297 episodes

The Small Business Tax Savings Podcast is designed specifically for small business owners. We focus on tax savings and ways to have a financially sound back bone to your small business. Our goal is to have you paying the least amount in taxes as legally possible.Hosted by by Mike Jesowshek, CPA, this is a quick hitting podcast aimed to get you important information without all the fluff. You can find episodes, blog posts, information on our software TaxElm and more on our website: www.TaxSavingsPodcast.com

Small Business Tax Savings Podcast Mike Jesowshek, CPA

    • Business
    • 4.8 • 217 Ratings

The Small Business Tax Savings Podcast is designed specifically for small business owners. We focus on tax savings and ways to have a financially sound back bone to your small business. Our goal is to have you paying the least amount in taxes as legally possible.Hosted by by Mike Jesowshek, CPA, this is a quick hitting podcast aimed to get you important information without all the fluff. You can find episodes, blog posts, information on our software TaxElm and more on our website: www.TaxSavingsPodcast.com

    Unlocking Tax Deferral: Leveraging Opportunity Zones & Mastering 1031 Exchange Property Identification

    Unlocking Tax Deferral: Leveraging Opportunity Zones & Mastering 1031 Exchange Property Identification

    Are you maximizing the potential of your real estate investments through 1031 exchanges and Opportunity Zones?


    In this podcast, Mike Jesowshek and guest Michael Scherer delve into the intricacies of 1031 exchanges, focusing on various replacement property options, including Delaware Statutory Trusts (DSTs) and Qualified Opportunity Zones. They discuss the advantages of passive investment through DSTs, the strategic importance of planning and consulting with tax advisors, and the potential tax deferral benefits of investing in Opportunity Zones. The conversation emphasizes the need for investors to align their investment choices with their financial goals and the importance of thorough planning.


    [00:00 - 04:37] Replacement Property Options and Delaware Statutory Trusts (DSTs) in 1031 Exchanges
    Mike Jesowshek introduces the topic and welcomes back expert Michael Scherer to discuss 1031 exchange replacement properties and Opportunity Zones.Michael explains the concept of Delaware Statutory Trusts as a passive investment option for 1031 exchanges.

    [04:38 - 06:17] Direct Real Estate Investment vs. Passive DST Investment
    Michael compares the differences between active real estate investments and passive DST investments.What are the investor involvement and management responsibilities in different types of investments?

    [06:18 - 12:59] Strategies for Maximizing Tax Deferral and Qualified Opportunity Zones as an Investment Avenue
    Exploring methods for achieving full tax deferral by combining different investment strategies, like DSTs and direct property purchases.Michael highlights the Importance of strategic planning and advisory collaboration.

    [12:59 - 19:06] Navigating the Complexity of 1031 Exchanges and Investment Options
    How to approach 1031 exchanges, including the importance of selecting the right replacement properties?Michael explains the concept of Qualified Opportunity Zones, their benefits, and the tax implications involved.Opportunity Zones can serve as a fallback for failed 1031 exchanges or as a strategic choice for deferring taxes.

    [19:07 - 22:57] The Importance of Planning and Expert Advice
    Michael emphasizes the value of expert advice and the need for early planning in the investment process.


    Direct Quotes:


    "Understanding the investor's goals and objectives and working with their tax advisor is critical." - Michael Scherer


    "It all comes down to planning and understanding what your objectives are." - Michael Scherer



    Connect with Michael!
    LinkedIn: https://www.linkedin.com/in/michael-scherer-caia-8147504/ 
    Email: levi.smith@rcxcapitalgroup.com 


    ______


    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
    -------
    Podcast Website: https://www.TaxSavingsPodcast.com
    Facebook Group: https://www.facebook.com/groups/taxsavings/
    YouTube: https://www.youtube.com/@TaxSavings 

    • 25 min
    1031 Exchange Mastery: Skyrocket Your Real Estate Profits with Tax-Deferred Strategies

    1031 Exchange Mastery: Skyrocket Your Real Estate Profits with Tax-Deferred Strategies

    Are you maximizing your real estate investment potential through tax-deferred strategies? 


    Mike Jesowshek and Michael Scherer delve into the intricacies of 1031 exchanges. They explain its purpose, benefits, and the critical role of proper planning and advice from tax advisors. They emphasize the necessity of involving a qualified intermediary and the potential financial advantages, including tax deferral and strategic reinvestment, to maximize wealth building in real estate investment.


    [00:00 - 04:52] 1031 Exchanges and its Planning and Prerequisites
    Mike Jesowshek introduces the topic and guest Michael Scherer from RCX Capital Group.They discuss the significance of 1031 exchanges in real estate tax strategy.Key aspects of initiating a 1031 exchange including the role of tax advisors and ownership structure, are discussed.

    [04:53 -12:22] 1031 Exchange Process, Timelines, and Exploring Replacement Property Options
    Michael explains the strict timelines and procedural steps involved in a 1031 exchange and the importance of investing in like-kind properties for tax deferral. He explores like-kind exchange requirements and potential replacement properties.

    [12:22 - 16:22] Liquidity and Investment Goals in 1031 Exchanges
    How does the liquidity aspect of investments affect 1031 exchange decisions?Investment goals and timelines should align with 1031 exchange strategies.

    [16:22 - 20:04] Final Steps and the Role of RCX Capital Group in 1031 Exchange
    Michael gives an overview of the final steps in the 1031 exchange process, focusing on replacement property identification and closing within set deadlines.He shares the importance of understanding and planning for the financial and legal intricacies of the exchange process.

    [20:05 - 24:23] Common Mistakes and Wrap-Up
    Michael outlines common mistakes in 1031 exchanges, emphasizing the need for early planning and professional guidance.Final thoughts on the importance of understanding 1031 exchanges as part of a comprehensive real estate investment strategy.


    Direct Quotes:


    "1031 exchange is an exceptional tool for wealth building, but something that you need to plan around." - Michael Scherer


    "Proper planning is essential. Talk through your options, understand your goals and objectives." - Michael Scherer


    "One of the most amazing wealth-building tools is section 1031." - Michael Scherer



    Connect with Michael!
    LinkedIn: https://www.linkedin.com/in/michael-scherer-caia-8147504/ 
    Email: levi.smith@rcxcapitalgroup.com 


    ______


    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


    -------


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


    Facebook Group: https://www.facebook.com/groups/taxsavings/


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

    • 24 min
    Maximize Your Depreciation Deductions: The Power of Cost Segregation Studies Explained

    Maximize Your Depreciation Deductions: The Power of Cost Segregation Studies Explained

    Ever wondered how you could significantly reduce your taxable income from real estate investments in just one year?


    In this episode, Mike Jesowshek introduces Gabriel Florentino from Engineered Tax Services to discuss cost segregation studies, a tax strategy for real estate investors aiming to accelerate depreciation deductions. Gabriel explains the concept and benefits of cost segregation, emphasizing its significant impact on reducing taxable income by identifying and reclassifying property components to shorter depreciable lives. The discussion also covers the importance of understanding accounting terms, the difference between cost segregation and traditional depreciation methods, and the added advantage of bonus depreciation introduced in 2017, which allows for even greater tax savings in the early years of property ownership.


    [00:00 - 08:37] Cost Segregation Studies
    Mike introduces Gabriel Florentino to discuss how cost segregation can be a key tax planning strategy for real estate investments.Cost segregation allows for accelerated depreciation, offering significant tax benefits.Gabriel explains cost segregation as a method to write off 25-30% of a real estate asset's purchase price in the first year.
    [08:38 - 14:36] The Impact of Bonus Depreciation
    Bonus depreciation, starting in 2017, boosts the benefits of cost segregation by allowing immediate depreciation of certain assets.Gabriel highlights the significant tax savings achievable, even as bonus depreciation percentages change over time.

    [14:37 - 19:52] Practical Examples and Cost Study Analysis
    Gabriel provides examples demonstrating the financial benefits of cost segregation and addresses the costs associated with conducting a study.Insights into the factors affecting the cost of a cost segregation study, including property type and location.

    [19:53 - 22:08] Conclusion and Final Thoughts
    Emphasis on the value of cost segregation for both active and passive real estate investors.Gabriel mentions the complimentary benefit analysis offered to evaluate the potential benefits of conducting a cost segregation study.


    Direct Quotes:


    "Even if it's sunsetting, there is still a huge benefit of doing a cost seg study on a property." - Gabriel Florentino


    "Cost segregation study is still a strong tool because you're getting the real value of depreciation for a lot of components inside a property." - Gabriel Florentino



    Connect with Gabriel!
    Email: gflorentino@engineeredtaxservices.com 
    Website: https://engineeredtaxservices.com 


    ______


    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
    -------


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


    Facebook Group: https://www.facebook.com/groups/taxsavings/


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

    • 22 min
    2024 Real Estate Tax Mastery: Unlocking Deductions & Strategies for Property Owners

    2024 Real Estate Tax Mastery: Unlocking Deductions & Strategies for Property Owners

    Curious about how real estate can help you grow your wealth and save on taxes?


    In this episode, Mike Jesowshek discusses how real estate can serve as a tool for both wealth-building and tax savings. He emphasizes the concept of depreciation, whereby the cost of a rental property can be deducted over time, and explains how this, along with other operating expenses, can offset rental income. He also delves into strategies for utilizing passive losses to offset ordinary income, such as qualifying as an active real estate investor or a real estate professional. Additionally, he touches on the "short-term rental loophole" and the importance of considering exit strategies when selling real estate investments.


    [00:00 - 05:21] Introduction and Overview of Real Estate Tax Planning
    Real estate serves as a powerful tool for both wealth-building and tax savings.Depreciation allows the gradual deduction of the purchase price of a rental property over time.Operating expenses, including utilities and real estate taxes, can also offset rental income.An active real estate investor status allows for a maximum deduction of $25,000 to offset ordinary income.

    [04:00 - 13:41] Utilizing Passive Losses and Short-Term Rental Loophole
    Passive losses from rental properties cannot directly offset ordinary income but can be carried forward.The short-term rental loophole allows losses from short-term rentals to offset ordinary income under certain conditions.

    [13:41 - 17:09] Considerations for Business Owners in Real Estate
    Business income in real estate is considered active income and requires different tax strategies.An S Corporation can be beneficial for business owners earning over a certain threshold.

    [17:09 - 25:51] Exit Strategies and Conclusion
    Exiting real estate investments may trigger taxes, but strategies like 1031 exchanges can defer tax liability.


    Quote:


    "Don't get into real estate for tax savings. Get into real estate to grow your wealth and then experience the benefit of tax savings that comes with real estate as that cherry on top." - Mike Jesowshek, CPA


    ______


    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


    -------


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


    Facebook Group: https://www.facebook.com/groups/taxsavings/


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

    • 25 min
    Deadlines Approaching: Mastering Tax Extensions and Payment Options

    Deadlines Approaching: Mastering Tax Extensions and Payment Options

    Are you worried about filing your tax return on time or paying your tax bill?


    In this episode, Mike Jesowshek discusses tax extensions and strategies for paying tax bills, addressing common misconceptions and providing practical advice. He clarifies that filing an extension does not increase audit risk and emphasizes the importance of timely filing and payment. Mike outlines options for those who can and cannot afford their tax bills, including installment agreements and offers in compromise. Throughout the discussion, he stresses the significance of proactive tax planning to avoid financial strain in the future.


    [00:00 - 05:21] Understanding Tax Extensions and Their Importance
    Filing an extension doesn't increase audit risk, can lower chances of audit.The reasons for filing an extension include waiting on documents or incomplete bookkeeping.Extensions extend time to file, not time to pay; taxes are still due on original deadlines.Failure to file penalties is more severe than failure to pay penalties.Make estimated payments with extensions to avoid penalties and interest.

    [00:05:33 - 00:18:12] Strategies for Paying Tax Bills
    For those who can afford tax bills, options include automatic withdrawal, online payments, or credit/debit card payments.For those who can't afford tax bills, filing returns is crucial; failure to file penalties are harsher.The options for payment include borrowing funds, short-term payment plans, or offers in compromise.Installment agreements with the IRS require timely payments to avoid complications.Proactive tax planning and estimated tax payments can prevent future financial strain.

    Direct Quotes:


    "Filing an extension is simply an extended time to file your tax return. The taxes are still due on that original due date." - Mike Jesowshek


    "Extensions extend time to file, not time to pay." - Mike Jesowshek



    Resources Mentioned:
    IRS Direct Pay: https://www.irs.gov/payments/direct-pay 

    ______


    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
    -------


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


    Facebook Group: https://www.facebook.com/groups/taxsavings/


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

    • 18 min
    Foreign Income Mastery for Entrepreneurs: Your Ultimate Guide

    Foreign Income Mastery for Entrepreneurs: Your Ultimate Guide

    Ever wondered if your global business ventures could be affecting your U.S. taxes more than you realize? 


    In the podcast episode, Mike Jesowshek delves into the intricacies of foreign income for small business owners, covering essential aspects such as reporting requirements, types of foreign income, tax treaties, exemptions, the foreign earned income exclusion, the foreign tax credit, and compliance with reporting obligations. He emphasizes the importance of U.S. citizens and residents reporting worldwide income on their U.S. tax returns, regardless of where the income is earned. Mike also discusses strategies to mitigate double taxation, such as utilizing tax treaties and claiming foreign tax credits or income exclusions, while underscoring the critical nature of maintaining accurate records and understanding compliance requirements to ensure transparency and adherence to tax laws.


    [00:00 - 05:00] Introduction to Foreign Income for Entrepreneurs
    Mike Jesowshek introduces the topic of foreign income reporting for small business owners.Discussion on the requirement for U.S. citizens and residents to report worldwide income.

    [05:00 - 10:00] Tax Treaties, Exemptions, and Foreign Earned Income Exclusion
    Explanation of tax treaties and exemptions to avoid double taxation.Details on the foreign earned income exclusion, including eligibility criteria.

    [10:00 - 15:18] Compliance and Reporting Requirements
    Overview of the compliance and reporting requirements for U.S. taxpayers with foreign income or assets.Explanation of FBAR reporting requirements for individuals with foreign bank accounts or financial interests.


    Quote:


    "There might be a credit, there might be some exclusion of it, there might be some exemptions, but the IRS wants to know about it." - Mike Jesowshek, CPA


    ______


    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
    -------


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


    Facebook Group: https://www.facebook.com/groups/taxsavings/


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

    • 15 min

Customer Reviews

4.8 out of 5
217 Ratings

217 Ratings

Josiejing ,

Helpful, interesting, and informative podcast!

Mike makes taxes fun and interesting. We enjoy listening to it in the car.

It’s helped us form tax strategies and helps us think about how we can lower our taxes legally.

Thanks Mike!

WildWillow5 ,

So informative!

I started a private practice business last year with basically no business knowledge, and this podcast has taught me everything I know about small business taxes and finances. I’ve have tried to find information from various sources and Mike always has the best way of breaking things down in an understandable way while still giving incredible detail and knowledge. The episodes are short and information packed and I’m always taking notes when I’m listening. I’ve recommended this podcast to everyone I know that has some kind of business. Thank you so much for sharing such a valuable resource!

AskErnieV ,

Excellent!

You’ve accomplished what most CPAs cannot… Simply explain taxes!

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