Small Business Tax Savings Podcast

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Do you want to understand how retirement savings for small business owners work?

In this episode, Mike welcomes Steven Jarvis, CPA, the host of the Retirement Tax Podcast. Steven provides insight on saving for retirement, especially for small business owners, and discusses the potential tax advantages. Steven also dives into the difference between pre-tax and Roth contributions, and shares tips for managing changes in tax situations in life events such as loss of a spouse or divorce. Lastly, Steven emphasizes the need to take action based on informed decisions to ensure maximum tax efficiency.

[00:00 - 05:10] Retirement Savings Strategies

• Steven discusses the importance of retirement planning for entrepreneurs, contrasting it with employee retirement plans.
• There is a need for realistic expectations of business valuation at retirement.
• Business owners need to update their retirement plans as their business evolves and grows.

[05:10 - 12:22] Financial Planning for Business Owners

• Steven emphasizes the need for business owners to start thinking about retirement planning and seeking financial advisors.
• Business owners face complexities and decision-making challenges regarding retirement plans compared to W-2 employees.
• Steven explores the differences between pre-tax and Roth contributions, including the impact of future tax rates and personal financial situations on these decisions.
• The importance of understanding and preparing for the tax implications of inheriting IRAs and the differing rules for spouses and non-spousal beneficiaries is covered.

[12:22 - 15:50] Tax Implications of Life-Changing Events

• Steven talks about the shift in tax filing status and the need for tax planning after the loss of a spouse.
• The loss of a spouse affects real estate tax strategies, especially when the spouse is a real estate professional.
• Steven encourages us to focus on emotional healing before tackling financial adjustments.

[15:50 - 17:40] Closing Segment

Quotes:

"We need to make great decisions and then figure out the most tax efficient way to do that." - Steven Jarvis, CPA

"The more typical experience for small business owners is that they spend their whole life working on this business that is going to always be more valuable to them than it's going to be to someone else." - Steven Jarvis, CPA

"The IRS rules have changed, but the paperwork needs to catch up with it." - Steven Jarvis, CPA

"Part of the reason we do long-term planning is to address some of life's inevitabilities." - Steven Jarvis, CPA

Connect with Steven!

LinkedIn

Retirement Tax Strategies Podcast

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

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

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With January fast approaching, it’s important for business owners to start preparing their 1099-NECs. If you want to stay ahead and get everything in order before the deadline, this episode is for you! We discuss whether or not a transaction needs a 1099, what the process for filing is, and what will happen if you missed filing a 1099.

[01:07] Fast Facts About 1099-NECs

• If your business pays a subcontractor or vendor, whether it’s an individual or a company, a total of $600+, you need to request a W9 so you can send them a 1099-NEC
• If you received a 1099-NEC as a contractor, you must report this income to the IRS
• Be it one-time or accumulative, as long as the total payment is over $600, you need to file a 1099-NEC

[04:05] When It Is NOT Required to File 1099-NECs

• Payments to C or S Corporations
• Employees
• Payments for merchandise, telephone, freight, or storage
• Payments to non-U.S. citizens performing work outside of the U.S
• Payments made via Credit Card or PayPal

[06:25] 1099-NEC Preparation Made Easy

• Step 1 – Collect a W9 from all contractors before you pay
• Step 2 – Fill out the 1099-NEC
• Step 3 – Send a copy of the 1099-NEC form to the contractor
• Step 4 – File a copy of the 1099-NEC with the IRS and State (if required)
• For contractors who are non-U.S. citizens - get an accomplished W8-BEN or W8-BEN-E instead

[08:54] Penalties for Failing to File a 1099-NEC

• 1099-NECs must be filed at the IRS and sent to the recipient by January 31st of the following year
• The fine will depend on how late you are

[10:16] Different Types of 1099s

• There are over 15 types of 1099 forms that are used for various purposes

[12:30] Final Thoughts

• Do that legwork now so you can get on top of the forms needed
• Utilize software to make processing and filing easier

Key Quotes

“If you are the one paying the contractor, you are the one that files the 1099-NEC.” - Mike Jesowshek

“Sometimes it's hard to get a W9 from someone after the fact so just ask for it upfront. Again, one rule of thumb before you pay anyone, collect a W9 from them.” - Mike Jesowshek

Resources Mentioned

• Blog Post: https://www.taxsavingspodcast.com/blog/what-do-i-need-to-know-about-1099s-for-business-owners
• Software: https://www.track1099.com/
• Downloads:
  • IRS: Instructions for Forms 1099-MISC and 1099-NEC
  • IRS: Form 1099-NEC
  • IRS: Form 1099-MISC

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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

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Being an entrepreneur can be challenging and having a board of advisors is a great way to get guidance and outside perspective that can positively impact your business. In this episode, we tell you all about its benefits: from tax deductions to personal and professional growth.

[00:58] Tax Advantages of Board Meetings

• A board of advisors or advisory board is a group of people appointed to provide advice and counsel for a business
• The members of your advisory board could be family members, friends, colleagues, or anyone you want to bring in
• Holding regular board meetings can be a tax advantage, as all travel and expenses related to the meetings are deductible except for entertainment expenses
• One way to utilize this advantage is to have board meetings at your home, which is known as the Augusta Rule

[04:41] What Documentation Should I Be Recording or Keeping?

• The meetings must be ordinary and necessary
• Have a record or minutes of the meeting on file to outline what was accomplished and discussed
  • Include who attended, location, time spent, agenda items, outcomes, etc.
• The more documentation, the better
• Keep receipts and store them digitally

[05:53] The Power of Having a Board of Advisors

• With a board of advisors, you get insights from others
  • Depending on your entity structure and location, you may actually be required to hold the annual meeting
• You are held accountable and become motivated to get things done
• Board meetings can also help with planning and alignment because you have the opportunity to think about the future of the business
• It provides stress relief

[08:29] Final Thoughts

• Consult your attorney to know which type of board would be the best for you and how to set it up

Key Quotes

“What better way to not only get a tax deduction but you’re getting your family involved in your business, and they could potentially be better prepared to pass it on in the future to future generations.” - Mike Jesowshek

“If you're having these monthly meetings, it helps keep you accountable. Your board wants to see what was accomplished. They want to see the progress, and this can help move you along.” - Mike Jesowshek

“You can have anybody on your board that you want, as long as you think they're going to be able to provide some great guidance to you and really be a stamping point to help your business out.” - Mike Jesowshek

Resources Mentioned

Blog Posts:

• https://www.taxsavingspodcast.com/blog/how-can-i-utilize-a-board-meeting-for-tax-savings
• https://www.taxsavingspodcast.com/blog/what-is-the-14-day-home-rental-strategy-aka-the-augusta-rule

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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

Send us a text

Are you a small business owner curious about the financial benefits of establishing a retirement plan for your company?

In this episode, Mike Jeshowshek and guest Matt Ruttenberg discuss the substantial tax credits and key due dates associated with setting up retirement plans for small businesses, introduced by Secure 2.0. They delve into specific credits available, such as the startup credit and the auto-enrollment credit, and outline who qualifies for these benefits. Matt provides a detailed explanation of how businesses can maximize these credits, the importance of not missing due dates, and the strategic advantage of starting retirement plans early. They also emphasize the significant tax savings and benefits for small business owners and their employees.

[00:00 - 05:51] Introduction and Overview of the Series

[05:52 - 12:04] Discussing Tax Credits for Retirement Plans

• Matt explains the startup and auto-enrollment credits under Secure 2.0.
• He gives examples of how businesses can utilize these credits.

[12:05 - 18:44] Qualification Criteria and Case Studies

• Matt provided a detailed discussion on who qualifies for the tax credits and a case study illustrating potential savings.

[18:45 - 22:24] Important Due Dates for Implementing Plans

• Matt outlines critical due dates for various retirement plans.
• What is the importance of early planning and meeting deadlines to maximize benefits?

Direct Quote:

"Don't wait until September 15th... It takes roughly 45 to 60 days to implement these plans... So let's start having these conversations and just start looking into it." - Matt Ruttenberg

Connect with Matt Ruttenberg!

LinkedIn: https://www.linkedin.com/in/mattruttenberg/

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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

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Are you ready to create a successful business plan for 2023? On this episode of the Small Business Tax Savings Podcast and hear from Mike on how to set up your business for success. This episode dives into the importance of bookkeeping, tax planning, and strategic planning. Learn how to create a perfect scenario, three- and five-year plans, and a list of action items that need to be completed this year. Find out why having an accountability partner is so important in staying motivated and meeting goals, as well as which websites are great resources for finding more information about tax savings. Finally, get tips on tracking progress during regular board meetings and making adjustments as needed.

[00:00] Discover How to Achieve Your Perfect Scenario with Strategic Planning

· Strategic planning in a business is where a business defines its strategy or direction and then makes decisions or plans on how it can get there.

· Determine your perfect scenario: step away from your business for half a day and brainstorm what your perfect scenario would look like in 10-15 years.

· Do your five-year plan, and three-year plan, and determine and implement your 2023 strategic plan.

· Examples of things that may come up during brainstorming session: having your personal residence fully paid off, having a vacation home, working only two to three days per week, having a business profit of a million or 5 million or a hundred thousand dollars, having investments and or savings greater than 5 million, etc.

[04:42] Creating a Three- or Five-Year Plan and Annual Strategic Plan for Your Perfect Scenario

· Three- or five-year plan: list of action items and goals to complete in the next three or five years

· Annual strategic plan: specific action items to do this year to start chipping away at future goals

· Examples of action items: hire a social media marketing firm, grow social followers, close new sales, hire staff members, max out retirement accounts, put money into investment/savings account, hire kids and fund their Roth, set up a bookkeeping system, tax planning

[08:50] Strategic Planning, Bookkeeping, and Tax Planning

· Take some time to put together a strategic plan for 2023

· Include building out your perfect scenario, three- and five-year plans

· Check back throughout the year during regular board meetings to see progress

· Start researching and learning about tax strategies available to everyday business owners

· Get an accountability partner to ensure sticking with the plan

[12:15] Closing Segment

Final words

Key Quotes

“The ultimate goal here is to build out a roadmap. A roadmap that's going to take you or lead you to that perfect scenario.” – Mike Jesowshek

“This is your opportunity to dream, your opportunity to think of what would things look like if everything was perfect in 10 or 15 years.” – Mike Jesowshek

Resources Mentioned

Blog Posts:

· https://www.taxsavingspodcast.com/blog/how-can-i-setup-my-business-for-success-in-2023

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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: