How I Saved An Agency $15,000 In Taxes (In 12 Months)
How I Saved An Agency $15,000 In Taxes (In 12 Months)  
Podcast: Small Business Tax Savings Podcast
Published On: Wed Aug 28 2024
Description: Send us a textMike Jesowshek shares how he saved a small business owner over $15,000 in taxes in just 12 months. Mike breaks down the practical strategies implemented, including changing the business entity structure, maximizing home office and vehicle deductions, strategically categorizing business expenses, and more! Learn how these strategies led to over $132,000 in tax savings for Alex's business over five years. [00:00 - 03:28] Case Study Alex is a former corporate digital marketer who transitioned from a W2 employee to an entrepreneur in the healthy eating influencer spaceAlex's quick growth, generating about $100,000 profit in the first year as a sole proprietorshipDuring tax season Alex got hit with an unexpectedly large tax bill in the first yearHe realized he lacked knowledge of tax-saving strategies [03:29 - 06:18] Tax Saving Solutions ImplementedWe changed Alex’s entity type from sole proprietorship to S CorporationWe implemented home office deduction through an accountable planWe utilized a personal vehicle for business and claimed deductionsWe maximized deductions by finding business purposes for existing spendingMeals with clients or business discussionsTravel combined with business purposesOffice equipment and supplies[06:19 - 12:01] Advanced Tax Saving StrategiesSet up a board for the businessCreated opportunities for travel and meal expense deductionsImplemented the 14-day home rental rule for board meetingsEstablished retirement savings with a solo 401(k)Set up a Health Savings Account (HSA)Properly deducted self-employed health insuranceImplemented estimated tax payments to avoid penalties[12:02 - 19:47] Results and  Key TakeawaysThese strategies saved Alex over $15,000 in taxes in the first yearOver five years, Alex saved more than $132,000 in taxesThese strategies are available to most small business ownersProper implementation is crucial for realizing tax savingsDirect Quotes "Implementation, understanding strategy is one thing you do not see any tax savings until you implement that strategy. And I also want to put in the effort that says implementation is one thing. The correct implementation is the key." – Mike Jesowshek, CPA______Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastJoin 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.comFacebook Group: https://www.facebook.com/groups/taxsavings/YouTube: https://www.youtube.com