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Ever wondered how to save on taxes with your business meal expenses?

In this episode, Mike Jesowshek discusses the ins and outs of meal expense deductions for small business owners. He explains how these deductions can turn after-tax spending into pre-tax spending and outlines the criteria for deductibility. Mike emphasizes the importance of detailed record-keeping and highlights various scenarios where meal expenses can be deducted. He also touches on the differentiation between meal and entertainment expenses and mentions strategies to maximize deductions while cautioning against excessive claims that could raise red flags with the IRS.

Discover practical tips by tuning in!

[00:00 - 03:38] Introduction and Basics of Meal Deductions

• Mike Jesowshek discusses basic IRS rules: food and beverage costs must be ordinary, necessary, and business-related to be deductible.
• Mike explains pre-tax spending versus after-tax spending.
• It is possible to convert a family dinner into a business expense by making it a board

meeting.

[03:39 - 09:08] Types of Deductible Meal Expenses

• Dining with others (clients, staff, vendors) is 50% deductible.
• Solo meals when traveling for business are also 50% deductible.
• Meals provided at company events or marketing presentations are 100% deductible.
• Company parties are 100% deductible if the majority of attendees are non-tainted employees.
• Entertainment expenses are not deductible.
• Meals associated with entertainment, like a baseball game, are 50% deductible if separated on the invoice.

[09:09 - 13:31] Detailed Record-Keeping, Strategies, and Pitfalls

• Mike shares the importance of writing details directly on receipts (who, what, where, when, why).
• He gives a warning against excessive meal expense claims to avoid IRS red flags.

[13:32 - 17:02] Recap and Additional Resources

Direct Quotes:

"Meals are a great opportunity to turn after-tax spending into pre-tax spending." - Mike Jesowshek

"Keep detailed records. Write directly on the receipt who you met with, the purpose, and snap a photo for your files." - Mike Jesowshek

"Don't get greedy. Make sure you're smart with it. The IRS allowed us to move after-tax spending into pre-tax spending." - Mike Jesowshek

"Even though you might be having lunch with someone you consider non-business related, if you're talking business, you can often tie that to a business purpose." - Mike Jesowshek

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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

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Have you ever wondered how to turn your everyday expenses into legitimate business deductions?

Mike Jesowshek discusses strategies for maximizing small business tax deductions, emphasizing the importance of both obvious and non-obvious deductions. He explains that any expense, whether ordinary or necessary for the business, qualifies as a deductible. Mike emphasizes proper documentation and legal compliance to ensure these deductions are valid. He also contrasts pre-tax and after-tax spending, showing how business owners can leverage pre-tax expenses to reduce taxable income. The episode includes practical tips on turning personal expenses into business deductions and stresses the importance of keeping separate business and personal financial accounts to avoid commingling.

Tune into this episode to uncover the strategies that can save your business thousands in taxes each year!

[00:00 - 04:54] Introduction and Basic Deduction Concepts

• Mike Jesowshek introduces the topic of maximizing tax deductions for small businesses.
• He explains basic deductible expenses like advertising and software purchases.
• He emphasizes the correct implementation and documentation to keep deductions legal.

[04:55 - 09:33] Maximizing Deductions and Real-World Applications

• Mike talks about converting personal expenses to business deductions.
• Pre-tax versus after-tax spending and its impact on taxes.
• Mike shares real-life scenarios of converting personal expenses during COVID-19.
• It is important to keep receipts and detailed documentation for all business expenses.

[09:34 - 16:45] Effective Documentation and Banking Practices

• Avoid commingling of funds and separate business accounts.
• Mike outlines strategies for documenting meals and travels as business expenses.
• Mike discusses the use of accountable plans to handle business expenses paid personally.
• He emphasizes the importance of reimbursements to ensure proper tax records and compliance.

[16:46 - 24:19] Exploring Common Deductions and Episode Wrap-Up

• Mike encourages listeners to review the IRS guidelines to understand what qualifies as a deductible expense.
• He shares strategies for integrating personal activities with business purposes to optimize tax deductions.

Direct Quotes:

"As a business owner, pre-tax spending allows you to reduce taxable income before it even reaches your pocket." - Mike Jesowshek

"Maximizing deductions isn't just about spending more; it's about spending smarter." - Mike Jesowshek

Resources Mentioned:

• Free guide on maximizing deductions available at: www.TaxSavingsPodcast.com/deductions

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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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Are you leveraging the latest tax credits to provide the best retirement plans for your employees?

Hosts Mike Jesowshek and guest Matt Ruttenberg discuss retirement plan options for businesses with employees. The conversation highlights various types of retirement plans like SEP IRAs, SIMPLE IRAs, Safe Harbor 401(k)s, and traditional 401(k)s. They explore the benefits of these plans, particularly in light of recent tax credits and laws that make setting up these plans more advantageous. The episode emphasizes the importance of understanding one's business needs and goals to choose the right plan, stressing the consultative approach to retirement planning.

Discover how simple adjustments to your retirement planning could save you thousands in taxes and benefit your entire team by tuning in!

[00:00 - 06:15] Overview of Retirement Plan Options

• Mike introduces the topic of retirement plans for businesses with employees.
• He encourages listeners to refer to previous episodes for foundational knowledge.
• Matt details various retirement plans available, including SIMPLE and SEP IRAs, Safe Harbor, and traditional 401(k) plans.

[06:15 - 14:49] Deep Dive into Plan Features and Selection

• Matt explains how businesses can select appropriate plans based on their priorities and business goals.
• They discuss the role of tax credits in offsetting the costs of starting retirement plans.

[14:49 - 23:01] Final Thoughts and Listener Q&A

• Matt and Mike address common misconceptions about the complexity and cost of setting up retirement plans.
• They conclude with advice on consulting professionals to tailor retirement plans to specific business needs.

Direct Quotes:

"The vast amount of retirement plan options available should encourage every business owner to consider what's best for their situation." - Matt Ruttenberg

"Don't be afraid to reach out for help, as the right plan can significantly impact your business's and employees' futures." - Matt Ruttenberg

Connect with Matt Ruttenberg!

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

______

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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YouTube: https://www.youtube.com/@TaxSavings

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Are you a solo entrepreneur puzzled by the myriad of retirement planning options?

Mike Jesowshek welcomes back Matt Ruttenberg to discuss retirement plan options for solo entrepreneurs without employees. They highlight various plans like IRAs, SIMPLE IRAs, SEP IRAs, and solo 401(k)s, emphasizing the importance of starting with the desired savings amount to determine the most suitable plan. The episode covers the contribution limits, the benefits of each plan type, and the financial implications of choosing one plan over another, particularly in terms of tax deductions and maximizing retirement savings.

Discover how choosing the right plan can maximize your savings and secure your financial future by tuning in!

[00:00 - 05:48] Exploring Basic Retirement Plan Options, SEP IRAs, and Solo 401(k)s

• Mike introduces the topic of retirement plans for solo entrepreneurs.
• Matt discusses simple retirement options like individual IRAs and SIMPLE IRAs, highlighting their benefits and contribution limits.
• He elaborates on the higher contribution limits of SEP IRAs and the advantages of solo 401(k)s, including their structure and potential for higher savings.

[05:48 - 15:22] Comparison of SEP IRA and Solo 401(k) Contributions and Decision-Making in Retirement Planning

• Matt and Mike share a detailed explanation of how contribution limits are calculated based on business type and income.
• They discuss the extra benefits of solo 401(k)s, such as catch-up contributions for those over 50.
• Choosing the right retirement plan based on the amount one wants to save simplifies the decision-making process.

[15:22 - 20:05] Closing and Resource Mention

Direct Quote:

"So you might have a couple hundred dollars of fees, but you are netting a substantial amount more, going into that solo than you are with the SEP IRA." - Matt Ruttenberg

Connect with Matt Ruttenberg!

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

______

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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YouTube: https://www.youtube.com/@TaxSavings

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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/

______

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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Have you ever wondered if you could hire your older child to watch your younger one and claim it as a business expense? Or are you maximizing the benefits of a Health Savings Account to its fullest potential?

In this Q&A episode of the podcast, host Mike Jesowshek answers a series of listener-submitted questions covering a wide range of topics pertinent to small business owners, such as tax deductions, business expenses, payroll management, and tax strategies. Mike provides detailed insights on various scenarios, such as employing children, maximizing HSA contributions, and the proper way to handle business travel deductions. He also discusses the benefits of using payroll software for S Corporations and outlines strategies for setting reasonable salaries within an S Corporation framework. Additionally, the episode includes practical advice on managing business deductions for vehicle expenses and hiring offshore freelancers.

[00:00 - 00:59] Introduction and Webinar Announcement

[00:53 - 04:11] Hiring Family Members and Maximizing HSA Contributions

• Mike discusses the non-deductibility of hiring children for childcare within most small business contexts.
• Health Savings Accounts (HSAs) are tax-advantaged tools, like "retirement plans on steroids."

[04:11 - 09:42] Business Purchases, Tax Implications, and Renting Personal Equipment to Your Business

• Mike breaks down the financial aspects of purchasing a business, focusing on asset depreciation and the treatment of seller financing.
• Correctly account for personal equipment used for business to ensure tax efficiency.

[09:42 - 15:31] Using Payroll Software for S Corporations and other Tax Topics

• Using payroll software to streamline payroll processes can avoid common mistakes.
• Providing comprehensive answers to specific questions helps clarify complex tax situations.

[15:31 - 23:09] Benefits of Payroll Software for S Corps and Correct Payroll Handling

• What are the repercussions of not managing payroll properly in a small business setting?
• Effective payroll management prevents penalties and ensures financial stability.

[23:09 - 25:44] Travel Deductions for Business Trips

• Mike provides guidance on how to document and justify travel expenses as ordinary and necessary for business purposes.
• Detailed documentation and understanding of IRS guidelines can make travel expenses deductible.

[25:44 - 26:49] Closing Remarks and Additional Resources

• Mike concludes with additional resources, a call for questions for future episodes, and a reminder of the upcoming webinar.

Direct Quote:

"Think of an HSA almost as a retirement plan on steroids." - 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/

IncSight Packages (Full-Service): https://incsight.net/pricing/

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

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Have you ever wondered how to structure your multiple business ventures efficiently while minimizing your tax burden?

Mike Jesowshek delves into the complexities of business structuring, particularly for individuals owning multiple businesses or in partnership. He emphasizes the utility of S Corporations in reducing self-employment taxes and the importance of establishing a parent S Corporation to streamline business operations, financial management, and tax filing. Mike advocates for separate bookkeeping for each entity, despite their consolidation under the parent S Corp, to maintain clarity in financial and legal aspects.

[00:00 - 04:20] Introduction to Business Structuring and Exploring S Corporation Complexities

• Mike Jesowshek discusses the importance of structuring for business owners with multiple ventures or partnerships.
• He introduces the concept of S Corporations and their benefits.
• Mike elaborates on the complexities and requirements of maintaining S Corporations, like payroll and tax filings.

[04:20 - 07:03] Structuring for Operational Efficiency

• The conversation shifts to operational structuring, emphasizing separate bookkeeping for legal and financial clarity.
• Mike stresses the importance of having a singular parent S Corporation owning other businesses.

[07:03 - 11:32] Tax Considerations and Partnership Structures

• What are the tax implications and structuring options for partnerships?
• Mike discusses different scenarios where S Corporations can benefit or complicate partnership arrangements.

[11:32 - 20:09] Practical Tips and Conclusion

• Mike shares his concluding thoughts on business structuring with a focus on legal consultation and tax efficiency.
• He wraps up by encouraging listeners to plan their business structure mindfully and consult professionals.

Direct Quotes:

"When we talk about S Corporations, obviously the goal is to minimize self-employment taxes, but S Corps comes with some complexities as well." - Mike Jesowshek, CPA

"We want to have one company that we're actively participating in running through with all of our income before touching us. And we want that company to be in most cases, an S corporation." - 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/

IncSight Packages (Full-Service): https://incsight.net/pricing/

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

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Are you perplexed by estimated taxes and worried about potential penalties? Discover how to navigate the U.S. tax system's pay-as-you-go approach and strategically plan your payments to stay on top of your tax obligations!

In this episode, Mike Jesowshek discusses the importance of understanding and paying estimated taxes in the U.S., emphasizing the "pay as you go" system. He explains the concept of estimated taxes, key due dates for each quarter, and the significance of making timely payments to avoid penalties and interest. Mike introduces the "safe harbor" rule, which helps taxpayers avoid penalties if they pay a certain percentage of their previous year's tax or their current year's expected tax liability.

[00:00 - 01:21] Introduction to Estimated Taxes

• Mike Jesowshek introduces the topic of estimated taxes, explaining the pay-as-you-go system and upcoming deadlines.

[01:21 - 02:45] The Mechanics of Withholding

• Mike discusses how withholding works for W-2 employees and the responsibilities of business owners for making tax payments.

[02:45 - 04:32] Year-End Reconciliation and Tax Refunds

• What is year-end tax reconciliation and what are the misconceptions about tax refunds?

[04:32 - 06:28] Estimated Tax Due Dates and Payment

• Mike clarifies the quarterly tax payment due dates and the reasoning behind them.

[06:28 - 10:50] Safe Harbor Rule and Calculating Estimated Taxes

• Mike talks about the safe harbor rule, how to calculate estimated taxes and the differences based on adjusted gross income.

[10:50 - 17:06] Actual Method and Recap

• What is the actual method for calculating estimated taxes and the importance of planning for fluctuating business income?

Direct Quotes:

"A refund doesn't mean you saved money on taxes; it's just saying you paid too much in taxes throughout the year." - Mike Jesowshek, CPA

"Estimated taxes are the way that business owners can make payments against that future tax bill as they're earning money." - 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/

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