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Taking money out of your business isn’t always tax-free. If you’re not tracking your basis, you could get hit with a surprise capital gains tax, even without selling anything. Let's break down what basis means, how it works differently for Partnerships and S Corps, and why overlooking it could cost you thousands.

🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/

Chapters:

(01:06) What Is Basis and Why It Matters
Your basis determines how much you can take out of your business tax-free and how much loss you can deduct.

(01:44) Client Story: The $7K Surprise Tax Bill
A business owner thought their S Corp distributions were tax-free—until a capital gains bill showed up.

(02:23) Calculating Basis: Partnership vs. S Corp
Mike walks through the formula for both. Spoiler: only partnerships include debt in basis.

(06:20) Real-Life Example: Same Business, Different Outcome
Two identical businesses. One pays capital gains, the other doesn’t. The difference? Entity type.

(07:44) Why Basis Gets Miscalculated
Loans, poor bookkeeping, and switching accountants are common culprits behind basis errors.

(09:25) Planning Tips to Avoid Basis Mistakes
Track your basis annually, keep clean books, adjust distributions, or structure shareholder loans when needed.

Podcast Host:

Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com

🚀 Visit: https://www.TaxSavingsPodcast.com

🚀 Check Out TaxElm: https://taxelm.com/

🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/

🚀 YouTube: www.TaxSavingsTV.com

👋🏼 GET IN TOUCH
You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏

🙏 LEAVE A REVIEW
If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐

🎙 ABOUT THE PODCAST
The Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help entrepreneurs legally slash their tax bills. Hosted by Mike Jesowshek, CPA, this show breaks down complex tax topics into clear, no-fluff insights so you can keep more of your hard-earned money.

Send us a text

Mixing active and passive income in one entity could be costing you thousands. In this episode, we break down why separating your income streams is essential. You’ll learn how to structure your business the right way using S Corps, LLCs, holding companies, and even C Corps to unlock advanced tax strategies. From hiring your kids to slashing self-employment tax, this is the blueprint smart business owners use to keep more of what they earn.

🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/

Chapters:

(01:04) Active vs. Passive Income (Why separation matters)
Why it's important to keep your active business and passive investments in separate entities.

(04:06) Choosing the Right Entity Type
Mike explains when to use sole proprietorships, LLCs, S corps, and C corps, depending on your needs.

(10:55) The S Corp Holding Company Setup
How to simplify taxes and planning by running your active businesses through one S-Corp holding company.

(14:36) Special Structures for Tax Strategies
When to use a sole proprietorship or C corp for things like hiring kids or unlocking health reimbursements.

(15:16) Real-Life Use Cases and Examples
Mike walks through examples for coaches, rental properties, and software businesses using strategic entities.

(21:16) When to Create a New Entity
Key questions to ask when deciding whether to form a new LLC, DBA, or use an existing structure.

Podcast Host:

Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com

🚀 Visit: https://www.TaxSavingsPodcast.com

🚀 Check Out TaxElm: https://taxelm.com/

🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/

🚀 YouTube: www.TaxSavingsTV.com

👋🏼 GET IN TOUCH
You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏

🙏 LEAVE A REVIEW
If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐

🎙 ABOUT THE PODCAST
The Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help entrepreneurs legally slash their tax bills. Hosted by Mike Jesowshek, CPA, this show breaks down complex tax topics into clear, no-fluff insights so you can keep more of your hard-earned money.

Send us a text

Trump’s Big Beautiful Bill just became law. What’s actually in it? On July 4th, the biggest tax overhaul since 2017 was signed, and it’s packed with big wins for business owners.

100% bonus depreciation, a permanent 20% QBI deduction, tax-free tips and overtime, and brand-new deductions most people haven’t even heard of. Let’s break down the Big Beautiful Bill line by line so you know exactly what’s changing, what’s temporary, and how to use it to slash your tax bill before the window closes.

🚀Ready to stop overpaying the IRS? Sign up for my free webinar on July 15th! Click here or visit: https://www.taxsavingspodcast.com/webinar

🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/

Chapters:

(00:00) Massive Tax Update Just Signed Into Law
Why the Big Beautiful Bill matters for business owners.

(01:00) Personal Tax Cuts You Need to Know

Permanent tax bracket changes, higher standard deduction, and updated child tax credit.

(05:19) SALT Cap Raised to $40K

State and local tax deduction cap temporarily increased for earners under $500K.

(09:48) Trump Accounts & Charitable Giving Changes
New tax-deferred savings for kids and updated rules for non-itemizer donations.

(11:50) Business Deductions: QBI, Bonus Depreciation, Section 179

Key write-offs expanded or made permanent for business owners and investors.

(15:46) Estate Tax, Opportunity Zones, and Green Credit Cuts

Higher estate exemptions, permanent Opportunity Zone rules, and energy credit rollbacks.

Podcast Host:

Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com

🚀 Visit: https://www.TaxSavingsPodcast.com

🚀 Check Out TaxElm: https://taxelm.com/

🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/

🚀 YouTube: www.TaxSavingsTV.com

👋🏼 GET IN TOUCH
You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏

🙏 LEAVE A REVIEW
If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐

🎙 ABOUT THE PODCAST
The Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help entrepreneurs legally slash their tax bills. Hosted by Mike Jesowshek, CPA, this show breaks down complex tax topics into clear, no-fluff insights so you can keep more of your hard-earned money.