Episode Details

Do you want to know how you can save money on taxes through smart strategies and proper filing? In this episode of the Small Business Tax Savings Podcast, Mike answers listener questions every other month in a Q&A session. He tackles some of the most common questions from small business owners.

Mike covers topics such as the Augusta Rule, “Why banks penalize small business owners?”, whether one should receive W2s when they are employed in the family business, and the best way to receive payments for his business.

Tune in now as Mike explains how you can save money on taxes through smart strategies and proper filing!

[00:25] Listener Q&As

• Today’s episode is, “Listener Q&A”
• Mike invites listeners to submit their questions for the next Q&A

[01:10] Maximizing Tax Deductions For Small Business Owners

• What is the “Augusta Rule”?
• Banks penalize small business owners who strategize well and take advantage of tax deductions/credits
• The government does not offer incentives to banks or loan providers to work with these scenarios
• Try to find a bank that is business-friendly and understands what you’re doing

[09:25] Understanding The Tax Implications Of Multiple Business In One LLC

• When filing a personal return and paying taxes, use an owner’s draw in QuickBooks
• For paying kids for work done in the business, issue them W2s for 2022 and 2023
• To protect LLC status, payments should go through the business bank account
• When paying estimated taxes for a single-member LLC or S Corp, use a personal social security number

[20:53] Closing Segment

• Mike explains how you can save money on taxes through smart strategies and proper filing!
• Final Words

Key Quotes

“Remember, with any business deduction we take, the deduction has to be ordinary and necessary... So just make sure you have the documentation to support it and that everything makes sense. Remember, we need agreements in place, rental agreements, we need a fair rental value.” – Mike Jesowshek, CPA

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

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

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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: Ask@TaxSavingsPodcast.com