business expenses like home office use, automobile, and utilities.
• He shares the importance of a written policy and detailed expense reporting for compliance.

[11:14 - 17:42] Strategy #3: Advanced Tax Strategies for High-Income Earners

• For those earning $350,000+, Mike shares insights on leveraging charitable contributions, business investments, and more to offset income.
• Emphasizes correct implementation to avoid potential IRS scrutiny.

[17:42 - 25:45] Short-Term Rental Loophole and Hiring Your Children for Business Deduction

• Short-term rentals (average stay of 7 days or less) are considered non-passive, allowing business owners to offset W-2 or business income.
• Mike shares the guidelines for hiring children aged 7-18 in the business for tax deductions.
• Compliance essentials: setting reasonable pay, tracking work hours, and direct payments.

[25:45 - 29:43] Conclusion and Introduction to TaxElm

• Mike introduces TaxElm, a software designed to help business owners implement these strategies and maximize tax savings.

Direct Quotes:

"These aren’t just theories; they are battle-tested methods that have saved my clients millions in taxes over the years." - Mike Jesowshek, CPA

"The right tax strategies can transform a business’s financial health." - Mike Jesowshek, CPA

"These strategies can take you from being an anxious and overwhelmed business owner to one who walks around with confidence and a sense of control." - 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/

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