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!

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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/

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

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Are you dreading tax season? Join us on this episode of the Tax Savings Podcast as we discuss how to best prepare for tax season in 2023. Mike will cover a variety of topics, including action items such as completing bookkeeping, gathering receipts, bank statements, loan documents, asset purchases or sales, and completing an accountable plan. Mike will also provide helpful advice on due dates related to the 2022 tax year and tips on how to best prepare for filing. Plus, he is going to discuss how to create a system in place for tax documents that makes the upcoming tax season easier and stress free. Don’t miss out on this valuable information!

[00:00] What Your Accountant Needs and Tips to Make it Stress-Free

· Be proactive and get your documents and financials in order at the beginning of the year.

· Complete your bookkeeping as soon as possible and wrap up the previous year.

· Gather all necessary documents, including receipts, bank statements, loan documents, asset purchases/sales, and accountable documents.

· Consider using digital tools to organize and store your documents

[04:02] Gather Documents, Complete Your Accountable Plan, and Send to Your Accountant

· Separate interest and principle when doing bookkeeping for loans.

· Let your accountant know if you made any asset purchases or sold any assets that are already on your books.

· Complete your accountable plan and add the activity to your books.

· Send income statement (profit & loss) and balance sheet to accountant

· Gather all tax documents and put them in one digital file before sending to accountant

[07:44] Gathering Tax-Related Documents for Tax Season

· Gather documents such as last year's tax return, payroll documents, 1099s, 1098s, K-1s, health insurance forms, 1098-E for student loan interest and 1098-T for tuition

· Collect information on real estate taxes, medical expenses, charitable contributions, childcare expenses and estimated taxes

· As a business owner, keep track of estimated tax payments.

· Create a spreadsheet with all of the collected information

[11:21] 2022 Tax Year Due Dates and Tips for Business Owners

· Quarter 4 estimated tax payments are due on January 16th.

· W-2 and 1099 forms are due to recipients by January 31st.

· S corporation, partnership, and multi-member LLC tax returns are due on March 15th or can be extended by that date.

· Personal, single member LLC, and C corporation tax returns are due on April 18th or can be extended by that date. April 18th is also the deadline for IRA and HSA contributions for 2022.

· To minimize stress, it is helpful to have a system in place for organizing tax documents as they come in throughout the year.

[16:00] Closing Segment

• Final words

Key Quotes

“Take the time now to gather all of your tax documents and have a system in place for organizing them. This will make tax season a breeze and allow you to focus more on your business”. – Mike Jesowshek

Resources Mentioned

Blog Posts:

· https://www.taxsavingspodcast.com/blog/how-do-i-reimburse-

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This episode is different from our normal. We hosted a webinar this week that I believe provides great information for our audience so I wanted to work it into an episode. We touch on: Tax strategies that save small businesses thousands each and every year, the top 3 tips that will bulletproof your business from an IRS audit, and how to develop a bookkeeping system to facilitate financial success.

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Podcast Host: Mike Jesowshek CPA, from JETRO and Associates

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Podcast Website: www.TaxSavingsPodcast.com

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Doing your own books can take up hours of your time, not to mention the hours you spend wondering if you did it right. But what do you do if you can’t afford to hire a professional? How about free training from the pros to help you do your own books in less time, with less stress and better results.

Learn More or Join Now: www.JETROtax.co/challenge

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To find out more on this topic and many others visit our website at www.JETROTax.com.You can also give us a call at 844-327-9272 or send your questions to us at [email protected].

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We specialize in serving only small business owners helping them with bookkeeping, taxes, and payroll. When it comes to taxes we are not just a prepare and file firm we take it a step further and concentrate on tax savings throughout the year. We have been taking care of hundreds business owners across the country since the firm began. To keep things simple we have created pre-built packages and pricing so there are never any surprises.

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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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Hiring one's children is an often overlooked but incredibly beneficial strategy. With IRS regulations allowing for business deductions for wages paid to those under 18, this can be an effective pre-tax spending and money-saving opportunity for parents.

In this episode, we'll discuss the importance of having proper documentation in place when utilizing this strategy, as well as creative ways to use your child's skills in your business while teaching them valuable lessons in financial management and responsibility. We'll provide resources to help you create documents and templates valid when dealing with the IRS, including a job description, employment agreement, worksheet tracking task/date/hours worked, payment proof, and W-2. Plus, we'll explore how hiring your children can move after-tax spending into pre-tax spending - so don't miss out on this super informative episode!

[00:27] Hiring Your Kids: Get a Business Deduction and Potentially Pay No Tax

• Hiring your kids is allowed by the IRS and provides benefits that don't apply to other people
• You get a business deduction, and your child potentially pays no income tax on that income
• You can pay your child out of a sole proprietorship without having to withhold for social security, Medicare, or federal unemployment taxes
• Your child can claim the standard deduction of 13,850, and any income over that will be taxed at the lowest bracket

[04:23] Things You Need to Know Before Hiring Your Child

• The child must be age seven or older
• The child must be paid a reasonable rate for the type of work they are doing in your business
• Track time, tasks, and duties
• Pay to an account in the child's name
• Have a job description, employment agreement, and worksheet
• Mike shares the other benefits of hiring your child

[10:32] S Corporation and Non-Direct Children

• If you operate as an S Corporation, you need to withhold for social security, Medicare, and federal unemployment
• You can also hire non-child family members but would need to withhold for social security, Medicare, etc.

The Time Is NOW To Start Paying Less In Taxes. Join Our Tax Minimization Program (with Stress-Free Bookkeeping Training)! Join Our Tax Minimization Program Today!

Key Quotes

"I've never found a business where their child couldn't do something for their business. And that's as business owners; we need to start thinking, what can our child be doing for our business?" – Mike Jesowshek, CPA

"There's a lot of extra benefits to hiring your children over and above just the tax benefits. Your child's starting to understand working for a living and getting paid, and now they can go buy their things and they start to learn money management." – 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: [email protected]