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What happens when you take a real small business owner, put them in the hot seat, and break down their tax strategy live? That’s what we’re doing in this episode.

Eric runs a successful appraisal business, pays himself through an S-Corp, and last year wrote a $50,000 check to the IRS. Did he really have to? Mike digs into Eric’s setup and reveals how simple shifts could slash his tax bill. From adjusting his salary to using the Augusta Rule, hiring kids, and planning for real estate, you’ll see how the right strategy can cut thousands off your tax bill.

👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit

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

Here's What We Discussed:
(01:21) Income Breakdown
$200K profit in appraisal business, break-even martial arts school, plus wife’s part-time job.

(03:09) Current S Corp Salary Setup
Eric takes $120K-$140K salary. Mike shows how lowering it could save $8K-$9K annually.

(06:25) Why Two S Corps Cost Too Much
Running payroll twice and filing two returns is unnecessary. A smarter setup is to use one holding S Corp that owns your other businesses (but only for active businesses, not passive income like rentals.)

(09:07) Retirement Planning Made Simple
How Eric can prioritize HSA, IRA, and SIMPLE contributions to maximize tax benefits.

(10:32) How to Determine a Reasonable Salary as an S Corp
Start with 30-50% of profit, then back it up by tracking how many hours are spent on core tasks. Use labor statistics to assign hourly rates (this builds audit protection and ensures you’re not overpaying in payroll taxes).

(17:42) Maximizing Deductions You Already Have
Use an accountable plan to capture deductions you might miss. Home office, mileage, meals, and travel can all qualify when tied to business.

(21:00) The Power of a Board + Augusta Rule
Set up a board, hold meetings at home, and rent your house tax-free.

(26:40) Hiring Kids the Right Way
When to use W-2 vs. 1099 and how to turn family support into deductible expenses.

(36:15) Real Estate and REPS Strategy
How cost segregation and bonus depreciation could create six-figure deductions.

(41:58) Core vs. Advanced Tax Strategies
What every business owner should implement now and what comes next as income grows.

👉 U.S. Bureau of Labor Statistics (BLS) – https://www.bls.gov/oes


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

Most business owners are driving right past thousands in tax savings without realizing it. In 2025, the IRS raised the standard mileage rate to 70 cents per mile, but that’s only the beginning.

In this episode, Mike breaks down exactly how to structure your auto deductions, avoid costly mistakes, and choose between the mileage method and actual expenses.

👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit

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

Chapters

(00:00) You’re Missing Out on Auto Deductions
Most business owners overlook vehicle write-offs that could save thousands.

(01:00) What’s New for 2025
IRS mileage rate jumps to $0.70 per mile, plus bonus depreciation returns to 100%.

(03:15) Mileage Method vs. Actual Method
How each deduction works and the rules for switching methods. Low-cost, high-mileage cars lean mileage. High-cost, heavy vehicles lean actual.

(08:10) The 6,000-Pound Vehicle Rule
How GVWR impacts deductions and when Section 179 + bonus depreciation apply.

(09:50) Recordkeeping Requirements
Mileage logs, receipts, and documentation you’ll need if the IRS asks.

(13:00) What Counts as Business Miles (and What Doesn’t)
Meetings, errands, and client visits qualify. Commuting does not.

(16:12) Real-Life Example: $7,000 vs. $10,000 Deduction
Side-by-side comparison of mileage vs. actual expenses.

(18:32) How to Claim the Deduction by Entity
Schedule C for sole props vs. accountable plans for S-Corp owners.

(19:51) Action Steps to Maximize 2025 Auto Deductions
Pick your method, track carefully, and understand depreciation rules.

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

Do you have a home office? The desk you’re sitting at could save you up to $1,500 a year in taxes.

Many business owners skip this deduction because they think they don’t qualify or fear an IRS audit. The truth is, most do qualify. One client of mine saved $1,100 in just 30 minutes by setting it up.

In this episode, Mike Jesowshek, CPA, explains who qualifies, the two ways to calculate it, how to document properly, and the mistakes that cause business owners to miss out. You’ll also learn how the home office deduction can unlock other tax savings like business mileage.

👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit

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

Chapters

(00:00) Why Most Business Owners Skip the Home Office Deduction
The $1,500 opportunity that too many entrepreneurs ignore

(01:00) Real Client Example: $1,100 Saved in 30 Minutes
How a quick calculation turned wasted expenses into major tax savings.

(03:00) Who Qualifies? The 2 Rules You Must Meet
Regular and exclusive use + principal place of business (with the administrative loophole explained).

(09:00) Two Ways to Calculate: Simplified vs. Actual
$5 per square foot up to 300 sq ft vs. percentage of actual costs: When to use each method.

(13:00) Where to Take the Deduction (Sole Prop vs. S-Corp)
Schedule C, Form 8829, and how to handle it with an S-Corp accountable plan

(14:30) Common Mistakes That Kill Your Deduction
From mixing personal use to failing to document properly… What to avoid

(17:30) In Summary
Why this deduction can be worth $1,500+ every year, and how it also unlocks mileage deductions

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.