Oct. 21, 2024

Estimated Taxes & Corporate/Partnership Taxation

Estimated Taxes & Corporate/Partnership Taxation

Estimated Taxes everything you need to know. Corporate / partnership taxes how to file, pay and reduces taxes. Taxation Solutions

Tax Talk 4 U is broadcast live Mondays at 10AM ET and Music on W4CY Radio...

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Estimated Taxes everything you need to know. Corporate / partnership taxes how to file, pay and reduces taxes. Taxation Solutions

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 implies shall be extended to W FOURCY Radio

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or it's 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.

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Fouler EA brings you tax Talk for you right here

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on W four CY Radio.

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And Talkboard 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.

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With over thirty years of experience.

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Barry will break down taxes, bookkeeping, tax planning, and tax

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relief for individuals and businesses just like you. So let's

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have some tax Talk for you with your hosts.

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Barry G. Foul Hey, it's another great day. Welcome here

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to tax Talk for you again. Hey. Connect with us

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at tax Talk for you dot com. You can also

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connect with us over on Facebook. We enjoy bringing to

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you topics about taxes. Today, we're going to talk about

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corporate taxes, partnership taxes, estimated taxes, and why you should

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be paying those if you're self employed or maybe if

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you've got a company in doing business. We're going to

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dive right in to let's go to the corporate taxes.

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Corporate taxes are imposed on the net profit of your

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corporation or business entity by our wonderful federal government and

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state governments. Their primary source of revenue for governments. Now

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I will be perfectly on it. I've never seen a

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company that actually pays tax. The taxes are actually paid

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by the consumer. So when you are buying a product

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out there, you are actually paying in tax with your

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buying that product. Because every corporation, whether it's escort or

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a c court, whether it's traded in that stock exchange,

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has to provide some kind of benefit for its shareholders

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or owners, and that's passed through either as distributions or

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payroll or dividends depending on how the company is structured.

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So they're always passing the taxes through to you and I.

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So don't be fooled by making a company pay more

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in tax. They're going to collect it from you and

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I anyway, but there are tax on their net profit.

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So essentially, when a corporation going to generate profits from

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our operations, whether selling goods or services or other income streams,

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a portion of that profit is owe to the government

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in the format of taxes. You know, and companies are

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required to file tax returns just like you and I

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as individuals do, and they've going to detail all their

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revenue and expenses and resulting profit or loss, and then

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they pay their tax deductions credits they have available to

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them to reduce their taxes as well, and they're going

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to make very well use of it because they're going

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to do a lot of tax planning to make sure

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that they're getting every single tax credit that's available to

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them that is provided through the law and through commerce.

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You know, what you're first got to do, whether you're

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a corporation or partnership's gotta determine your taxable income. And

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you're going to start off with detailing out your revenues,

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what your revenue streams are, whether it's which products, services,

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income from leasing or running out assets, or even sale

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of assets, is all going to be income streams to

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a corporation or partnership and they're going to deduct all

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their reasonable business expenses. And so once you've got those

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clear figures, then you've got to subtract other business expenses

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as well, such as employees salaries and wages, the payroll

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taxes that they pay also for each of those employees,

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daily operating costs such as utilities, telephone, all those expenses

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as well, and then your business specific expenses as such

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as marketing, research and development. There's a wide range of

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expenses that every corporation is going to deduct out there.

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And then you're also going to have things that are

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deductible as well, such as depreciation of assets and then

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amortization of intangible assets such as goodwill. Maybe you bought

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a business or something, then you may have goodwill that

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you're going to be amortizing as well for the for

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the business. So you know you're going to be looking

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at every single business expense. Now, many companies, when you

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get started, you're going to possibly have losses, and so

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you may, as a corporation, could have a loss carry

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forward that you will deduct against your profit when you

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start turning a profit, and you may have some loss

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carrybacks as well. It's been provided for we're in previous

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tax laws and then possibly tax losses as well to

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carry back. Then you've got to also look at what

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is the appropriate forms to file so as a corporation,

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So if you are a C corp, you're going to

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file on eleven twenty if you have made the election

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to be taxed as an escorp. Now many small businesses

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that go in and file with their state and become incorporated,

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so you may be let's say Taxation Solutions, Inc. You

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would then file a eleven twenty unless you made the

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election to become an escorp is a pass through company,

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which means the net profit is taxed at the ownership level.

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Those who shareholders that are into the business and holding

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shares in the business would be taxed for the net profit,

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not the corporation itself. That does avoid double taxation. Whereas

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if you remain a inc. I say Taxation Solutions, Inc.

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And you found eleven twenty, you would be taxed at

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the corporate level, and then when the company would make

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what we would call distributions it would actually be dividends.

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You would then be taxed again on the dividends that

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is paid out to the shareholders of that corporation. So

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S Corp. Is going to be taxed as an eleven

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twenty s and again it will take all those business

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expenses out of the income that is derived and come

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down to a net profit, and that net profit will

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produce the net income, and then that would be divided

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amongst all the shareholders. So if you had one hundred

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thousand dollars, let's say of net profit and ten shareholders,

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each one would get a K one that would list

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out of about ten thousand dollars of income on a

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K one, and then that would be passed through to

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you as a shareholder, and you would be taxed there

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with the rest of your income, whether it's W two

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or other businesses or so forth. If you were a

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corporation as an eleven twenty you get taxed on that

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four hundred thousand dollars there, and let's say you were

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in the town of twenty percent tax bracket, they would

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pay you twenty thousand in taxes. And then each member,

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if you were doing dividends for the full amount, each

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one of those ten members, if you distributed everything, would

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get a ten ninety nine diib or eight thousand dollars

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a piece, and so then you would be taxed again

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and your tax rate on your personal tax returney. So

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you've really got to look at this whether you want

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to be a the corp or whether you want to

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be a escort, and so there are difficulties in that

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as well as an escort. If you're working in the business,

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you've got to be paid a reasonable salary. You should

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be paid a reasonable salary as well if you're running

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a ink and being taxed at eleven twenty. But that's

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a whole different topic of discussion out there is what

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is a reasonable salary and how should you be paying

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it for each one of these businesses. Now we tell

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you extremely important So whether you're running in this as

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an escort or a C corp, bookkeeping accounting you for

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every dollar that comes into the business and every dollar

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that goes out of the business. Producing good financial statements

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helps you run this business on a sound basis. Also

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establishes you information to know how profitable you are, what's working,

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what's not working, even what are the trends in your business.

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And then providing a balance sheet to go along with

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that would provide you to show you help you show

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cash flows, help you show what assets and maybe depreciation

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that you're going to be taking over the next year

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as well, and so you get a full accounting for

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your business using bookkeeping, whether you use zero accounting software

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or fresh books, any one of those is sometimes really

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good for the business. But using an independent bookkeeper really

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helps you because you don't have to spend the time

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doing the mundane data entry and tracking of income and expenses.

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You have somebody else doing it for you, and so

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it provides a very ideental situation as you're looking to

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track income and expenses for your business and then being

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able to look at friends and so you can sit

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down and look at month to month where you're going.

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And we're going to take a quick break here, and

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when we come back, we're going to talk a little

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bit more about partnerships and how partnerships are taxed and

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what are your options. We'll be right back 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 owe 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, TETs, 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 three zero one zero one

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six or go to Taxationsolutions dot net now for a

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

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for you with war Tax Dog once again.

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Here's your host, Barry G. Faller. Hey, welcome back, getting

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ready to talk about partnerships and how partnerships are taxed. Now,

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partnerships can be a general partnership where you just agree

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to work with somebody else and now our partners and

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you may set up a DBA out there through your

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local office out there for assumed names. Or you could

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possibly be a limited liability company LLC. Now, if you

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are in partnership or have US two members, you are

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now considered to be a partnership. That LLC can file

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taxes many different ways, but you've got to select the

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way you're going to be taxed. And when you're a

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multi member, the IRS is initially automatically going to re

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fond and say you are to file a ten sixty five,

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which is a partnership return. Now you can make the

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election to also file it as a disregarded entity and

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file it as a escort or even as a C corp.

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Those are elections that you make with the irs, not

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within the state. Now, some states will require you to

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file paperwork with them as well to make the election

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within the state to become an escort. And so depending

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on what state you live in, you would have to

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look within that department or revenue whether that filing is

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required or isn't, and how they're going to require you

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to file for your LLC. Now, if you're a single MEMBERC,

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you're automatically going to be considered a disregarded entity and

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you're going to file your taxes on a schedule CE

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with your personal tax return, unless, of course, you make

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the election to be taxed as ES corp or as

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a C corp. So those are elections that are available

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to you as well. But as a multi member partnership,

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you're going to be filing the form ten sixty five. Now,

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this is going to work very similar to the eleven

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twenty s or corporate partnerships out there or corporate returns

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out there. You're going to be again calculating your gross

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income and deducting all the various expenses that go along

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with it. Now, instead of filing on eleven twenty s forms,

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you file on of course, on that ten sixty five,

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and you break everything down very similarly as you would

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es corp. Now, the big difference is you, as a

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member owner of the LLC or a member of the partnership,

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you're not going to be getting payroll. You're not supposed

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to be on the payroll itself to where you're going

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to get a W two or you're going to You're

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not supposed to get a ten ninety nine. You're going

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to get what the IRS puts in there for you

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as a partner. Guaranteed payments. Now, again, this is kind

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of works the same way as a reasonable salary. What

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would you pay somebody else to do your job? Now,

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there's many ways to calculate it. It's a lot of

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times it's sitting down and saying, hey, what do you

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do for the business. So part of your job ads

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00:16:44.480 --> 00:16:48.759
an owner could be being a secretary, being an admin,

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00:16:50.279 --> 00:16:54.519
being a stocker, stock in the shelves, and of course

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00:16:54.639 --> 00:16:59.840
then being the lead partner or major partner or CFO

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00:17:00.279 --> 00:17:04.880
or a CEO, and you can break through compensation down

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into multiple ways. What would you pay a secretary or

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00:17:09.680 --> 00:17:15.839
an admin, or a shelf stocker or a driver. What

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would a CEO in your position or CFO in your

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position get paid as well? And that's kind of the

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way you've got to break down the reasonable salary the

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00:17:25.559 --> 00:17:28.279
same way we're going to break down you know how

238
00:17:28.319 --> 00:17:34.759
you're going to take guaranteed payments. Now, those guaranteed payments

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00:17:36.039 --> 00:17:38.440
are going to go on a K one that comes

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00:17:38.440 --> 00:17:42.400
to you. Those guaranteed payments are also going to be

241
00:17:42.480 --> 00:17:47.279
subject to self employment tax, so the company doesn't pay

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00:17:48.160 --> 00:17:53.119
each portion of Social Security and Medicare. You pay both

243
00:17:53.200 --> 00:17:58.079
halves when the income comes to you on your K one.

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So if we take the example where maybe the net

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00:18:01.640 --> 00:18:04.720
income from the business was one hundred thousand, and let's

246
00:18:04.759 --> 00:18:08.480
say your salary was normally going to be fifty thousand,

247
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that one hundred thousand would be after your salary, So

248
00:18:14.559 --> 00:18:17.559
the one hundred thousand would still be divided amongst all

249
00:18:17.559 --> 00:18:20.759
the shareholders. But you will see a line on your

250
00:18:21.880 --> 00:18:26.079
K one that shows your guaranteed payments being fifty thousand,

251
00:18:26.680 --> 00:18:30.400
that's going to come over to your tax return when

252
00:18:30.440 --> 00:18:35.279
you're filing on your personal tax return, your total income

253
00:18:35.480 --> 00:18:38.920
is going to be one hundred and fifty thousand. It'll

254
00:18:38.960 --> 00:18:41.000
be the fifty thousand, and then your portion of the

255
00:18:41.000 --> 00:18:43.359
one hundred thousand, so another ten thousand. If there were

256
00:18:43.400 --> 00:18:48.799
ten members in there, just like we did for the escort,

257
00:18:49.640 --> 00:18:53.079
and now you've got a total income of sixty or

258
00:18:53.119 --> 00:18:56.759
fifty plus or ten, and that's the way it would work.

259
00:18:56.799 --> 00:18:59.039
If there was only two members, you would have fifty

260
00:18:59.599 --> 00:19:02.200
plus fifty thousand and half of the other one hundred

261
00:19:02.200 --> 00:19:06.359
thousand that was made from the business. Also, depending on

262
00:19:06.400 --> 00:19:10.519
how much you guys were paying, maybe each partner for

263
00:19:10.680 --> 00:19:14.319
guaranteed payments. Maybe you've got a silent partner who doesn't

264
00:19:14.359 --> 00:19:16.559
do much in the business, isn't going to take any

265
00:19:16.599 --> 00:19:22.680
payroll or reasonable salary or guaranteed payments. Then they would

266
00:19:22.680 --> 00:19:26.160
have nothing in the guaranteed payment line, and you wouldn't

267
00:19:26.200 --> 00:19:29.960
be the only one with the guaranteed payments that are

268
00:19:30.000 --> 00:19:34.000
out there. No real neat thing with guaranteed payments. Sometimes

269
00:19:34.000 --> 00:19:37.039
you're getting compensated for the equity you have in the business,

270
00:19:37.680 --> 00:19:41.759
and you may see a silent partner getting some guaranteed

271
00:19:41.799 --> 00:19:46.960
payments for capital. Those are not subject to self employment

272
00:19:47.039 --> 00:19:51.039
taxes at all. It's just a guaranteed payment coming to

273
00:19:51.079 --> 00:19:55.480
them for the capital they have in the business. Maybe

274
00:19:55.480 --> 00:19:57.200
you have it structured a little bit that they're going

275
00:19:57.240 --> 00:19:59.799
to get some reward for putting up capital out there,

276
00:20:00.160 --> 00:20:03.839
over and above what they're going to get from their

277
00:20:04.079 --> 00:20:08.119
equity line. So you can use this in many different

278
00:20:08.160 --> 00:20:14.920
ways to lower the tax burden for the partners of

279
00:20:15.000 --> 00:20:19.000
the partnership and reward the person that's doing the most work.

280
00:20:19.640 --> 00:20:23.160
A lot of times we see in these partnerships that

281
00:20:23.440 --> 00:20:26.559
partners kind of get upset that one person's working more

282
00:20:26.599 --> 00:20:29.920
than the other, one's doing more for the company than

283
00:20:30.000 --> 00:20:33.960
the other one that does. Using these guaranteed payments can

284
00:20:34.240 --> 00:20:39.400
help lower that anxiety sometimes between a partner as well

285
00:20:40.160 --> 00:20:46.400
that it kind of calms things down. A few years back,

286
00:20:46.519 --> 00:20:51.799
we had two partners and one was pretty much in sales.

287
00:20:51.960 --> 00:20:55.359
One was in the finance side of the business and

288
00:20:55.519 --> 00:20:59.119
keeping track of the records. The sales guy kind of

289
00:20:59.240 --> 00:21:01.960
was getting upset because he was making all the money

290
00:21:02.039 --> 00:21:06.119
for the business and the finance guy was a little

291
00:21:06.200 --> 00:21:09.480
upset because he was actually guiding the financial side of

292
00:21:09.519 --> 00:21:11.920
it and trying to keep him on the straight and arrow.

293
00:21:12.799 --> 00:21:15.680
So the way we end up working this out when

294
00:21:15.839 --> 00:21:21.119
was helping them set up a compensation plan where the

295
00:21:21.119 --> 00:21:26.400
sales guy was getting compensated for his sales and then

296
00:21:27.000 --> 00:21:31.000
the finance guy was getting fairly compensated for his role

297
00:21:31.079 --> 00:21:36.799
basically as the cfochief financial officer of the business. And

298
00:21:36.839 --> 00:21:38.960
it was able to calm things down between the two

299
00:21:38.960 --> 00:21:43.799
partners and keep the business growing at a very high rate.

300
00:21:44.000 --> 00:21:49.359
And they were very very successful in running their business

301
00:21:49.400 --> 00:21:53.039
this way and it worked out really really well. Now, again,

302
00:21:53.119 --> 00:21:55.240
what you're going to get from this partnership is going

303
00:21:55.240 --> 00:21:58.400
to be that K one, and again you're going to

304
00:21:58.440 --> 00:22:04.279
be taxed or the net income of the business based

305
00:22:04.319 --> 00:22:07.359
on your percentage of ownership. So if you owned fifty percent,

306
00:22:07.400 --> 00:22:09.240
you're going to get fifty percent of what the net

307
00:22:09.279 --> 00:22:13.319
profit was from the business. Now you're going to be taxed,

308
00:22:13.319 --> 00:22:16.640
whether you're an escort getting a K one or you're

309
00:22:16.680 --> 00:22:20.680
a partnership getting the K one, you're going to be

310
00:22:20.720 --> 00:22:24.200
taxed at the personal level, whether the company distributed all

311
00:22:24.279 --> 00:22:28.519
the profit or not. So if the company netted one

312
00:22:28.559 --> 00:22:32.960
hundred thousand and only distributed maybe thirty thousand out to

313
00:22:33.079 --> 00:22:35.440
all the partners, which means if there were ten of them,

314
00:22:35.440 --> 00:22:39.680
you got three thousand. You're still going to be taxed

315
00:22:39.759 --> 00:22:43.160
on that one hundred thousand divided amongst all the partners.

316
00:22:43.200 --> 00:22:46.720
So there may be a huge difference between what is

317
00:22:46.759 --> 00:22:52.519
distributed versus what has been taxed. So just because you

318
00:22:52.599 --> 00:22:56.799
didn't receive the money doesn't mean you're going to be

319
00:22:57.039 --> 00:23:01.920
taxed for anything less than what K one the net profit,

320
00:23:02.279 --> 00:23:07.599
your portion of the business income is, and that goes

321
00:23:07.640 --> 00:23:13.319
for both the escort and a partnership that is passing

322
00:23:13.319 --> 00:23:16.880
out AK one to each of the owners of the

323
00:23:16.920 --> 00:23:21.480
business now at eleven twenty is they're going to pay

324
00:23:21.519 --> 00:23:23.759
its own tax at the corporate level, and then you

325
00:23:23.839 --> 00:23:27.319
will only pay the tax on what is a dividend

326
00:23:27.799 --> 00:23:31.799
to you or payroll to you. So that is how

327
00:23:31.880 --> 00:23:34.920
the taxes are going to be passed through to you

328
00:23:35.640 --> 00:23:39.240
as an owner of one of those two entities. We're

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going to take a short break when we come back.

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One of my most favorite topics and we get the

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00:23:43.640 --> 00:23:47.759
most questions from is estimated taxes. Who, what, why, when

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00:23:47.880 --> 00:23:50.920
and where should I pay? These taxes to We'll be

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00:23:51.000 --> 00:23:52.079
right back after this.

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

335
00:23:57.920 --> 00:24:02.279
stand by as Barry Chief'll be right back with tax.

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00:24:02.039 --> 00:24:02.640
Talk for you.

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00:24:05.680 --> 00:24:08.759
As an owner operator, you already spend too much time

338
00:24:08.799 --> 00:24:12.599
away from your family. Trucker Tax Tools handles all your

339
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bookkeeping and taxes. No matter what level trucker you are,

340
00:24:16.079 --> 00:24:19.279
life on the road can be taxing, but that doesn't

341
00:24:19.319 --> 00:24:22.680
mean that your wallet or time with your family should suffer.

342
00:24:23.200 --> 00:24:27.160
Trucker Tax Tools makes your life run smoothly. Go to

343
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truckertax tools dot com for a free guide that will

344
00:24:30.400 --> 00:24:33.519
give you the tools to never worry.

345
00:24:33.240 --> 00:24:34.519
About your taxes again.

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00:24:34.880 --> 00:24:38.680
Call Trucker Tax Tools eight seven seven nine six y

347
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six two four seven seven or go to Trucker tax

348
00:24:42.920 --> 00:24:46.759
Tools dot com now and let the experts keep you trucking.

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00:24:49.880 --> 00:24:52.680
Let's get back to tax stock for you. With war

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00:24:52.880 --> 00:24:57.079
tax Stock once again, here's your host, Barry G.

351
00:24:57.319 --> 00:24:57.680
Fowler.

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00:25:00.559 --> 00:25:03.359
Hey, welcome back. I want to welcome a lot of

353
00:25:03.359 --> 00:25:06.480
our trucker friends out there that are joining us on

354
00:25:06.559 --> 00:25:10.839
the radio program today or listening to us here on podcasts.

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00:25:11.279 --> 00:25:14.000
Matter of fact, you can connect with us at tax

356
00:25:14.400 --> 00:25:18.799
tax Talk for you dot Com and get to our podcasts.

357
00:25:19.039 --> 00:25:22.680
We're also going to We're also on iHeart and Odyssey.

358
00:25:23.400 --> 00:25:27.319
You can find our podcasts there as well. So if

359
00:25:27.359 --> 00:25:30.119
you're a trucker and you're out on the road, you know, hey,

360
00:25:30.200 --> 00:25:34.640
connect with us there. Stay up to date. We write

361
00:25:34.680 --> 00:25:41.160
for a great magazine for truckers within Owner Operators Independent

362
00:25:41.240 --> 00:25:47.319
Drivers Association o i D A Landline magazine. We wrote

363
00:25:47.319 --> 00:25:50.279
a great article a few months back about estimated taxes.

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00:25:51.400 --> 00:25:56.880
We're always keeping truckers up to date on what's happening

365
00:25:57.640 --> 00:26:01.559
with taxes for them. We've written an article about tax

366
00:26:01.599 --> 00:26:06.559
planning of course, estimated taxes, corporate taxes. We've got some

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00:26:06.599 --> 00:26:11.839
great articles coming up as well for you a trucker

368
00:26:12.079 --> 00:26:16.000
out there specifically, but even if you're not a trucker,

369
00:26:16.039 --> 00:26:18.039
these are some great articles. So check it out at

370
00:26:18.119 --> 00:26:22.799
Landline Magazine Landline Media and you can see some of

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00:26:22.839 --> 00:26:25.559
the articles that are out there. That's great for self

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00:26:25.599 --> 00:26:30.119
employed individuals as well. But we're talking about estimated taxes now.

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We get these questions all the time, you know, who, why, when,

374
00:26:33.400 --> 00:26:37.799
why should I pay estimated taxes? Well, estimated taxes. Let's

375
00:26:37.880 --> 00:26:42.039
just be very clear when you're self employed. Estimated taxes

376
00:26:42.039 --> 00:26:44.839
are kind of like those taxes they pull out of

377
00:26:44.880 --> 00:26:50.359
a W two employees payroll tech. They're pre paying the taxes.

378
00:26:51.359 --> 00:26:54.279
The nice thing for the irs. When you're pre paying

379
00:26:54.359 --> 00:26:57.799
the taxes, it's almost like you didn't feel it. You

380
00:26:57.799 --> 00:27:00.799
don't notice those taxes after a while coming out of

381
00:27:00.799 --> 00:27:05.279
your check when you're just coming out of maybe you're

382
00:27:05.279 --> 00:27:07.400
coming out of college or something. You get your first

383
00:27:07.480 --> 00:27:09.960
W two job and you go, hey, I'm going to

384
00:27:10.039 --> 00:27:12.200
make you know, forty thousand a year, And the next

385
00:27:12.200 --> 00:27:14.680
thing you know, you're looking at it and going, oh

386
00:27:14.680 --> 00:27:18.680
my god, they took out how much out of my paycheck. Well,

387
00:27:18.680 --> 00:27:23.079
when you're self employed, nobody's paying those taxes in you're

388
00:27:23.119 --> 00:27:26.119
going to feel the pain when you've got to make

389
00:27:26.160 --> 00:27:29.200
those estimated tax payments. And when you first get started

390
00:27:29.200 --> 00:27:32.839
in the business, many people don't tell you, hey, you

391
00:27:33.119 --> 00:27:36.920
need to make estimated tax payments. And so we get

392
00:27:36.920 --> 00:27:39.839
these questions every year. You know a lot of times

393
00:27:40.119 --> 00:27:44.279
with our new clients, do I have to make estimated

394
00:27:44.400 --> 00:27:48.359
tax payments? You know, in the United States system is

395
00:27:48.359 --> 00:27:54.039
extremely pay as you go system. So what it means

396
00:27:54.039 --> 00:27:58.039
for you as the American taxpayer to put it simply,

397
00:27:58.079 --> 00:28:03.039
the IRS wants you to pay asable portion of what

398
00:28:03.160 --> 00:28:09.359
you owe in taxes each year, quarterly throughout the year,

399
00:28:10.720 --> 00:28:14.759
and definitely before the tax deadline of April fifteen. So

400
00:28:14.920 --> 00:28:17.640
anything that you have do, whether you made it in

401
00:28:17.799 --> 00:28:21.400
estimated tax payments or not, has to be paid by

402
00:28:21.400 --> 00:28:26.079
April fifteen or they're going to hit you with penalties. Now, again,

403
00:28:26.119 --> 00:28:29.200
as a W two employee, all that's being withheld, so

404
00:28:29.200 --> 00:28:34.799
social Security, Medicare, federal income tax, state income tax is

405
00:28:34.920 --> 00:28:39.559
all withheld from your check. So you now as self employed,

406
00:28:40.079 --> 00:28:45.200
have to do the same thing. Those employment taxes are

407
00:28:45.960 --> 00:28:49.440
meant to make sure that you've had enough money pulled

408
00:28:49.440 --> 00:28:52.279
out of your check to pay your taxes, and so

409
00:28:52.400 --> 00:28:57.079
the IRS has set that system up. And the real

410
00:28:57.200 --> 00:28:59.799
funny part I always find is that if we all

411
00:28:59.839 --> 00:29:03.799
had to pay our taxes in like estimated taxes, nobody,

412
00:29:05.200 --> 00:29:11.039
nobody would love anything about taxes whatsoever and would realize

413
00:29:11.039 --> 00:29:15.960
that everybody is over taxed. Yes, the government needs money

414
00:29:16.000 --> 00:29:21.480
to run, but when they're taking money and giving places

415
00:29:21.599 --> 00:29:25.039
and continuing to tax you and run into debt, debt

416
00:29:25.079 --> 00:29:28.480
that you and I couldn't have, you could see what

417
00:29:28.559 --> 00:29:31.160
the issue is out there. And so you can see

418
00:29:31.200 --> 00:29:36.240
where people that are self employed don't really enjoy making

419
00:29:36.319 --> 00:29:40.119
these estimated tax payments. And then sometimes it's really hard.

420
00:29:40.680 --> 00:29:45.240
But you as a solo prider, as a partner of

421
00:29:45.279 --> 00:29:51.759
a partnership, as a s corporation shareholder, you generally have

422
00:29:51.880 --> 00:29:54.759
to make these estimated tax payments if you expected to

423
00:29:54.799 --> 00:29:58.960
own more than one thousand dollars when your return is

424
00:29:59.359 --> 00:30:03.400
typically now, they really don't mean ode, but they really

425
00:30:03.440 --> 00:30:05.720
mean is the tax is going to be a thousand

426
00:30:05.839 --> 00:30:10.119
or more. Now, when you're figuring out your estimated taxes,

427
00:30:10.640 --> 00:30:15.440
there are multiple ways of doing this. The first way

428
00:30:15.799 --> 00:30:21.079
is looking at your twenty twenty three tax return and

429
00:30:21.160 --> 00:30:25.279
what was the tax, And so we'll start with the tax,

430
00:30:25.359 --> 00:30:27.480
and we're going to start Let's say the tax was

431
00:30:27.519 --> 00:30:31.200
twenty thousand. Let's say your husband and wife are on

432
00:30:31.400 --> 00:30:35.240
W two and they're going to have ten thousand dollars

433
00:30:35.240 --> 00:30:38.359
with hell for Federal income tax from their W two.

434
00:30:39.279 --> 00:30:42.480
You now have ten thousand dollars that you should be

435
00:30:42.519 --> 00:30:46.640
paying in estimated taxes. That's the difference between the two

436
00:30:47.720 --> 00:30:51.599
that can be divided up over quarters, and so you pay,

437
00:30:51.720 --> 00:30:58.920
you know, basically April fifteenth, June fifteenth, September fifteenth, January fifteenth. Yes,

438
00:30:58.960 --> 00:31:02.480
it doesn't sound like we're quarters to anybody, but it

439
00:31:02.559 --> 00:31:07.079
is the IRs' estimated tax payments system when they expect

440
00:31:07.400 --> 00:31:12.720
those payments to be made. So that's going to be

441
00:31:12.920 --> 00:31:17.039
a quick, easy method out there that you would go

442
00:31:17.119 --> 00:31:20.799
through and file it. Now, the IRS has other requirements.

443
00:31:21.039 --> 00:31:23.119
We're going to kind of walk through some of those

444
00:31:23.200 --> 00:31:30.200
here as well, but that's a quick cursory way of

445
00:31:30.319 --> 00:31:34.480
looking at it. Now you can also go to the

446
00:31:34.880 --> 00:31:39.279
actual method. So how do you actually earn your money?

447
00:31:39.319 --> 00:31:44.039
Your net income? So some people may have a cyplical

448
00:31:44.200 --> 00:31:47.279
business and that the first part of the year they

449
00:31:47.279 --> 00:31:49.200
don't make very much money, so they don't have to

450
00:31:49.200 --> 00:31:51.960
pay maybe they don't do anything but break even, or

451
00:31:52.000 --> 00:31:55.359
maybe they lose money, so they wouldn't pay any estimated

452
00:31:55.400 --> 00:31:59.680
tax with that first quarterly estimated tax payment. And maybe

453
00:31:59.720 --> 00:32:03.799
this at one they don't make very much, but the

454
00:32:03.839 --> 00:32:06.519
second and third or third and fourth quarter they make

455
00:32:06.559 --> 00:32:09.599
a lot of money. Then they will pay most of

456
00:32:09.640 --> 00:32:13.880
their estimated taxes towards the end of the year. Maybe

457
00:32:14.839 --> 00:32:17.799
you're an escort. Now see this is why we tell

458
00:32:17.880 --> 00:32:20.039
you a lot of times to consult a good tax

459
00:32:20.079 --> 00:32:25.319
professional because you want to design the program around how

460
00:32:25.319 --> 00:32:27.480
you're making your money, or how you can pay it in,

461
00:32:27.839 --> 00:32:32.960
or maybe the best way of paying the taxes. So

462
00:32:33.039 --> 00:32:34.599
now maybe you're an escort and you've got to have

463
00:32:34.680 --> 00:32:38.799
a reasonable salary, right, Well, if you do a bonus

464
00:32:38.839 --> 00:32:42.400
in December and pay it all towards gior federal taxes,

465
00:32:43.319 --> 00:32:44.920
you don't have to pay it all throughout the year.

466
00:32:45.000 --> 00:32:48.519
Is considered to be paid equally each month throughout the year,

467
00:32:48.720 --> 00:32:52.799
and you can avoid maybe the estimated tax payments out there.

468
00:32:54.000 --> 00:32:58.400
So there's a lot of techniques in doing this. Now,

469
00:32:58.880 --> 00:33:03.240
there's other formulas in the estimated taxes. There's one where

470
00:33:03.400 --> 00:33:07.599
it's fairly straightforward. You either need to pay ninety percent

471
00:33:07.799 --> 00:33:11.720
of the current years tax or one hundred percent of

472
00:33:11.759 --> 00:33:16.559
the prior's taxes, whichever is less. So if your annual

473
00:33:16.559 --> 00:33:19.519
income is above one hundred and fifty thousand, then your

474
00:33:19.640 --> 00:33:22.039
second option is to pay one hundred and ten percent,

475
00:33:22.200 --> 00:33:26.839
not one hundred percent of the prior's tax. We get

476
00:33:26.880 --> 00:33:29.559
a little complicated sometimes when we start sitting down and

477
00:33:29.599 --> 00:33:35.640
looking at what these estimated tax payments are. So you've

478
00:33:35.680 --> 00:33:38.480
got to sit down and work with a tax professional

479
00:33:38.599 --> 00:33:41.839
to make sure that you're doing this right to avoid

480
00:33:41.880 --> 00:33:44.799
some of the tax penalties that are out there. And

481
00:33:44.839 --> 00:33:46.319
we're going to talk a little bit more about the

482
00:33:46.319 --> 00:33:51.680
calculating estimated tax payments, estimated tax penalties and what do

483
00:33:51.759 --> 00:33:56.039
you do if last year you didn't pay your taxes

484
00:33:56.640 --> 00:33:58.599
and now you've got to do both pay the taxes

485
00:33:58.640 --> 00:34:06.559
and estimates as well. That's going to get complicated throughout

486
00:34:07.400 --> 00:34:15.159
the year as you're addressing your estimated taxes in making

487
00:34:15.239 --> 00:34:19.000
sure that you're doing things right. I kind of jumped

488
00:34:19.000 --> 00:34:23.199
ahead of where we're at in time, So we're gonna

489
00:34:23.360 --> 00:34:25.920
hopefully take a quick break right here and we'll be

490
00:34:26.039 --> 00:34:27.000
right back after this.

491
00:34:29.159 --> 00:34:32.800
We have only scratched the surface of today's show. Please

492
00:34:32.880 --> 00:34:36.360
stand by as Barry GEF Fowler will be right back with.

493
00:34:36.559 --> 00:34:37.679
Tax talk for you.

494
00:34:40.360 --> 00:34:43.719
As an owner operator, you already spend too much time

495
00:34:43.760 --> 00:34:47.960
away from your family. Stop spending time doing paperwork. Go

496
00:34:48.039 --> 00:34:52.320
to trucker tex tools dot com a solution filled specifically

497
00:34:52.360 --> 00:34:58.440
for truckers. Trucker taxtools dot com makes your life run smoothly.

498
00:35:00.159 --> 00:35:02.719
Just get back to tax Stock for you with more

499
00:35:02.880 --> 00:35:07.119
tax stock once again, here's your host, Barry G.

500
00:35:07.360 --> 00:35:14.880
Fallum Hey welcome back. I got a great question from

501
00:35:14.960 --> 00:35:19.559
one of our trucking friends out there, Joey. He asked,

502
00:35:19.719 --> 00:35:24.119
where do we pay these estimated taxes and how do

503
00:35:24.159 --> 00:35:27.760
we pay these estimated taxes in? Well, you can use

504
00:35:27.840 --> 00:35:31.239
the forum ten forty e s and send a check

505
00:35:31.280 --> 00:35:36.159
in then if the check claier's then you've got proof

506
00:35:36.199 --> 00:35:39.000
that you made your estimated tax payments. I always tell

507
00:35:39.039 --> 00:35:41.480
people if you're mailing something to the IRS, make sure

508
00:35:41.559 --> 00:35:45.280
you send it to certified mails so that you know

509
00:35:45.320 --> 00:35:49.079
that they've actually received it and they received it timely,

510
00:35:49.440 --> 00:35:55.320
and then it's recorded on your record out there. You

511
00:35:55.360 --> 00:35:58.480
can go online to the IRS dot gov and you

512
00:35:58.519 --> 00:36:03.320
can pay your tomated tax payments right there online, and

513
00:36:03.360 --> 00:36:06.679
then you've got a track record in your bank account

514
00:36:06.920 --> 00:36:10.119
or your credit card. They will charge your fees to

515
00:36:10.159 --> 00:36:12.400
do this, of course, you know most people are charging

516
00:36:12.440 --> 00:36:14.920
a transaction fee. The IRS is going to do the

517
00:36:14.960 --> 00:36:19.519
same thing. But then you know you've got that estimated

518
00:36:19.559 --> 00:36:25.960
tax payment made as well, so you have those options

519
00:36:26.079 --> 00:36:30.159
out there for you, and again to know the IRS

520
00:36:30.199 --> 00:36:32.760
has got it, you're going to see the item cleared

521
00:36:32.800 --> 00:36:37.079
through your bank account, you know, check your bank statement,

522
00:36:37.199 --> 00:36:39.920
check your credit card statement, however you paid it and

523
00:36:40.000 --> 00:36:44.639
make sure that transaction went through. If you're making that

524
00:36:45.440 --> 00:36:49.039
estimated tax payment on let's say April fifteenth, the first

525
00:36:49.039 --> 00:36:52.719
one of every year, make sure they credited to the

526
00:36:52.840 --> 00:36:58.079
right period, the right year, because April fifteenth usually have

527
00:36:58.159 --> 00:37:01.239
two options, and that is to make the estimated tax

528
00:37:01.280 --> 00:37:05.679
payment or pay on the prior year's taxes as well.

529
00:37:07.159 --> 00:37:11.159
We've had people that have messed up and instead of

530
00:37:12.519 --> 00:37:15.440
making the tax payment on the prior year, they doubled

531
00:37:15.519 --> 00:37:18.480
up on their estimated tax payments. And that's kind of

532
00:37:18.519 --> 00:37:20.800
easy to fix. You can call the IRS and ask

533
00:37:20.840 --> 00:37:23.320
them to take that payment and move it to the

534
00:37:23.519 --> 00:37:27.400
prior period and it would get credited the right place.

535
00:37:27.719 --> 00:37:31.360
Even if you messed up, the IRS will do that

536
00:37:31.440 --> 00:37:38.440
as well. The other question we get coming in is

537
00:37:38.840 --> 00:37:42.239
what happens if I don't make the estimated tax payments. Well,

538
00:37:42.239 --> 00:37:46.000
we're going to cover two parts of this. So you're filing,

539
00:37:46.599 --> 00:37:48.719
just got done filing. Let's say you're twenty twenty three

540
00:37:48.760 --> 00:37:52.599
taxes and you owed a bunch of money on those taxes,

541
00:37:52.599 --> 00:37:56.559
but yet you're having trouble making this year's estimated tax payments. Well,

542
00:37:57.039 --> 00:37:59.400
the first thing we're going to tell you is to

543
00:37:59.440 --> 00:38:02.119
pay your estimated tax payments to avoid the little bit

544
00:38:02.159 --> 00:38:04.679
of penalties that they're going to have. Because the IRS

545
00:38:04.719 --> 00:38:10.119
will assess a penalty for not making your estimated tax payment.

546
00:38:10.159 --> 00:38:13.079
They will then assess an interest as well from when

547
00:38:13.119 --> 00:38:18.599
that estimated tax payment should have been made. And what

548
00:38:18.840 --> 00:38:22.239
happens for like twenty twenty three where you're filed right now,

549
00:38:22.920 --> 00:38:26.079
they're already going to charge you appendentalty for not paying

550
00:38:26.119 --> 00:38:28.360
the tax and interest all the way up to the

551
00:38:28.440 --> 00:38:32.199
date that you filed, and then continuing on from there. Well,

552
00:38:32.280 --> 00:38:36.000
let's keep you on hot water. Let's make the estimated

553
00:38:36.039 --> 00:38:40.119
tax payments right now and work on a solution to

554
00:38:41.039 --> 00:38:43.159
either put a payment planned in or maybe an offering

555
00:38:43.199 --> 00:38:47.599
compromise or maybe a non collectible status depending on how

556
00:38:47.639 --> 00:38:51.800
business is going, put some kind of solution in place

557
00:38:52.000 --> 00:38:58.000
to keep the IRS at bay in dealing with your taxes. Now,

558
00:38:58.199 --> 00:39:02.199
we've dealt with many small businesses and many many truckers

559
00:39:02.199 --> 00:39:08.199
out there across the country, and in dealing with them

560
00:39:08.800 --> 00:39:11.639
many times you've started in business, but nobody ever told

561
00:39:11.639 --> 00:39:15.000
you you needed to make estimated tax payments. And that

562
00:39:15.079 --> 00:39:19.239
gets you in trouble. And that's why whether you're working

563
00:39:19.320 --> 00:39:23.039
with somebody like me, working with your Trucker tax tools

564
00:39:23.119 --> 00:39:29.199
dot Com or Taxation Solutions, tax Relief, get advice, ask

565
00:39:29.320 --> 00:39:32.480
them about the estimated tax payments. Now, we're going to

566
00:39:32.480 --> 00:39:37.159
tell you two things you and business should be making them.

567
00:39:37.559 --> 00:39:40.599
You being in business, if last year's net income was

568
00:39:40.719 --> 00:39:44.480
such that you don't have to make them. We're not

569
00:39:44.519 --> 00:39:46.039
going to ask you to make them, but we are

570
00:39:46.079 --> 00:39:49.760
going to tell you to put money aside for next

571
00:39:49.840 --> 00:39:55.000
year's taxes, so you know you use kind of a

572
00:39:55.039 --> 00:39:59.480
good judgment. Twenty to thirty five percent should be set

573
00:39:59.480 --> 00:40:04.159
aside of net income to possibly pay the taxes for

574
00:40:04.880 --> 00:40:08.960
twenty twenty four and have that set aside into an account.

575
00:40:09.079 --> 00:40:11.320
And hey, we tell you might as well earn the

576
00:40:11.360 --> 00:40:13.880
interest on your money. Dave Ramsey will tell you the

577
00:40:13.880 --> 00:40:16.880
same thing. You should be earning the interest on your money.

578
00:40:16.960 --> 00:40:21.000
You should be only paying in the minimum required by

579
00:40:21.119 --> 00:40:25.440
law to the irs and saving the rest because now

580
00:40:25.519 --> 00:40:28.760
you've got the money to continue to make more money

581
00:40:28.760 --> 00:40:31.519
for yourself and not have the money sit there at

582
00:40:31.559 --> 00:40:34.320
the IRS. And they're not going to give you money back.

583
00:40:34.960 --> 00:40:36.920
They're not going to pay you interest on the money

584
00:40:36.920 --> 00:40:39.719
that they have sitting there. They will give you a

585
00:40:39.760 --> 00:40:44.360
refund at your money, but that's all they're going to do. Now.

586
00:40:44.360 --> 00:40:46.159
If it's a year or two down the road that

587
00:40:46.199 --> 00:40:49.079
you actually file your taxes and get that refund, yes

588
00:40:49.119 --> 00:40:51.519
they will pay you interest on that money, but it's

589
00:40:51.559 --> 00:40:54.199
still less than what you would have made if you

590
00:40:54.280 --> 00:40:58.280
were taking it and investing it in yourself. That's out there.

591
00:40:59.360 --> 00:41:05.960
So general guidelines would be taking and setting aside twenty

592
00:41:05.960 --> 00:41:07.920
to thirty five percent, because you're going to remember, if

593
00:41:07.920 --> 00:41:11.239
you're self employed and finally on schedule, see, you're going

594
00:41:11.320 --> 00:41:13.920
to have self employment taxes. If you're a partnership and

595
00:41:14.079 --> 00:41:17.840
have guaranteed payments, you're going to have self employment taxes.

596
00:41:18.679 --> 00:41:22.559
If you are a escort, you're not going to have

597
00:41:23.000 --> 00:41:26.199
the self employment taxes because you will be a w

598
00:41:26.320 --> 00:41:30.719
two way journer for the escort. And so therefore you're

599
00:41:31.639 --> 00:41:33.440
amount you're going to want to set aside it will

600
00:41:33.440 --> 00:41:37.320
be closer to that twenty percent, so that you're holding

601
00:41:37.360 --> 00:41:42.360
the money out there. If the company's not making distributions

602
00:41:42.360 --> 00:41:46.280
to you as an escort or as a partnership, it's

603
00:41:46.280 --> 00:41:47.880
going to be a little bit harder to judge, but

604
00:41:47.960 --> 00:41:51.079
you want to see financial statements from your partnership or escort,

605
00:41:51.880 --> 00:41:54.440
so you would be a little bit more prepared for

606
00:41:54.599 --> 00:41:59.639
what's going to hit you as a owner of the business,

607
00:42:00.760 --> 00:42:06.400
and so you need to keep those things in mind

608
00:42:07.360 --> 00:42:12.559
now in making estimated tax payments. People ask this all

609
00:42:12.599 --> 00:42:15.320
the time, is can I pay all of them once

610
00:42:16.119 --> 00:42:19.360
if it's in the first quarter. Yes, we don't recommend it.

611
00:42:19.440 --> 00:42:21.960
We've met recommend that you break it down and pay

612
00:42:22.000 --> 00:42:24.960
it over the four quarters that are there, but yes

613
00:42:25.000 --> 00:42:29.280
you can. You can also roll over your refund, So

614
00:42:29.360 --> 00:42:31.480
if you file your twenty twenty three tax return and

615
00:42:31.599 --> 00:42:33.480
get a refund coming back, you can roll it over

616
00:42:33.559 --> 00:42:37.559
into your estimates for twenty twenty four, and it would

617
00:42:37.800 --> 00:42:40.559
you could have it count for each of the vouchers

618
00:42:40.679 --> 00:42:43.320
or estimated tax payments you got to make throughout the

619
00:42:43.400 --> 00:42:48.719
year until it's used. A lot of our bigger clients

620
00:42:48.719 --> 00:42:50.920
that we deal with, they may have a large refund

621
00:42:50.960 --> 00:42:54.880
and they will have it credited towards all of twenty

622
00:42:54.920 --> 00:42:59.480
twenty four to make sure that they've got everything covered.

623
00:42:59.679 --> 00:43:02.800
But well's take their place of any estimated tax payments

624
00:43:02.880 --> 00:43:06.719
they would have going out there. So they do do that,

625
00:43:06.840 --> 00:43:09.119
and that's available to you no matter how big the

626
00:43:09.159 --> 00:43:13.239
refund is. But your tax prepayer should also be sitting

627
00:43:13.280 --> 00:43:19.920
down and giving you advice on what should be done. Now,

628
00:43:21.079 --> 00:43:25.119
can you avoid making estimated tax payments? Absolutely? There is

629
00:43:25.159 --> 00:43:28.119
a way. If your spouse is employed, they could pay

630
00:43:28.199 --> 00:43:33.760
more in federal income tax or state income tax from

631
00:43:33.800 --> 00:43:36.920
their W two job, so you can increase their withholding.

632
00:43:37.840 --> 00:43:41.519
So if you need an extra ten thousand or let's

633
00:43:41.519 --> 00:43:44.000
say twelve thousand a year, you have an extra thousand

634
00:43:44.039 --> 00:43:48.119
come out of their W two payroll every month, and

635
00:43:49.960 --> 00:43:53.760
then you could avoid paying those estimated tax payments as well.

636
00:43:56.760 --> 00:43:59.480
If you didn't owe anything or no tax, you wouldn't

637
00:43:59.519 --> 00:44:03.440
have to make any estimated tax payments for this year.

638
00:44:04.760 --> 00:44:09.199
But that being the case, you want to monitor how

639
00:44:09.280 --> 00:44:15.000
well you're doing through your financial statements to make sure

640
00:44:15.119 --> 00:44:20.320
that what is going to be the net income for

641
00:44:20.559 --> 00:44:22.760
you is going to pass through. So if your schedule

642
00:44:22.760 --> 00:44:25.400
to see you still want financial statements so you can

643
00:44:25.440 --> 00:44:27.960
see where you're at and how you're doing and how

644
00:44:28.000 --> 00:44:32.679
your business is doing, and then determine how much tax

645
00:44:32.679 --> 00:44:34.960
you're going to be paying as well. So you sit

646
00:44:35.000 --> 00:44:38.800
down and do tax planning, something we're doing for a

647
00:44:38.840 --> 00:44:42.280
lot of the truckers that work with us at Trucker

648
00:44:42.320 --> 00:44:47.039
tax tools dot Com. We're sitting down and doing tax

649
00:44:47.079 --> 00:44:52.000
planning for them right now. Yes, we just finished tax season.

650
00:44:52.039 --> 00:44:56.119
We just finished filing taxes here for October fifteenth, and

651
00:44:56.159 --> 00:45:00.000
we roll right into continuing tax planning to where we're

652
00:45:00.079 --> 00:45:03.920
sitting down and doing an estimate of how much you're

653
00:45:03.960 --> 00:45:07.480
going to owe as an owner operator, whether you are

654
00:45:07.679 --> 00:45:14.519
again S Corps, C Corp, LC or partnership or sol proprietor.

655
00:45:15.719 --> 00:45:19.159
We sit down and look at how much that you're

656
00:45:19.280 --> 00:45:24.199
going to ow the irs based on where you're at today,

657
00:45:24.320 --> 00:45:28.360
taken into account everything from all your income and expenses.

658
00:45:29.639 --> 00:45:32.119
We enjoy doing this because all of our clients that

659
00:45:32.159 --> 00:45:36.159
are bookkeeping clients of ours expect this and expect to

660
00:45:36.159 --> 00:45:39.320
be able to sit down and do these things and

661
00:45:39.400 --> 00:45:42.159
talk about how much money they're going to owe, and

662
00:45:42.199 --> 00:45:45.239
then we can run our proprietary software that we've got,

663
00:45:46.119 --> 00:45:51.400
does our tax minimizer, profit maximizer, and what's going to

664
00:45:51.400 --> 00:45:56.119
be best for them in the way we do things.

665
00:45:56.159 --> 00:45:59.239
And once we get to that, we make sure that

666
00:45:59.239 --> 00:46:02.480
they've paid it in enough in their estimates that they've

667
00:46:02.599 --> 00:46:05.519
set enough money aside to pay the tax that possibly

668
00:46:05.559 --> 00:46:09.360
could be due or get. The good news is they're

669
00:46:09.400 --> 00:46:11.440
going to pay less than what they think they're going

670
00:46:11.480 --> 00:46:14.119
to owe or less than what they owe the previous year.

671
00:46:15.079 --> 00:46:17.199
We also be able to come back and say, hey,

672
00:46:17.239 --> 00:46:20.760
some most truckers out there and a lot of self

673
00:46:20.760 --> 00:46:25.760
employed people don't ever think about is retirement. How much

674
00:46:25.800 --> 00:46:29.199
money they should be putting away for retirement and when

675
00:46:29.199 --> 00:46:32.239
they're going to be getting out of business. Whether you're

676
00:46:32.280 --> 00:46:35.599
an owner operator, whether you're self employed, and let's say

677
00:46:35.599 --> 00:46:41.719
even construction, whatever you're doing, you need to know what

678
00:46:41.760 --> 00:46:44.280
the end game is going to be and how you're

679
00:46:44.280 --> 00:46:46.440
going to be able to retire and set money aside.

680
00:46:46.440 --> 00:46:49.800
And people don't talk about that enough. These days. They're

681
00:46:49.800 --> 00:46:51.880
going to talk about taxes, they're going to talk about,

682
00:46:51.960 --> 00:46:55.519
you know, tax forgiveness, They're going to talk about how

683
00:46:55.559 --> 00:46:58.239
to make a lot of profit, but how to set

684
00:46:58.239 --> 00:47:01.840
it aside for your future as well. And those are

685
00:47:01.920 --> 00:47:03.719
some of the things that we get to talk about

686
00:47:04.519 --> 00:47:07.719
when we're sitting down and doing tax planning. How should

687
00:47:07.719 --> 00:47:11.039
you depreciate an asset? You know, do I take it?

688
00:47:11.719 --> 00:47:14.480
Section one Saturday nine. Do I take a bonus appreciation?

689
00:47:14.679 --> 00:47:17.760
Do I take it over five years, three years, what

690
00:47:17.960 --> 00:47:21.960
period is it? But that's the importance of tax planning,

691
00:47:22.679 --> 00:47:27.079
and that tax planning comes into making these estimated tax

692
00:47:27.119 --> 00:47:31.719
payments and making sure that you've paid enough in and

693
00:47:31.840 --> 00:47:34.880
not too much in and maybe have enough money set

694
00:47:34.920 --> 00:47:40.440
aside for those taxes. Now, make sure that when you're

695
00:47:40.440 --> 00:47:43.280
doing estimated taxes, you've got to take a look at

696
00:47:43.280 --> 00:47:45.639
what state you live in. If you live in the

697
00:47:45.639 --> 00:47:47.800
Great State of Taxes, you know, we're not going to

698
00:47:47.840 --> 00:47:51.079
have estimated taxes because we don't pay state income tax.

699
00:47:51.920 --> 00:47:54.400
But your income may be high enough you might be

700
00:47:54.480 --> 00:47:58.000
paying franchise tax. Do we maybe slow down, you know,

701
00:47:58.840 --> 00:48:01.639
income that you don't go over to where you'd be

702
00:48:01.760 --> 00:48:04.559
having to pay that tax. If you live in a

703
00:48:04.599 --> 00:48:09.880
state like Pennsylvania or Ohio, are you paying what are

704
00:48:09.920 --> 00:48:13.559
your taxes that you're paying into the state, And you've

705
00:48:13.559 --> 00:48:18.480
got to take into account estimated taxes for that as well,

706
00:48:18.559 --> 00:48:22.320
such as even New York or New Jersey, some highly

707
00:48:22.400 --> 00:48:27.239
taxed states California, of what taxes you're going to have

708
00:48:27.320 --> 00:48:30.559
to pay, and you need that into the competition as well.

709
00:48:32.079 --> 00:48:40.880
That's out there now. Every individual situation is different. Get

710
00:48:40.880 --> 00:48:45.159
a good tax advisor, Get a good enrolled agent, get

711
00:48:45.199 --> 00:48:48.880
a good bookkeeper. Whether you use us here at truckertax

712
00:48:48.880 --> 00:48:52.719
tools dot com or whether you use somebody else, you

713
00:48:52.840 --> 00:48:55.960
need somebody to be able to bounce ideas off of

714
00:48:56.639 --> 00:49:02.119
to talk about the tax aspect of your business. You know,

715
00:49:02.440 --> 00:49:07.519
is being a corporation c corps corp partnership right for you?

716
00:49:08.760 --> 00:49:14.480
That takes tax planning, that takes a little knowledge of

717
00:49:14.559 --> 00:49:19.000
your business, a little knowledge of what's happening in your life.

718
00:49:19.840 --> 00:49:23.480
How can we change things to make things better for

719
00:49:23.639 --> 00:49:28.079
you in helping you down the road. Now, next week

720
00:49:28.159 --> 00:49:33.159
we're going to talk about the IRS and your tax debt.

721
00:49:33.239 --> 00:49:36.159
So make sure you're here next week to talk about

722
00:49:36.719 --> 00:49:39.519
your tax debt? What can be done? How can you

723
00:49:39.639 --> 00:49:42.079
do it? Can you do it alone? Do you need help?

724
00:49:42.639 --> 00:49:45.159
Where do we need to go from there? Hey, look

725
00:49:45.199 --> 00:49:48.440
forward to seeing you next week. Connect with us at

726
00:49:48.480 --> 00:49:53.920
tax talkforu dot com or out there on Facebook and

727
00:49:54.239 --> 00:49:58.199
iHeart Odyssey. You can find our podcasts many places. I

728
00:49:58.280 --> 00:50:01.920
look forward you being here every Monday at ten o'clock

729
00:50:02.000 --> 00:50:06.360
Eastern time. Join us at tax talkfu dot com. Thank

730
00:50:06.400 --> 00:50:07.199
you have a great week.

731
00:50:08.840 --> 00:50:12.000
Are you an individual or business that wants to understand

732
00:50:12.079 --> 00:50:15.440
taxes and how they affect you. Are you looking for

733
00:50:15.519 --> 00:50:20.920
specific tax advice for self employed business owners and truckers.

734
00:50:21.480 --> 00:50:25.559
Are you behind on taxes and your bookkeeping? Are you

735
00:50:25.639 --> 00:50:28.639
dealing with the irs and ready to have some relief,

736
00:50:29.440 --> 00:50:33.280
Then you need Tax Talk for You, hosted by tax

737
00:50:33.360 --> 00:50:35.519
and trucker expert Barry G.

738
00:50:35.800 --> 00:50:36.679
Fowler EA.

739
00:50:37.079 --> 00:50:40.880
Tune in ten am Eastern Time every Monday right here

740
00:50:40.920 --> 00:50:44.760
on W FOURCY Radio and Talk for TV. Don't forget

741
00:50:44.800 --> 00:50:49.440
to check this and past episodes at tax talkforyu dot com.

742
00:50:49.920 --> 00:50:55.480
See you next week at W fourcy dot com