Episode Details

Jake Wedig is the Director of Tax at Fondo, where he helps startups navigate complex tax legislation and maximize their tax benefits. With deep expertise in startup tax strategy, Jake specializes in R&D tax credits, Section 174 compliance, and helping growing companies optimize their tax positions while managing cash flow challenges.

In this conversation, Jake breaks down the recent changes in tax legislation that every startup founder needs to know about, particularly the game-changing provisions in the One Big Beautiful Bill and how startups can leverage R&D tax credits to get substantial cash back on their development investments.

We explore the challenges that Section 174 has created for startups and dive into practical strategies for navigating these changes, including when amending tax returns makes sense and how to leverage bonus depreciation and Section 179 deductions. Jake also explains the powerful long-term benefits of Qualified Small Business Stock (QSBS) for founder wealth optimization.

Key topics covered:

• How the One Big Beautiful Bill creates new tax optimization opportunities for startups
• Maximizing R&D tax credits for substantial cash returns on development investments
• Navigating Section 174's impact on R&D expense deductions and cash flow management
• Strategic use of amended returns to recover from unexpected tax positions
• Leveraging bonus depreciation and Section 179 for immediate equipment deduction benefits
• Understanding QSBS benefits and the five-year holding period requirements
• The importance of proactive tax planning partnerships between startups and advisors
• Staying ahead of evolving tax legislation to capture emerging opportunities
• And much more

Brought to you by:

• Fondo — Automate your accounting and unlock up to $500k from the IRS: https://tryfondo.com
  
  

Where to find Jake Wedig

• LinkedIn: https://www.linkedin.com/in/jacob-wedig
  
  

Where to Find David Phillips

• X: https://x.com/davj
• LinkedIn: https://www.linkedin.com/in/davjphillips/
  
  

In This Episode, We Cover

• (01:42) Understanding the New Tax Bill
• (03:31) R&D Tax Credits and Their Importance
• (07:51) Impact of Section 174 on Startups
• (13:05) Amending Returns and Cash Flow Considerations
• (16:38) The Role of Tax Advisors for Startups
• (30:55) Bonus Depreciation and Section 179
• (35:23) Qualified Small Business Stock (QSBS) Benefits