Sept. 29, 2025

Business & Individual Tax Planning & Updates

Business & Individual Tax Planning & Updates
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Season 3

TaxTalk4U.com Trucking Business & Individual Tax Planning & Updates, how tax planning effects your business. How to minimize taxes for business. Getting all your deductions. IRA, 401k, SEP retirement plans. Health Savings Plans (HSA), Medical reimbursement plans. IRS. Truck to Success for Truckers. How taxes work for independent owner-operators. Truck Driver Per diem OOIDA Truck to Success Cost per mile. Insurance, Authority, Equipment Financing, Business Plans Permits and Licensing.

Tax Talk 4 U is broadcast live Mondays at 10AM ET and Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Tax Talk 4 U is viewed on Talk 4 TV (www.talk4tv.com).

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WEBVTT

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The topics and opinions express in the following show are

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solely those of the hosts and their guests and not

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those of W FOURCY Radio. It's employees are affiliates. We

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make no recommendations or endorsements for radio show programs, services,

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or products mentioned on air or on our web. No

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liability explicitor implied shall be extended to W FOURCY Radio

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or its employees are affiliates. Any questions or comments should

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be directed to those show hosts. Thank you for choosing

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W FOURCY Radio.

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Barry G. Fouler EA brings you tax talk for you

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right here on W four CY Radio and Talk for TV.

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As an enrolled agent and a national leader in tax

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resolution as well as Trucker bookkeeping and tax planning. With

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over thirty years of experience, Barry will break down taxes, bookkeeping,

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tax planning, and tax relief for individuals and businesses just

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like you. So let's have some tax talk for you

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with your hosts. Barry G.

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Learned, Hey, welcome in, good morning. It's a great Monday morning,

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and it's great to be here talking taxes, bookkeeping, financial

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tax planning, everything that you need, not just personally for

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your personal life, and your personal taxes, but also business

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and business taxes and things you can do to save money.

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And today, you know, we're talking about tax planning. You know,

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people go, well, why why do we do tax planning?

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Tax planning helps you save money. And you know, if

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you go back to you know, we kind of talked

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the other week about the federal tax code and that

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you know, federal tax code started in nineteen thirteen, and

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today that tax code is one hundred and eighty seven

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times longer than it was, you know, more than a

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century ago. And you know, you start dealing with things

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like that, you start dealing with tax code that is

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there to you to use as your advantage, your tool.

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I mean, you know, you think about it. Tax code

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is six eight hundred and seventy one pages long, and

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then you add to that all the official guidance at

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the IRS and the US Department of Treasury puts on you.

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And now it's over seventy five thousand pages and extremely complicated.

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Now do you think in those seventy five thousand pages

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there isn't ways to lower your taxes, There isn't ways

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to save money on your taxes. You know, the one

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thing that I would tell you is go read it.

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If you want to know everything yourself, go read it.

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It's going to take you roughly fourteen weeks to read

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that code. And that's saying you can stay awake while

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you're reading it and then understand what you're reading as well.

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And that's why having a good tax person is invaluable

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to you, to your business, to developing the strategies. It's

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going to save you money.

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Now.

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You know, I talk about taxes and bookkeeping at at

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many programs around the country, and it's particularly I do

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this great event coming up later this month. It's October

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twenty first through the twenty third. It's in Blue Springs, Missouri.

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It's called Truck to Success. So you know, if you're

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a trucker, maybe you're a W two truck and you're

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looking at to come out to become an owner operator.

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Maybe you're owner operator thinking, hey, I don't want to

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be leased on anymore. I want my own authority and

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I want to do things. A Truck to Success is

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the place to be.

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Now.

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I'm going to talk a little bit more in later sections.

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So if you do know a trucker on W two

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driver owner operator that's looking to do those things. Hey,

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tell them call now, tell them to tune into tax

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Talk for you right here in W four CY dot

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com W four CY Radio and have them lessened in

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because we're going to talk a little bit about truck

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to Success here later on in this in this program.

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So give a call to them and give a shout

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out so that you know, they can hear a little

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bit about this and maybe they can gain some knowledge

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that hey, that need to be at truckt to Success.

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But you know, one of the things that we we

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look at when I'm talking at these different programs, we

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talk about the most expensive mistakes that cost business owners

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thousands of dollars every year. And you know what that

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biggest mistake is. It's the failure to plan. You know,

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you've got to have a plan. Now we're not just

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talking about a business plan, we're talking about tax plans.

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You know.

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One of my favorite lines was said by William H. Renquest,

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Chief Justice of the Supreme Court, and he said, there

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is nothing wrong with the strategy to avoid the payment

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of taxes. The Internal Revenue Code does prevent that. Now,

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that came from a former Chief Justice of the Supreme Court. Now,

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what does the Internal Revenue Code. Actually do it provides

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the roadmap to avoid the payment of taxes. Yes, it

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mandates you have to file a tax return. Yes, it

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mandates here's what's reportable. It gives you the roadmap on

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how you can get around taxes. How do you maneuver

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in your business in your life to avoid the payment

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of taxes, minimize your tax at burden. You know why

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tax planning because it's the key to your financial defense. Also,

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if you're doing tax planning, it's going to guarantee results,

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that's right. What results does it guarantee? If you are

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planning and doing strategies to avoid payment of taxes, legally,

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the results are guaranted heed to save you money on

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your taxes, that's right. Gives you guarantee. You know, we're

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talking about not just income taxes, but we're also talking

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self employment taxes. So when you are employed, you know

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you're just dealing with WQ taxes and you know you're

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going to use every plan that you have out there.

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Now when you're self employed, you're also trying to avoid

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not just the income tax out of it, but you

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want to avoid the self employment tax, Social Security medicare

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You know that adds fifteen point three percent right there

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to your taxes automatically from your bottom line from your business,

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So it becomes really really important to do that. You know,

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we start talking about self employment taxes, you know, it

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has a couple of components to it. It's social Security

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and for twenty twenty five year tax two one hundred

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and seventy six hundred of your combined wages to net earnings,

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so that's at twelve point four percent. Now twenty twenty

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six projected, your your wage base is going to go

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all the way up to one hundred and eighty three thousand,

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six hundred, so it becomes very very important. Now you

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add to that the Medicare tax, so there's no wage

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based limit on that, and it's two point nine percent

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of all your self employment taxes comes expensive and then

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because you're not taxed enough, if you're married filing joint

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over two hundred and fifty thousand, single over two hundred thousand,

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or married filing separate over one hundred and twenty five thousand,

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you get another point nine percent Medicare tax if your

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wages compensations self employment income to together with your spouse.

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If you're filing joint exceed those thresholds. So you know,

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when you start thinking about how we're going to start

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planning for what we're doing, it has to start with,

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especially if you're in business, how do you reduce your

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self employment income to get that income down? Because where

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you are in business, especially when you're self employed, is

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going to dictate how much money you're going to pay

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in taxes. Now you've got to use the tax go

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to your strategy the best possible way.

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Now.

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I always say, you know what you're doing is you're

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looking at your income and then you start your planning

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and you start figuring out where you want to go.

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And one of the big things you've got to start

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looking at is how are you classifying the money that

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you're spending Is it business expenses? And if you're missing

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business expenses or you're paying expenses for your business out

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of your personal and you're not taking the deduction, you're

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losing because you lose every time you spend after tax

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dollars it could have been pre tax. So you want

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to move the money that you're spending today for your

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business and making sure you're getting every deduction possible. You're

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finding every business expense that should be written off in

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your business to lower that business income, to reduce your

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self employment taxes, social Security Medicare, and then also reduce

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on top of that your federal income tax savings, savings savings.

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That's what it comes down to is how do you

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maximize those deductions from your gross income to reduce your

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net income, to reduce your Social Security, Medicare, self employment taxes,

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federal income taxes, state income taxes. If you're in a state,

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also that it has income tax from there. So you know,

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I suggest making sure you've got a good bookkeeper, you've

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got a good tax preparer, and you make sure you're

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maximizing your deductions. Now we're gonna take a quick break here.

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We're gonna come back and we're going to talk more

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about keys to cutting your taxes, your tax planning. Do

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that right after this.

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We have only scratched the surface of today's show. Please

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stand by as Barry G. Fowler will be right back

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with tax talk for you. If you own the IRS

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or are going through an IRS audit, don't go at

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it alone. Call Taxation Solutions Tax Relief at eight eight

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eight nine three zero one zero one six. We are

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your solution for irs, debts, audits, back taxes, garnishments, leans

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and levees. Whether you're an individual or business, you need

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a solution and a strong, aggressive tax resolution. Don't let

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the IRS walk all over you. Stop the IRS now

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call eight eight eight nine zero one zero one six

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or go to Taxation Solutions dot net now for a

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free no obligation consultation. Let's get back to tax stock

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for you with more tax stock once again. Here's your host,

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Barry G. Faller.

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Hey, welcome back. We're talking about keys cutting your taxes,

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tax planning, both bits and personal. You know, a lot

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of this is going to be focused around business, but

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we're also going to talk about personal things that you

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can do in your personal life to lower those income

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taxes down as well. The goal isn't getting the biggest refund.

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You know. Yeah, you think that's fun, but realistically, all

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you've done is loan money interest free to the federal government.

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And so you know, if you're using tax planning and

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you're using strategies to lower your income taxes down, then

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you can also adjust you're with wholes as well and

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file you know the new W four and lower the

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amount they're going to withhold because it's about keeping more

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money in your pocket, more money that you can save

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and invest that you can earn interest on or make

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money off of through investments or whatever you want to do.

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It's not about loaning the government money so you get

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a big refund, because it's not the government given back

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giving you money, it's giving back your money. And so

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we don't want to do that tax planning, you know,

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this is what this is all about, saving you money

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on your taxes because you don't remember. And I ingrain

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this into people's heads. And if you're in business, you

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lose every time you spend after tax dollars that could

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have been pre tax, you know. And some of that

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is true, you know, as a individual, if you have

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plans available to you through the companies you work for

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to put money into maybe an HSA four H one ks,

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flexible spending arrangements, maybe childcare is spending where they can

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pull that money out pre tax, and then you can't

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do it, you know, I have to laugh. And I

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talk about reading tax code, but I also talk about

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reading other documents. When you're in business, before you sign something,

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you read insame with your personal life. My father ingrained

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in me that you never sign anything that you haven't read.

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Then it goes with your tax return. Do you have

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somebody preparing your tax return, Go through it and read it,

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look at it, make sure the numbers are correct, because

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you are signing an underpenalties of perjury. And you know,

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we want to make sure that you have the opportunity

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to review the taxes that you have. So yes, we

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read the tax code, and we read the changes that

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are done, including the changes in the nine hundred pages

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that was in the one big, beautiful bill, and then

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we make plans for our clients to make this work.

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Now.

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Amazingly enough, excuse me, amazingly enough. Some politicians have never

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read the complete code. Some politicians never met a tax

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that they didn't like, and many politicians just vote because

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somebody in their office and staff that read it said, yes,

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you should vote for this. Does it make it right? Now?

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You know, when we talk to people, when we hear

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you know, your celebrities and other people out there, you know,

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everyone is always good when the tax is on someone else. However,

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when you now reach that income level that you thought

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it was okay to be taxed more on, you're going

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what I didn't vote for? This. Yes, you did vote

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for more tax and you get there, you have to

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pay that more tax. You know, most celebrities are good

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at discussing taxes and increases, but don't really want to

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pay more than themselves. That's why they do. You tax Realistically,

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anybody that had the money that wanted to spend and

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pay more money into the federal government, they could just

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write a check and not increase taxes. They could go

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pay part of the deficit down. Love to see them

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do it because it would help your kids, my kids,

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my grandkids, your grandkids, and the future generations if we

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would pay this debt off from the federal government. But

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every politician, every celebrity, every rich person, every smart person,

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they all have a tax plan. They all planned to

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figure out how to lower those taxes down. Now in

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tax Plunny, we're looking at the opportunities that came up

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to us in the One Big Beautiful Bill, you know,

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the one Big Beautiful building President Trump signed July fourth,

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twenty twenty five. Outfitting had a wide range of provisions

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that helped nearly every single taxpayer, including individuals, corporations, pass

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through entities, tax exempt organizations, and one of the biggest

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benefits was so Trump tax cuts were made permanent. We

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weren't going to get back to going back to the

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old law. So that meant, you know, standard deduction is

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going to remain high. Yes, you know, oh I don't

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get to take it. Call my mortgage interest and my

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charitable contributions and my real estate taxes. And there may

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have been some limits on some of these things, but

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that standard deduction was really really high, so that's really nice.

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They added in the senior deduction. Hey, it doesn't matter

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whether you're taking Social Security or not. If you're aged

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sixty five before the end of the year, you get

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a six thousand dollars deduction for each individual. So if

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you're married, you're both over sixty five, you both get

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a six thousand dollars deduction, and it doesn't matter whether

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you're already taking Sell Security or not. Now they do

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have phase outs, so again it's hey, are we're finding

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a way that you're going to tax the rich and

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that phase out is at seventy five thousand and or

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the phase out as one hundred and fifty see tax planning.

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Reducing that income maybe from your business adds another deduction.

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If you can get that business net income down below

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these levels as well deferring some income using tax deferred accounts,

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things like that that can bring things down. And that's

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all the stuff you got to look at. Child tax

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credits went up to twenty two hundred beginning in this year,

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and then it's going to index with inflation, state and

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local tax deductions. It's gone up to forty thousand, but

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then it phases down to ten thousand. If you make

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over five hundred thousand. Tax strategies got to come into

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play into these things, and that's using such things as depreciation.

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One big beautiful bill has depreciation in here for it.

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They extended the bonus depreciation, the ability to elect one

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hundred percent bonus appreciation under Section one sixty eight for

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qualified property. I mean it could be tractors, trailers, business equipment, computers.

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You name a machinery that you may need in your business,

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and it's as if it's acquired after January nineteenth of

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this year, you can take the bonus depreciation. So it

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gives you that ability to reduce that income down. Now,

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what this means is that one hundred percent bonus appreciation

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means you are allowed to immediately deduct the full cost

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of qualified property in the year it's placed into service,

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rather than depreciating it over its useful life. Now there's

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some disadvantages to this as well, because if you're using

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one hundred percent bonus depreciation, you may lose some deductions

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than the future that may help you. So depending on

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your tax situation, your tax bracket, the year the company

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does not buy any fixed assets, your taxes could end

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up being much higher. So maybe you got to look

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at spreading this out as well, in not using bonus appreciation.

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How it's going to impact the future planning we're going

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to plan how we're going to do this. We can

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also use Section one seventy nine expensing of your assets.

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The new law allows higher limits for the first year

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upfront deductions on business purchases. The bill makes Section one

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seventy nine expensing permanent, doubles the maximum deduction to two

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point five million or the phase out of four million

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in equipment purchases. And it's again it's only applicable to

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property placed after taxable years after December thirty one, twenty

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twenty four, so twenty twenty five and beyond you're going

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to be able to do that. So we're using these

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kinds of s ategies to do that and finding ways

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to reduce your income to the right level. Now, when

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we do this very smartly, either wather we're using Section

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one seventy nine or bonus appreciation, we're going to use

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it to the extent that it puts you in the

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right marginal tax bracket, doesn't affect future years, so that

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you can look at your income spread out over period

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of time. And we come back, we're going to talk

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about how we use entities for tax planning purposes to

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save you money on your taxes via tax planning and

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reducing that income to the right level and the lowest

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amount allowed by law. And we're going to do that

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right after the spring.

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We have only scratched the surface of today's show. Please

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00:20:49.759 --> 00:20:53.000
stand by as Barry chief Fauer will be right back

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with tax talk for you. As an owner operator, you

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00:20:59.200 --> 00:21:03.119
already spend much time away from your family. Trucker Tax

333
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Tools handles all your bookkeeping in taxes. No matter what

334
00:21:06.519 --> 00:21:09.640
level trucker you are. Life on the road can be taxing,

335
00:21:10.079 --> 00:21:13.079
but that doesn't mean that your wallet or time with

336
00:21:13.160 --> 00:21:17.119
your family should suffer. Trucker Tax Tools makes your life

337
00:21:17.200 --> 00:21:20.880
run smoothly. Go to Trucker tax Tools dot com for

338
00:21:20.960 --> 00:21:23.960
a free guide that will give you the tools to

339
00:21:24.359 --> 00:21:28.319
never worry about your taxes again. Call Trucker Tax Tools

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eight seven seven nine sixty six two four seven seven

341
00:21:33.079 --> 00:21:36.200
or go to Trucker tax Tools dot com now and

342
00:21:36.400 --> 00:21:42.640
let the experts keep you trucking. Let's get back to

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tax stock for you with more tax stock once again.

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Here's your host, Barry G. Foller.

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Hey, welcome back. I hope you're enjoying this nice conversation

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we're have about tax planning, reducing your taxes to the

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lowest amount allowed by law. You know, we're talking about

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you know, hey, where do we start? And you know,

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you've got to start planning when you're in business, exactly

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what your net income is going to be, what's projected

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to be, and then kind of move and go forward

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from there. Whether you're using retirement accounts or other vehicles

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that you can do this. But if you're in business,

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one of the biggest choices you've got to make is

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bus as entity. How are you going to be set up? Now?

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You know, many people start out as a DBA sole proprietorship.

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Some people here, oh, I've got to be an LLC

358
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limited liability company because that's a be all and all.

359
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Because I was standing and talking to somebody else that's

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in business, and that's what they told me I should do.

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Some say, hey, I should be a corporation escorp, or

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should maybe I should be a C corp. You know,

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there's a lot of choices out there, and you've got

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to sit down and visit with your pre prayer you're

365
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consultant to determine which one's right. A DBA, bottom line,

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you're going to be taxed, self employment tax on the

367
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bottom line, federal income tax. All that's going to compound.

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But does it make it right to move into an LLC. Well,

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an LLC is going to be really no better than

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a DBA as far as tax goes when you're a

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sole member, unless you make the election to become an escort.

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But then that could get expensive for you. So where

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is it going to make sense and at what level

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does it make sense? Well, where it makes sense is

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you got to look at the costs the savings for

376
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you to be an es court versus a soul proprietor.

377
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The difference in the taxes and the difference in the costs. Now,

378
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as an LLC, you might be a multi member LLC

379
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and can file a partnership return, but again it has

380
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the cost of filing that return. So what do we

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discuss with our clients. We do a complete analysis with

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00:24:02.519 --> 00:24:06.400
our clients to determine. Hey, if you become an escort

383
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or a multi member LLC husband and wife, let's say,

384
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what's the difference in the costs. Well, if you become

385
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an escort, you've got to have the ESCORP return done

386
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and you've got to have payroll services, So that cost

387
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is going to cost that's going to cost you money

388
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to have those things done. So your savings when you

389
00:24:26.880 --> 00:24:29.880
become an escort really comes down to is how much

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in my saving via self employment tax? So if your

391
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self employment tax is still going to be around the same,

392
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then why be an escort to go through all the

393
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extra paperwork that needs to be done? Or maybe why

394
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does it require you to become a partnership because it

395
00:24:50.119 --> 00:24:53.519
requires additional paperwork to be done. So this is where

396
00:24:53.599 --> 00:24:57.480
our analysis comes in. If you set a reasonable salary,

397
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because as an escort or as a partnership, any business

398
00:25:01.079 --> 00:25:04.440
owner working within the business has to be paid what

399
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they consider to be a reasonable salary for their work

400
00:25:07.480 --> 00:25:10.559
they can be done. Now, what is a reasonable salary.

401
00:25:10.880 --> 00:25:12.759
You've got to look at what work you're doing. Some

402
00:25:12.839 --> 00:25:15.880
of it may be administrative, so may you may be

403
00:25:16.079 --> 00:25:19.039
the janitor, and some may be the real high levels

404
00:25:19.920 --> 00:25:24.240
CFO CEO, chairman of the board, and you should be

405
00:25:24.359 --> 00:25:28.279
paid accordingly. Some of it may be mid level work.

406
00:25:28.720 --> 00:25:31.079
You've got to analyze what you do with your day

407
00:25:31.640 --> 00:25:35.039
and determine what those pay rates would be to determine

408
00:25:35.079 --> 00:25:39.480
what a reasonable salary for you in your business should be.

409
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And then once we get from there, then we can

410
00:25:42.119 --> 00:25:48.720
determine along with you what you should be paid and

411
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how you should be paid. And that's the fun part.

412
00:25:52.359 --> 00:25:56.799
We get into doing that and we get into figuring

413
00:25:56.839 --> 00:26:03.279
out how we're going to save you money on your taxes. Now,

414
00:26:03.359 --> 00:26:06.079
other things that you're going to be missing is maybe

415
00:26:06.119 --> 00:26:10.519
you're missing medical benefits. You know, healthcare costs have gone

416
00:26:10.519 --> 00:26:14.319
through the roof, so you know, maybe it's binding a

417
00:26:14.359 --> 00:26:19.480
way as a business entity that you can take the

418
00:26:19.559 --> 00:26:23.799
deduction for healthcare. So you know, if you're running a

419
00:26:23.839 --> 00:26:26.240
business and the only people working on it in the

420
00:26:26.319 --> 00:26:30.440
business is you, and maybe you hire your your spouse,

421
00:26:30.960 --> 00:26:35.359
and you could give benefits to your spouse. Maybe you're

422
00:26:35.400 --> 00:26:38.400
running a partnership. If your spouse is less than a

423
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five percent owner in the business, hire them. You can

424
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give them benefits. If you're an escorp and your spouse

425
00:26:46.200 --> 00:26:52.680
is less than two percent, then you can hire the spouse.

426
00:26:52.720 --> 00:26:55.440
If you're a c corp, you can hire yourself and

427
00:26:56.279 --> 00:27:00.480
give medical benefits. And you can even have medical reimbursement plans.

428
00:27:00.839 --> 00:27:03.960
So there's really kind of cool things. Now, if you

429
00:27:03.960 --> 00:27:06.839
start hiring other people, your plan has to be non

430
00:27:06.920 --> 00:27:12.200
discrimination and must cover all eligible employees. However, you can

431
00:27:12.279 --> 00:27:15.880
exclude those that are under age twenty five, work less

432
00:27:15.880 --> 00:27:18.759
than thirty five hours a week, less than nine months

433
00:27:18.920 --> 00:27:22.759
a year, less than three years of service. But if

434
00:27:22.799 --> 00:27:25.640
you've got multiple companies, then you're considered a control group

435
00:27:25.680 --> 00:27:28.279
and you've got a whole new problem you've got to

436
00:27:28.319 --> 00:27:32.279
go through. But if you can do this and talk

437
00:27:32.319 --> 00:27:34.440
to your tax plan, don't just jump out and do this,

438
00:27:34.920 --> 00:27:37.319
because you've got to read the fine print of what

439
00:27:37.359 --> 00:27:39.440
you can do and can't do. But you can have

440
00:27:39.480 --> 00:27:43.799
a medical reimbursement for yourself, for your spouse, for your dependence,

441
00:27:44.359 --> 00:27:46.880
not subject to the ten percent floor. It can avoid

442
00:27:47.079 --> 00:27:52.079
self employment tax and supplements your spouse's coverage as well,

443
00:27:52.160 --> 00:27:55.279
so she could be working for you and qualify and

444
00:27:55.319 --> 00:27:59.000
maybe she's got coverage through her other job and you supplement.

445
00:27:59.279 --> 00:28:01.240
So it's a real nice thing that you can do.

446
00:28:02.720 --> 00:28:06.079
You know, eligible expenses would be stuff like major medical,

447
00:28:06.200 --> 00:28:14.200
long term care, meta gap, dental vision, chiropractic, brasics, LASIK, fertility,

448
00:28:14.640 --> 00:28:17.799
over the counter medications, and a bunch of other stuff.

449
00:28:18.559 --> 00:28:20.799
The other thing you can be doing, and this includes

450
00:28:21.839 --> 00:28:26.680
if you've got a medical plan that qualifies, you can

451
00:28:26.799 --> 00:28:30.160
use an HSA even if your employer doesn't offer it,

452
00:28:30.200 --> 00:28:34.480
but it's a high deductible plan that qualifies for an HSA,

453
00:28:35.119 --> 00:28:40.240
you can do a Health Savings Account HSA. It gives

454
00:28:40.240 --> 00:28:44.440
you tax deductible savings. You can contribute up to almost

455
00:28:44.440 --> 00:28:47.759
eight thousand dollars a year for family about four thousand

456
00:28:47.799 --> 00:28:51.799
for individuals. Account can continue to grow tax free and

457
00:28:52.039 --> 00:28:58.039
guess what, tax free withdrawals for qualified expenses. Now, this

458
00:28:58.079 --> 00:29:00.160
is not a user or to lose it account. It's

459
00:29:00.160 --> 00:29:02.880
not like some of these flexible spending arrangements that you have.

460
00:29:04.480 --> 00:29:07.200
You can use this to put money aside, and if

461
00:29:07.200 --> 00:29:12.720
you don't use it then if you don't, sorry about that.

462
00:29:13.519 --> 00:29:16.200
Forgot to turn my ringer off on my phone before

463
00:29:16.240 --> 00:29:17.920
we started this program, So we're going to do that

464
00:29:18.000 --> 00:29:20.519
here real quick. For this person calls me back again.

465
00:29:20.559 --> 00:29:24.559
Another scam call though. So it's a great way to

466
00:29:24.559 --> 00:29:28.400
put money aside every single year and then that account

467
00:29:28.440 --> 00:29:34.319
grows tax free. Most health savings accounts HSA's like HSA

468
00:29:34.440 --> 00:29:38.440
Bank and some of the other ones allow you to

469
00:29:38.559 --> 00:29:42.839
do investments, so you can invest in mutual funds and

470
00:29:42.880 --> 00:29:47.039
then money would grow accordingly. Again, it's something that's another

471
00:29:47.119 --> 00:29:50.160
investment you kind of got to watch because you don't

472
00:29:50.200 --> 00:29:55.319
want to see it lose money on that as well.

473
00:29:55.480 --> 00:29:59.799
So you've got to take a look at these things

474
00:30:00.079 --> 00:30:03.200
and find ways to do it. Now. The other things

475
00:30:03.200 --> 00:30:06.119
that we tell people to do is we look at

476
00:30:06.240 --> 00:30:10.000
retirement accounts. Now, there are all kinds of different retirement

477
00:30:10.000 --> 00:30:15.559
accounts for you. If you're a business owner, you have

478
00:30:15.640 --> 00:30:19.039
multiple options. If you're an employee, most of the time,

479
00:30:19.160 --> 00:30:21.759
if you have retirement accounts available to you, it's your

480
00:30:21.799 --> 00:30:22.519
four to oh one k.

481
00:30:23.000 --> 00:30:23.200
Now.

482
00:30:23.279 --> 00:30:27.960
I tell people, and especially new young people that come

483
00:30:27.960 --> 00:30:29.839
out of college or maybe you just got to high

484
00:30:29.880 --> 00:30:32.440
school and you go and you start working. First thing

485
00:30:32.480 --> 00:30:35.920
I tell them is, if your employer is matching, make

486
00:30:35.960 --> 00:30:39.759
sure you contribute at least every dollar they're going to match.

487
00:30:40.240 --> 00:30:43.440
If they're not matching, maximize what you put in any

488
00:30:43.480 --> 00:30:45.920
way into your four to oh one K that the

489
00:30:45.960 --> 00:30:49.079
company is offering, and then never look at it. Why

490
00:30:49.160 --> 00:30:52.519
do I say this, Well, because it's kind of like taxes.

491
00:30:52.799 --> 00:30:57.160
If you're a W two employee, you never feel the

492
00:30:57.200 --> 00:31:00.440
money that they pull out of your paycheck after the

493
00:31:00.440 --> 00:31:03.400
first paycheck. Yes, when you get your first paycheck. If

494
00:31:03.440 --> 00:31:06.400
you're like my daughter, her first paycheck that she got

495
00:31:06.759 --> 00:31:09.880
working her job, she looked at this and called me up, dad.

496
00:31:10.279 --> 00:31:13.640
They'd taken this much money out in taxes. Yes, I

497
00:31:13.720 --> 00:31:17.799
understand that. Why why so much? Well, you got to

498
00:31:17.839 --> 00:31:21.799
start paying into Social Security and you've got federal withholding.

499
00:31:22.480 --> 00:31:24.839
Luckily we live in the state. There's no state income TAXI.

500
00:31:24.880 --> 00:31:27.880
You don't have to worry about that. God bless taxes,

501
00:31:29.400 --> 00:31:33.079
you know. So you sit here and you say fine.

502
00:31:33.400 --> 00:31:37.000
After that first conversation, she never missed a dime that's

503
00:31:37.039 --> 00:31:40.640
going into Social Security and Medicare. She never felt it,

504
00:31:40.759 --> 00:31:43.480
never sees it anymore. So once you get past that

505
00:31:43.599 --> 00:31:46.160
first check. You start figuring out how to live within

506
00:31:46.200 --> 00:31:48.799
your means. So I tell people to do that. My son,

507
00:31:49.000 --> 00:31:51.640
he got out of school, took a job at a bank,

508
00:31:51.960 --> 00:31:53.839
and he was talking to me about it. I said, no,

509
00:31:54.119 --> 00:31:57.200
maximize your four to oh one K. You'll never feel it.

510
00:31:57.240 --> 00:32:00.000
But Dad, our budget, I don't care what your budget

511
00:32:00.119 --> 00:32:03.160
it says today. Your budget will be modified for what

512
00:32:03.279 --> 00:32:05.680
your take home pay is. Plus your take home pay

513
00:32:05.720 --> 00:32:07.920
will be a little bit higher than you think because

514
00:32:07.960 --> 00:32:10.480
of some of the other savings it's involved. You want

515
00:32:10.559 --> 00:32:14.799
to maximize those retirement plants. Now, that's the same thing

516
00:32:14.839 --> 00:32:19.319
that goes for you as a sole proprietor a business owner.

517
00:32:19.680 --> 00:32:23.319
You're going to look at the different kind of retirement plants,

518
00:32:23.359 --> 00:32:28.519
your simple iras, you're simplified employee pension plans SEPs, and

519
00:32:28.680 --> 00:32:32.119
your four to one case. Which one's right for you? Well,

520
00:32:32.440 --> 00:32:35.960
you know each one of them has their limits, and

521
00:32:36.480 --> 00:32:40.880
you know you have limits placed on standard iras. You

522
00:32:40.920 --> 00:32:43.440
know that you can put in there. You know each

523
00:32:43.519 --> 00:32:46.599
year you have limits on your four to oh one

524
00:32:46.640 --> 00:32:51.319
ks and your simplified employee pension plants. Now haven't modified

525
00:32:51.359 --> 00:32:54.240
this for some of the new rules that have come out,

526
00:32:54.319 --> 00:32:58.799
but SEP is considered to be like a turbocharged IRA.

527
00:32:59.240 --> 00:33:01.720
You can attribute up to twenty five percent of your

528
00:33:02.039 --> 00:33:06.400
net income from your business MAX contributions right around fifty

529
00:33:06.440 --> 00:33:09.359
five thousand. I think they've increased this one. But if

530
00:33:09.400 --> 00:33:12.960
you do the SEP plans and stuff, you've got to

531
00:33:14.279 --> 00:33:19.119
contribute for all eligible employees. If you're contributing for yourself,

532
00:33:20.759 --> 00:33:26.680
and the contributions are directed straight to employees IRA type plan,

533
00:33:26.799 --> 00:33:31.680
but there's no administration fees, you know, simple iras. In

534
00:33:31.759 --> 00:33:34.400
a business you can defer up to around twelve thousand,

535
00:33:34.519 --> 00:33:37.799
five hundred add another three thousand if you're age fifty

536
00:33:37.839 --> 00:33:42.119
and above. That's including business match or profit sharing, and

537
00:33:42.279 --> 00:33:46.400
you contribute to an IRA and again no annual fees.

538
00:33:47.480 --> 00:33:49.279
Your four oh one K is a little bit more

539
00:33:49.279 --> 00:33:51.640
complicated one and you're going to defer up to one

540
00:33:51.720 --> 00:33:54.400
hundred percent of your income up to seventeen thousand, five

541
00:33:54.480 --> 00:33:58.759
hundred add more. If you're over fifty, your employer contributes

542
00:33:58.839 --> 00:34:02.200
up to twenty five percent of covered com MAX contribution

543
00:34:02.319 --> 00:34:07.559
fifty two thousand. But it does have loans hardship withdrawals, rollovers,

544
00:34:08.320 --> 00:34:11.880
and it does have some simplified administration, but does have

545
00:34:11.960 --> 00:34:16.199
fees so that you can use retirement burned. Hey'm running

546
00:34:16.239 --> 00:34:17.760
over here. I've got to tell you a quick break,

547
00:34:17.800 --> 00:34:20.119
and I promised that I was going to talk about

548
00:34:20.159 --> 00:34:22.840
truck to Success. I have got to get to truck

549
00:34:22.880 --> 00:34:25.559
to Success. We're going to talk about the truckers and

550
00:34:25.639 --> 00:34:28.400
why you should go to truck to Success put on

551
00:34:28.519 --> 00:34:31.559
by Old Idea and Oh Ideas Foundation. We're gonna do

552
00:34:31.599 --> 00:34:33.000
that right after this break.

553
00:34:34.039 --> 00:34:37.679
We have only scratched the surface of today's show. Please

554
00:34:37.719 --> 00:34:40.960
stand by as Barry G. Fowler will be right back

555
00:34:41.079 --> 00:34:46.880
with tax talk for you as an owner operator. You

556
00:34:47.119 --> 00:34:50.559
already spend too much time away from your family. Stop

557
00:34:50.639 --> 00:34:55.039
spending time doing paperwork. Go to Trucker tax tools dot com,

558
00:34:55.079 --> 00:34:59.880
a solution built specifically for truckers. Trucker tax tools dot Com.

559
00:35:00.280 --> 00:35:06.480
Your life runs smoothly. Let's get back to tax stock

560
00:35:06.559 --> 00:35:11.039
for you with more tax stock once again. Here's your host,

561
00:35:11.519 --> 00:35:11.960
Barry G.

562
00:35:12.239 --> 00:35:18.119
Faller and a short time we've got this program. You know,

563
00:35:18.199 --> 00:35:20.679
time flies when we're having fun, and you know I

564
00:35:20.800 --> 00:35:25.760
promise to talk about Old Ida Truck to Success, and

565
00:35:26.559 --> 00:35:28.719
you know it's coming up here really soon. Deadline to

566
00:35:28.760 --> 00:35:33.119
register is just around the corner. You know, if you're

567
00:35:33.119 --> 00:35:36.320
coming in person, you've got to sign up by October first,

568
00:35:37.079 --> 00:35:39.480
so just a couple of days away. They do extend

569
00:35:39.519 --> 00:35:44.840
the deadline if it's by zoom to October twentieth. But hey,

570
00:35:44.840 --> 00:35:48.840
if if you are an owner operator truck driver going

571
00:35:48.880 --> 00:35:51.800
to become one, or looking to become one, or maybe

572
00:35:52.000 --> 00:35:54.039
you're an owner operator and you're just looking to improve

573
00:35:54.119 --> 00:35:58.079
your business, then you should really consider o IDAs Truck

574
00:35:58.159 --> 00:36:03.039
to Success Seminar. It's three days October twenty first to

575
00:36:03.119 --> 00:36:10.519
the twenty third in Blue Springs, Missouri. It features Old

576
00:36:10.559 --> 00:36:15.760
Ida's staff and then other trusted experts come in and

577
00:36:15.840 --> 00:36:18.960
talk as well, especially like myself. I get to talk

578
00:36:19.000 --> 00:36:26.239
about bookkeeping, taxes, at least purchase business entities. And this

579
00:36:26.400 --> 00:36:35.639
whole thing is a fantastic seminar, having business experts available

580
00:36:36.159 --> 00:36:40.199
to you to talk to, and not just Old Idea staff,

581
00:36:40.239 --> 00:36:43.679
but like me, I am there to have discussions with

582
00:36:43.719 --> 00:36:48.119
you outside of the classroom, even in the evenings in

583
00:36:48.159 --> 00:36:50.440
the lobby, I sit and talk and allow you guys

584
00:36:50.440 --> 00:36:53.000
to ask whatever questions you want so that you can

585
00:36:53.920 --> 00:36:57.559
be better at what you do. I mean, Old Idea

586
00:36:57.800 --> 00:37:01.239
comes in and they start talking about developing a business plan.

587
00:37:02.320 --> 00:37:06.239
Business plans that you know help you start planning for

588
00:37:06.320 --> 00:37:10.719
success in your business. And every business should have a

589
00:37:10.760 --> 00:37:14.320
business plan. You know, we talk about over ninety percent

590
00:37:14.559 --> 00:37:19.320
of businesses fail within their first year, primarily due to

591
00:37:19.480 --> 00:37:22.920
lack of planning. You've got to do your homework to

592
00:37:22.960 --> 00:37:25.880
be in business, and this is a critical first step

593
00:37:26.559 --> 00:37:30.239
and go to old idea truck to success, and that

594
00:37:30.360 --> 00:37:33.239
becomes your first step in the step in the right

595
00:37:33.280 --> 00:37:35.800
direction to making sure you got the right plan. Hey,

596
00:37:35.840 --> 00:37:37.599
even if you spend the money and you decide you

597
00:37:37.599 --> 00:37:39.519
don't want to go out and become an owner operator

598
00:37:39.599 --> 00:37:42.119
or you don't want to be anything, but maybe least

599
00:37:42.199 --> 00:37:47.079
on at least you've learned from this and prevented sometimes

600
00:37:47.119 --> 00:37:54.519
those mistakes. They talk about equipment and equipment financing. You know,

601
00:37:55.039 --> 00:37:59.199
new trucks use trucks. Should I finance? Should I do

602
00:37:59.239 --> 00:38:04.719
at least purchase residual leases, operating leases, capital leases? How

603
00:38:04.719 --> 00:38:09.360
do those things work within your business? They talk about

604
00:38:09.400 --> 00:38:14.480
the different types of insurance that you have some insurances

605
00:38:14.559 --> 00:38:18.960
that it's required by the Federal Moto Carrier Safety Associate Administration,

606
00:38:19.559 --> 00:38:24.320
and then how other insurance would work with you having

607
00:38:24.440 --> 00:38:27.239
maybe your authority or maybe if you're leased on, maybe

608
00:38:27.280 --> 00:38:30.000
you don't need it. They have it part of your lease.

609
00:38:31.599 --> 00:38:34.559
Your carrier could be responsible for having your insurance. Now

610
00:38:34.559 --> 00:38:37.360
they may charge you for it. But then again, maybe

611
00:38:37.400 --> 00:38:41.280
you want some personal liability insurance as well, see because

612
00:38:41.480 --> 00:38:44.519
kind of whoever holds that insurance is the one that

613
00:38:44.559 --> 00:38:48.239
has the most interest in it. Sometimes personal liability insurance

614
00:38:48.239 --> 00:38:51.360
goes well with whatever your carrier may be putting as

615
00:38:51.400 --> 00:38:55.280
well out there. And then insurance costs can vary greatly

616
00:38:55.519 --> 00:39:00.000
depending on where you're going, what you're hauling, things like that.

617
00:39:00.280 --> 00:39:03.639
So you've got to look at all that and then

618
00:39:04.119 --> 00:39:07.880
own authority. You know, there's a lot of pros and

619
00:39:07.920 --> 00:39:12.599
cons to operating under your own authority or leasing onto

620
00:39:12.760 --> 00:39:16.639
a carrier. You know, leasing on for a specific time

621
00:39:17.239 --> 00:39:19.639
is usually the best first step, is what O I

622
00:39:19.760 --> 00:39:23.400
DA says, And it's a good first step into becoming

623
00:39:23.400 --> 00:39:25.519
an owner operator. You know, you're going to sign a

624
00:39:25.599 --> 00:39:28.639
lease agreement, you're going to sign on with somebody, so

625
00:39:28.679 --> 00:39:31.719
you're going to be a least carrier, least owner operator,

626
00:39:32.199 --> 00:39:35.559
and so you kind of want to look at those

627
00:39:35.599 --> 00:39:38.480
things and decide. Now, you know, you get into your

628
00:39:38.519 --> 00:39:41.800
own authority and you know, you have to apply for

629
00:39:41.840 --> 00:39:44.599
that through the Department of Transportation. Oh IDEA walks you

630
00:39:44.639 --> 00:39:48.320
through this. It's not complicated, but it can be very confusing.

631
00:39:48.400 --> 00:39:50.199
So you want to make sure you got the right

632
00:39:50.239 --> 00:39:52.840
advice and the right people helping you. You know, we

633
00:39:53.000 --> 00:39:57.280
even talk about you know, safety audits and compliance reviews.

634
00:39:57.480 --> 00:40:00.400
They do not me. I'm not the expert in those things.

635
00:40:01.760 --> 00:40:07.480
We talk about drug and alcohol consortiums and the requirements permits,

636
00:40:07.760 --> 00:40:13.400
licensing brokers, factoring. I'm totally against factoring, but some people

637
00:40:13.519 --> 00:40:15.119
need to use it, especially if you've got your own

638
00:40:15.119 --> 00:40:18.000
authority and you've got to do your own collections. Sometimes

639
00:40:18.079 --> 00:40:22.559
using factors helps you because they're the ones that are

640
00:40:22.559 --> 00:40:24.719
going to send the invoice out, they're the ones that

641
00:40:24.840 --> 00:40:27.760
are going to collect that invoice. Yes, they charge you

642
00:40:27.800 --> 00:40:33.519
a pretty absorbent in fee, but then again, so does companies.

643
00:40:33.599 --> 00:40:37.320
Like your credit card companies charge you a pretty good

644
00:40:37.400 --> 00:40:42.599
fee to collect and process a credit card. So if

645
00:40:42.639 --> 00:40:46.599
you can't afford to wait, you know, ten days, thirty days,

646
00:40:46.679 --> 00:40:49.400
sixty days, ninety days, whatever it may be that your

647
00:40:50.719 --> 00:40:55.920
carrier takes to pay you, factoring can be a good

648
00:40:56.000 --> 00:40:58.719
way of doing it. Broker, and sometimes they keep too

649
00:40:58.800 --> 00:41:03.920
much money. You really got to look at what you're

650
00:41:03.960 --> 00:41:07.239
doing and how you're doing it. But you got to

651
00:41:07.239 --> 00:41:10.000
do your due diligence behind the brokers and everything else.

652
00:41:10.960 --> 00:41:13.960
And then we have the most important section of the

653
00:41:14.000 --> 00:41:17.559
whole thing. Taxes in business structure. You know, you as

654
00:41:17.599 --> 00:41:21.719
an independent business person, you entered into a new tax here,

655
00:41:22.079 --> 00:41:24.239
and it's kind of what we talk about. How you're

656
00:41:24.239 --> 00:41:27.639
going to pay taxes, You're estimated taxes its first year,

657
00:41:27.679 --> 00:41:30.480
How you're going to estimate your revenue and your income,

658
00:41:30.719 --> 00:41:35.239
What deductions are allowed and what or not? How to

659
00:41:35.280 --> 00:41:39.679
read a financial statement profit and loss in the income statement,

660
00:41:39.920 --> 00:41:43.000
the balance sheet, Why a statement of cash flows may

661
00:41:43.039 --> 00:41:46.159
be important? What is your cost per mile? How to

662
00:41:46.280 --> 00:41:51.760
use those financials to determine profitability, to determine what your

663
00:41:51.800 --> 00:41:55.360
company may be worth. You know, knowing how to depreciate

664
00:41:55.400 --> 00:42:00.519
your truck and win. What deductions you're going to as

665
00:42:00.559 --> 00:42:03.519
an owner operator, whether you're under your own authority or

666
00:42:03.559 --> 00:42:06.920
whether you're leased on. What else can you deduct? What

667
00:42:07.000 --> 00:42:12.559
are we looking for? What expenses ordinary necessary business expenses,

668
00:42:13.039 --> 00:42:16.199
other expenses? How do you deduct your cell phone? All

669
00:42:16.280 --> 00:42:20.239
these things we get to talk about become strategically important

670
00:42:20.360 --> 00:42:25.760
to you in operating your business, maximizing your profit and

671
00:42:25.880 --> 00:42:28.920
minimizing your taxes. Do you just don't that bring you

672
00:42:29.000 --> 00:42:32.480
back full circle? Tax planning pure and simple. You know,

673
00:42:32.559 --> 00:42:35.599
we go through in Truck to Success and we talk

674
00:42:35.679 --> 00:42:39.119
about the tax code, how we use it to your advantage.

675
00:42:39.400 --> 00:42:42.280
How do you fit in each of the brackets. Where

676
00:42:42.280 --> 00:42:45.000
do the brackets make sense? And where are you trying

677
00:42:45.000 --> 00:42:49.480
to be? Tax planning for you as a business owner,

678
00:42:49.599 --> 00:42:53.199
as an owner operator, as a truck driver, whether you're

679
00:42:53.239 --> 00:42:56.239
leased on or running your own authority. Come to Truck

680
00:42:56.280 --> 00:43:00.000
to Success coming up, Go to OIDA, Go to Truck

681
00:43:00.079 --> 00:43:03.280
to Success. All you got to do is type in search,

682
00:43:03.440 --> 00:43:06.559
oh I d A talk to your success register be there.

683
00:43:07.000 --> 00:43:09.719
Love to see you there if you're an owner operator. Hey,

684
00:43:09.920 --> 00:43:12.000
bringing us close to an end of the show. It's

685
00:43:12.039 --> 00:43:15.519
another great show that we've had. You know, next week

686
00:43:15.559 --> 00:43:20.079
bring your questions be here b Square, but join us

687
00:43:20.079 --> 00:43:24.280
every Monday, ten am Eastern time at tax Talk for You.

688
00:43:24.280 --> 00:43:28.199
You can go to tax talkfor You dot com. Follow

689
00:43:28.280 --> 00:43:30.679
us over there so you never miss this episode. You

690
00:43:30.719 --> 00:43:33.199
can go to Facebook and follow tax Talk for You

691
00:43:33.280 --> 00:43:37.079
as well. Also go to w A four c Y

692
00:43:37.199 --> 00:43:42.159
dot com W four c Y Radio and you can

693
00:43:42.360 --> 00:43:45.039
be at every one of these shows as well and

694
00:43:45.119 --> 00:43:47.880
some other great programs that we have on W four

695
00:43:47.920 --> 00:43:52.159
c Y dot com Radio. We'll see you next week

696
00:43:52.320 --> 00:43:56.000
right back here ten am Eastern time on Tax Talk

697
00:43:56.119 --> 00:43:59.800
for You again. It's tax Talk number four that are

698
00:43:59.840 --> 00:44:03.079
you dot com? Be here, We'll see you next week.

699
00:44:03.119 --> 00:44:06.199
Have a god bless, glorious and awesome this week.

700
00:44:07.320 --> 00:44:10.519
Are you an individual or business that wants to understand

701
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taxes and how they affect you? Are you looking for

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specific tax advice for self employed business owners and truckers.

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Are you behind on taxes and your bookkeeping? Are you

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dealing with the irs and ready to have some relief,

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then you need Tax Talk for You, hosted by tax

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and trucker expert Barry g. Fouer Ea. Tune in ten

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am Eastern time every Monday right here on W four

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CY Radio and Talk for TV. Don't forget to check

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this and past episodes at tax TALKFORU dot com. See

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you next week at W fourcy dot com