Nov. 10, 2025

Tax Planning as a Business Owner

Tax Planning as a Business Owner
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Season 3

TaxTalk4U.com Trucking Tax Planning Business Owner Reduce taxes as Owner Operators, Business Owners. Tax Planning, how tax planning effects your business. How to minimize taxes for business. Section 179, Sec 199A Getting all your deductions that save you money on taxes. IRA, 401k, SEP retirement plans. IRS. Truck to Success for Truckers. How to save taxes work for independent owner-operators. Truck Driver Per diem OOIDA Truck to Success Cost per mile. Thank you to our Veterans!

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 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.

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Fowler EA brings you tax talk for you right here

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on W four CY Radio and Talk for TV. As

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an enrolled agent and a national leader in tax resolution

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as well as Trucker bookkeeping and tax planning. With over

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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 host, Barry ger.

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Hey. Welcome, and it's another great Monday leading into a

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great week. God bless you to be here and be

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up do something important and exciting and fun for the

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family this week. Hey, this week we honor veterans, and

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tomorrow is Veterans Day Day that honors all that have

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served in the United States Armed Forces in times of

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war and in times of peace. It's actually the day

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if you don't do it any other day of the year.

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It's the day to thank all veterans for their service,

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acknowledge the sacrifices they have made, their families have made,

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and the contributions they've made to this great country, and

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then also show appreciation for the courage and dedication. I mean,

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this country would not be the country it is without

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our veterans. And you know that day, Veterans Day, tomorrow

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is the day to honor them above all. You know what,

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we recognize all veterans. It's dedicated to everyone who has

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served in the United States military, but not just those

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that fought in some specific war. If you've served, thank you,

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Thank you for your service to this country. We could

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not have the freedoms we have today without our great

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military and Armed forces. Well that being said, let's talk

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about taxes. Now. We get the privilege of living in

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this great country. We got to have the privilege of

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paying taxes, right, Oh, my Atlanta. We got to do

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some planning and today. What we're going to be talking

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about above all for people is tax strategies. As a

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business owner, you own your business. Now it doesn't matter

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to me. You know, whether you're reporting on the Schedule

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C as a business owner, you're reporting as an escort

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on eleven twenty s, you're reporting as a partnership on

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a ten sixty five. You've got to have strategies. You've

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got to have ways to reduce the taxes that you

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are going to pay for your family. Now, if you're

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reporting on one of those three forms, you are getting

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taxed at the bottom line on your personal tax return,

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so net income Schedule C bottom line of your net income. Right,

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there's tax for Social Security and Medicare and federal income taxes.

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After a few adjustments eleven twenty and ten sixty five,

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you're both going to get k ones from those entities.

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So being taxed as an escort, you get it passed

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through and you get tax for federal income tax on

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there and reasonable wages as a W two and then

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ten sixty five you're going to get guaranteed payments and

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an income come from the business and be taxed there. Now,

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if you are a corporation and tax as a c

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court and you didn't make the election for escorp, and

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the corporation pays the corporate tax. If you get distributions,

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you get ten ninety nine dividends because they don't have distributions,

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it's dividends. And then you also have w two wages. Now,

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where does tax planning begin. Well, tax planning should have begin.

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It's early on the beginning of the year. Tax planning

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should have begun with starting keeping, taking an account of

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all transactions that happen for your business. Now I tell you,

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if you are in business, make sure you have a

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separate bank account just for the business. Don't run anything

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personal through its matter of fact, you take your distributions

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or you take your wages, and those go to your

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personal account, and then you pay all your personal expenses

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out of your personal account, not out of the business.

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No comlank. Now you've got good bookkeeping, meaning you've got

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not just an income statement or cash flow statement, but

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you've actually got a balance sheet in an income statement.

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Start looking there, doing a comparison, and hopefully you had

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good bookkeeping last year, or if you're new in business,

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this is a great practice to go through and start

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analyzing what's happening in your business. Look at your profit

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and loss. Does it have all your expenses that you

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expected to be there? Even the little things. You know,

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if you have a telephone or cell phone service to

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the business, is it recorded there? You know, are you

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getting all your office supplies and everything else recorded there?

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Maybe you're buying things out of your personal account because

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you had expenses that you didn't have your have a

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credit card or something. Did you account for all those expenses?

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So every expense matters, So when we talk about strategies,

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we want to make sure you're capturing every expense possible.

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Look at your balance sheet. Now, your balance sheet, yes,

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is going to have what's in your bank account reconcile amount.

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It's going to have maybe your accounts receivable, who owes

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you money, accounts payable, who owes you owe money? To

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your loans. You may have loans that are outstanding that

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you owe people or maybe somebody owes you money. You're

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going to have assets you bought equipment, property, land, and

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building this year that should be a kind of fort

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on the balance sheet as a fixed asset. And if

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you're running in comparison from one year to the next,

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you'll be able to see the changes and the differences

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right there on the balance sheet. Now, when you start

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seeing those things, we're going to be able to explain

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more how this is going to benefit you as a

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business owner looking at how to save money on taxes,

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because realistically, your tax strategy is to get you into

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a better tax bracket, lower the tax rates down by

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strategies to keep the taxes to the lowest amount allowed

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by law. So why do we do these strategies? I mean,

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who really wants to pay thirty seven percent income tax

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plus maybe you know three point eighty percent and net

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investment tax. Nobody really wants to do it. I don't

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care how much money. People don't want to give money

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to the federal government. Or if you're in a state

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that's chargeding you, you don't want to give money to

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the state either. I mean we all see that neither

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the federal or state governments know how to spend money.

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Actually they know how to spend money. They waste money,

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but they don't know how to be reasonable. They don't

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know how to have a good budget, they don't know

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how to break even in their revenues. They're just rather

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just haphazardly than, you know, save money. They're talking about

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saving money and tax rates. You know, I got into

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a disagreement with one of our county commissioners. They were

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promoting an extra one percent sales tax in our area.

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Because in the area that I live in, it's not

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in a city, so it's unincorporated area. We pay a

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lower sales tax rate than other people. Our county commissioner

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decided he wanted to be able to add this one

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percent in and he was supporting it. And he says, well,

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you know, it's not really a tax increase. You're already

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getting charged. No, I wasn't getting charged. I don't want

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to pay an extra one percent in tax. Nobody wants

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to pay more in tax. Yes, this went down in defeat.

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It said right there on the ballot that it was

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a tax increase, but he said it wasn't. It is

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so you know, little fun things like that. Nobody wants

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to pay more in tax. If you had the opportunity

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to lower your tax rate, you would, wouldn't you. I'd

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be the first one to raise my hand and say yes,

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I want a lower tax rate. I am not going

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to raise my hand and say increase my taxes just

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because I want to pay more. You want to find

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ways all the time to pay less money in taxes.

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So again we started looking at your income statement, your

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profit and laws, your balance sheet and making sure that

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you have every deduction for your business that's allowed by law.

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You know, is it ordinary necessary business expenses? Are they

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classifying the money that you are paying for marketing? In marketing?

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So maybe you're contributing and doing something at the church

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and it's advertising, you're putting banners up, you're doing other

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things to get your name out. Well, it does more

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for you as a marketing expense than it does as

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a charitable contribution. Yes, it feels nice as a charitable contribution,

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but the tax deduction is better if it is a

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marketing expense. So if you get some marketing out of it,

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you can classify it as marketing expense versus charitable contributions. Now,

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well you've got to look at all the different ideas

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here on tax planning strategies for your business. So whether

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you're an owner operator, whether you're in retail, whether you're

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in marketing and consultant, whatever, you've got to do planning

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for your business. We're going to take a quick break,

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and when we come back from this break, we're going

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to continue talking about tax planning for your business. We'll

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do that right after that.

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

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stand by as Barry G. Feller will be right back

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with tax talk for you.

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If you owe the.

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

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at it alone. Called Taxation Solutions Tax Relief at eight

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eight eight nine three zero one zero one six. We

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are your solution for IRS debts, audits, back taxes, garnishments,

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

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

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let the IRS walk all over you. Stop the IRS

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now call eight eight eight nine three zero one zero

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one six or go to Taxation Solutions dot net now

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for a free no obligation consultation. Let's get back to

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tax talk for you with more tax talk once again,

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here's your host, Barry G.

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Fallon.

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Hey, I promise one of my friends who reached out

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on me and he says, you know, I heard you

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thanking veterans for Veterans Day and everything. Can you mention

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me out there? I said, man everybody's going to have

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their fifteen minutes of fame, so everybody needs to hear

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you know, Michael, I appreciate your service, you know, for

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this country and your friends that served with you as well.

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Thank you for your service, and you know, hope you

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continue listening to us and everything out there. You know,

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it's a day of being thankful and seeing if you

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see a veteran out there, you see somebody that has served,

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or even somebody currently in the military, you know, hey,

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thank them for their service out there. And we're talking

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about business planning and tax planning strategies for twenty twenty

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five for this year. We'll get into some twenty twenty

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six stuff that you can do while you're working on

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twenty twenty five planning. I mean, we've only got less

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than two months left in this year. Can you believe

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how fast this year has gone by? Again, man, you know,

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so implementing strategies now, maybe you didn't think about it

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earlier in the year, you got to think about it now.

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So you know, some of the key strategies we're going

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to be talking about is taking advantage of bonus appreciation

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for asset purchases, maximizing the Qualified Business Income Deduction QBI,

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utilizing business interest expense deductions, and other effective tactics that

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we're going to come through and talk about as well,

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such things as timing of income and expenses, and then

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optimizing maybe your business structure. For twenty twenty six, maximizing

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retirement contributions. We're going to get into that a little

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bit more in depth as we go through, so some

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of the key strategies again for twenty twenty five right now,

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the One Big Beautiful Bill Act of twenty twenty five

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permanently reinstated one hundred percent bonus deppreciation for qualifying property

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placed in service after January nineteen, twenty twenty five. This

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means your business can fully expense the cost of eligible

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equipment in the year purchased. So if you purchase something

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after January nineteen, twenty twenty five, you're going to be

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able to use Section one seventy nine to fully depreciate

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your equipment. Now watch out for this because you know,

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depending on how much equipment you bought, if you're going

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to be fully expensing things at one seventy nine, you

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don't want to take the tax rate down to where

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you're not paying quite anything, because now you might be

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wasting depreciation because the next year you might be back

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up into the much higher tax bracket. So you kind

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of got a waigh how much depreciation you're going to

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use based on your net income and based on your

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tax situation. So we're always looking at that. But the

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maximum deduction limit for Section one seventy nine expensing increased

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to two point five million for property placed in service

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after December thirty one, twenty four, with the phrase phase

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out threshold at four million. Qualified production property. Business can

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also take one hundred percent bonus depreciation for this qualified

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production property placed in service before January one, thirty one

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if construction began after January nineteen twenty five. So there's

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little tweaks in the dates out there, so you kind

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of got to watch and look at the actual rules

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behind everything a when property was placed in service and

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when maybe you started construction as well, like unqualified production property. Now,

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the other good thing that happened in the one big

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beautiful bill that helps you with your tax strategies for

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this year is the Qualified Business Income Deduction QBI. Now,

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if you've been in business, you're probably heard about the

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twenty percent QBI deduction. The Section one ninety nine A,

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the One Big Beautiful Bill made it permanent and that's

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eligible for pass through entities. So this deduction was expanded

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and said a minimum deduction of four hundred dollars and

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as long as you had at least one thousand dollars

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of qualified business income QBI. Yeah, a little bit complicated

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calculation out here that you've got to go through, and

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if you have losses, it complicates things further. Carrying losses

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forward from QBI complicates things. Make sure you're working with

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your tax preparer to know how this QBI deduction is

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going to work and how it's going to work to

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your advantage or how it could affect you in the future.

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Also going forward due to the losses and everything as

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it carries forward. QBI has always been one of these

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nice things when you're making money, but complicated things when

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you've been losing money for a few years and you're

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carrying the QBI losses forward. Also has other complicated factors

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in there, with wages and property and equipment and stuff

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like that. So it's not something that I recommend anybody

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tread lightly through. Make sure you've got to qualify tax

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preprayer and rolled agent like us here at Taxition Solutions

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Trucker Tax Tools, and that you've got the right calculations

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in there for the QBI. Now, I know, you know

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tax software. Oh you know, Hey, don't worry about it.

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Everything is going to be easy. It's still one of

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those things that unless you're carrying it forward from year

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to year and that site aim Software, unless they carry

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it forward for you, most people don't realize and just

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ignore and then they get audited for this QBI problem

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and you've got to go back in and fix it.

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Trust me, the irs is tracking in some way, shape

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or form and they will figure this out. Hey, speaking

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of deductions and CBI and even truckers owner operators out

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00:17:55.240 --> 00:17:59.880
there in small businesses, Trucker tax tools dot Com is

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00:18:00.599 --> 00:18:04.079
the site that you can go to. We help truckers

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00:18:04.079 --> 00:18:09.680
with bookkeeping and taxes. Trucker Tax Tools is geared strictly

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00:18:10.279 --> 00:18:14.119
around you as a trucker to make your life run smoother.

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Help you with bookkeeping, make sure that you have tax

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00:18:19.079 --> 00:18:22.400
planing that you need. Make sure that you know how

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much your estimated tax payments should be made during the

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year so that you're not hit with a huge tax

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bill come April fifteenth, and then penalties for not making

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your estimated tax payments as well. So contact us at

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Trucker Tax Tools and go to Trucker tax tools dot

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00:18:42.720 --> 00:18:46.640
com hit our info page there and you'll be able

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00:18:46.680 --> 00:18:53.400
to connect with us on that site so that you

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are getting every deduction possible. That phone number is eight

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seven seven nine six six two four seven seven again

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eight seven seven nine six six two four seven seven,

299
00:19:13.319 --> 00:19:17.359
So get in touch with us there. Let us help

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you with your bookkeeping and your taxes. You know, as

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we're talking about, you know, business tax planning and everything else.

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Something you can look at as a business owner potentially

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is timing your income and your expenses. So if you're

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using a cash basis accounting, accelerating your expenses into the

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current year would help you bring down your net income.

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So if there are expenses that you can pay and

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you utilize this year, it's something you can look at

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paying those as well. If you are on an acrol

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basis again, and you can be buying things and having

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payables and maybe slow down your collections and you're receivable,

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the same thing goes on a cash basis, you can

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slow down collections and less money that you receive in

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during the last month of the year and defers it

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possibly to collections in January, which takes the income into

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the next year because you are cash basis, so it's time.

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So if you're receiving less cash in today and receiving

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it in January, then you would be bringing down the

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gross revenue, which in turn wouldn't reduce your net income,

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which in turn then lowers or taxes. Now, the next

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year's tax rate is going to be a little bit higher,

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but you've deferred it out a whole other year that

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you would have to pay the federal income tax or

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state income tax on that money. And if you're a

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schedule see filer, you've also deferred paying Social Security of

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Medicare out a whole other year as well. Now brings

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us to a lot of other fun things we can

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do and through the business, and we're going to talk

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about some more great opportunities for tax planning for your business,

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00:21:16.359 --> 00:21:20.960
either as a owner, operator, consultant, retail business, you name it.

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You need strategies. We've got a few more great strategies

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coming up right after this.

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

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00:21:30.720 --> 00:21:34.240
stand by as Barry Chief Fowler will be right back with.

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Tax talk for you.

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As an owner operator, you already spend too much time

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00:21:41.559 --> 00:21:45.400
away from your family. Trucker Tax Tools handles all your

337
00:21:45.400 --> 00:21:48.599
bookkeeping and taxes. No matter what level trucker you are.

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00:21:48.880 --> 00:21:52.039
Life on the road can be taxing, but that doesn't

339
00:21:52.079 --> 00:21:55.480
mean that your wallet or time with your family should suffer.

340
00:21:56.000 --> 00:22:00.680
Trucker Tax Tools makes your life run smoothly. Trucker tax

341
00:22:00.720 --> 00:22:03.440
Tools dot Com for a free guide that will give

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00:22:03.480 --> 00:22:07.319
you the tools to never worry about your taxes again.

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00:22:07.680 --> 00:22:11.759
Call Trucker Tax Tools eight seven seven nine sixty six

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00:22:12.079 --> 00:22:16.039
two four seven seven or go to Trucker tax Tools

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00:22:16.079 --> 00:22:19.519
dot Com now and let the experts keep you trucking.

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Let's get back to tax stock for you with more

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tax stock once again.

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Here's your host, Barry gif Fallo.

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Hey, welcome back. You know we're talking about tax strategies

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saving money on taxes, and I mean that becomes a

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real big key to most business owners. You want to

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find a way to save money on taxes. I mean,

353
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what happens when you get hit with that huge tax

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bill at the end of the year. You go into

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00:22:49.079 --> 00:22:51.920
a painting you don't know where the money's coming from.

356
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Maybe you've been in business for a number of years

357
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and you've had great years and you haven't been able

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00:22:56.160 --> 00:22:58.559
to afford to pay the taxes, and you've got tax debt.

359
00:22:58.880 --> 00:23:02.400
Le's for taxations comes in, saves you from the I

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00:23:02.559 --> 00:23:06.519
R S, saves you from you know, having to pay

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the I R S all at once. Maybe an installment agreement.

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Maybe you qualify for an offering compromise because your income

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is way down this year. Whatever the case is, we're

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in a no judgment zone of taxation solutions.

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00:23:19.279 --> 00:23:19.480
UH.

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Taxation Solutions tax Relief is going to be your representation

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00:23:24.160 --> 00:23:28.480
for strong aggressive tax resolution against the I R S.

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00:23:28.920 --> 00:23:31.039
So don't let them walk all of you. Give us

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00:23:31.079 --> 00:23:34.160
a call it eight eight eight nine three zero one

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00:23:34.279 --> 00:23:37.559
zero one six again eight eight eight nine three zero

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00:23:37.839 --> 00:23:41.279
one zero one six or just go to Taxation Solutions

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00:23:41.440 --> 00:23:47.599
dot net again. Taxation Solutions dot net. Get a free consultation,

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00:23:47.880 --> 00:23:50.880
no obligation. Hey, sometimes we're not going to take you

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00:23:50.880 --> 00:23:52.319
as a client. We're going to tell you what to do,

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00:23:52.759 --> 00:23:56.960
how you can help yourself and solve the problem, you know,

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without having to pay somebody to do it, because it

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00:24:00.960 --> 00:24:03.640
may not be worth hiring someone. But we're getting back

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to talking about tax strategies. So what else can you

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do as a business owner. Well, one of the things

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you can do as a business owner is employee family member. Hey,

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maybe you've got kids, even kids in college, kids in

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high school. You know, if they are able to work

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in your business, you can hire family member to work

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for you. Most likely they're going to be in a

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lower tax bracket. So you know, I have a daughter

386
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in college who does a lot of stuff for us

387
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via social media. She does some other administrative work for

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us as well. We can pay her for the hours

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and the time that she spends and works, and she

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can use that money to pay for her college. So

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we get the deduction on our books and lowers our

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taxes down. She's w two. Yes, we've got to pay

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some of security and Medicare on it, and she has

394
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to pay Federal withholdings and stuff on it, but she's

395
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in a lower tax bracket. She's going to be in

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the ten percent bracket. So if your business income in

397
00:25:04.079 --> 00:25:06.839
your family livelihood is going to drive you up to

398
00:25:07.200 --> 00:25:10.359
you know, a twenty five percent or thirty seven percent

399
00:25:10.480 --> 00:25:16.640
tax bracket, hiring these family members definitely decreases that tax rate.

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And they're working in the business and just pay them

401
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to do nothing. They actually have to be an employee.

402
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They actually have to work. Now you might even be

403
00:25:27.799 --> 00:25:30.240
able to hire a contract but again they're going to

404
00:25:30.279 --> 00:25:33.440
pay Social Security of Medicare on that money. If it's

405
00:25:33.640 --> 00:25:36.720
schedule to see maybe you could set them up in

406
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their own escort and then pay them and then they

407
00:25:39.759 --> 00:25:44.079
got to file taxes and everything from there. So employing

408
00:25:44.319 --> 00:25:47.440
family members, even younger kids that can actually work in

409
00:25:47.440 --> 00:25:52.079
the business for you, they can use that money to

410
00:25:52.119 --> 00:25:56.079
buy clothes, pay for sports and you know, maybe they're

411
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playing travel ball, travel cheer, travel swim, you know, any

412
00:26:01.079 --> 00:26:04.559
number of sports that have you know, travel as well

413
00:26:04.599 --> 00:26:08.759
and have other expenses you're playing select things like that.

414
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They can use that money to pay for all those

415
00:26:12.039 --> 00:26:15.160
things as well, and it doesn't come out of your budget.

416
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It becomes out of their funds. You can even set

417
00:26:18.839 --> 00:26:22.519
them up for retirement accounts. And now you've done something

418
00:26:22.519 --> 00:26:25.319
that most people haven't done, is you've set them up

419
00:26:25.359 --> 00:26:27.720
for life if they never touched that and let that

420
00:26:27.759 --> 00:26:32.519
continue to grow. Now you can retirement accounts, use those

421
00:26:32.640 --> 00:26:36.759
to lower your income for you and your business. Now

422
00:26:36.960 --> 00:26:42.359
you can maximize your retirement contributions. So even if you're

423
00:26:42.440 --> 00:26:47.920
just doing your simple iras, you can reduce your taxable

424
00:26:48.559 --> 00:26:53.119
income while building retirement savings. And then those limits have

425
00:26:53.240 --> 00:26:57.240
increase for twenty twenty five. Now if you have a

426
00:26:57.279 --> 00:27:00.960
plan through the business, so be a solo forour to

427
00:27:01.000 --> 00:27:02.720
one K or maybe a four to oh one K

428
00:27:02.839 --> 00:27:08.839
for the business or simple accept IRA, those plans have

429
00:27:08.960 --> 00:27:12.759
higher limits and you can maximize your contributions. If you

430
00:27:12.839 --> 00:27:17.599
have employees, then you've got to work out matches, so

431
00:27:18.200 --> 00:27:20.880
you can have a one or two percent match for

432
00:27:21.279 --> 00:27:25.119
employees and yourself, but it does lower the amount that

433
00:27:25.160 --> 00:27:27.799
you can actually contribute into these four oh one K

434
00:27:28.160 --> 00:27:32.839
plans because whatever you match for yourself, you had to

435
00:27:32.960 --> 00:27:36.279
use the same percentage to match for them. You might

436
00:27:36.279 --> 00:27:38.759
even be able to use the defined benefit plan.

437
00:27:39.079 --> 00:27:39.319
Now.

438
00:27:39.799 --> 00:27:42.519
I think most of these things come into really good

439
00:27:42.559 --> 00:27:46.240
play when you have strong net income and you want

440
00:27:46.279 --> 00:27:50.759
to build loyalty of the employees with you. You can

441
00:27:50.839 --> 00:27:53.799
have the four to oh one K with matching plans

442
00:27:55.000 --> 00:27:58.599
and with stipulations in there of how long the vesting

443
00:27:58.680 --> 00:28:02.319
period is as well, so it's not something you're just

444
00:28:02.400 --> 00:28:05.519
giving away money and they're going to turn around and

445
00:28:05.559 --> 00:28:09.680
walk in you know, a year two or three. So

446
00:28:10.240 --> 00:28:14.359
you can also put stipulations when that matching kicks in.

447
00:28:15.000 --> 00:28:18.799
Things like that. I suggest you talk to your benefits

448
00:28:18.799 --> 00:28:22.839
coordinator and have them work with you to see how

449
00:28:22.920 --> 00:28:27.480
is this going to help and assist you in providing

450
00:28:27.599 --> 00:28:32.680
the best benefits for you, your family, your company, and

451
00:28:32.799 --> 00:28:37.920
what kind of contributions you're going to have and is

452
00:28:37.960 --> 00:28:40.119
it worth it. Now you get some deductions for other

453
00:28:40.799 --> 00:28:44.559
taxes and things like that, so keep those things in mind,

454
00:28:44.599 --> 00:28:47.119
and the tax credits might even be worth it out

455
00:28:47.119 --> 00:28:51.359
there as well. Now, a couple of things that I

456
00:28:51.440 --> 00:28:54.519
want to start touching on. So we've gone through all

457
00:28:54.559 --> 00:28:57.440
this planning for twenty twenty five, so you have an

458
00:28:57.480 --> 00:29:00.680
idea of what's going on. Your tax prepared and you

459
00:29:00.759 --> 00:29:03.680
should be sitting there with their software and saying, hey,

460
00:29:03.720 --> 00:29:06.039
this is the estimated taxes you're going to have for

461
00:29:06.079 --> 00:29:08.680
twenty twenty five. We're doing that for our clients. We're

462
00:29:08.720 --> 00:29:12.720
starting that process right now of in depth tax planning

463
00:29:12.920 --> 00:29:16.480
for our clients. So if you're a trucker and you're

464
00:29:16.960 --> 00:29:20.440
not with a trucker tax roles, talk to your tax

465
00:29:20.480 --> 00:29:23.839
people your bookkeeping people. How are they doing a tax

466
00:29:23.839 --> 00:29:27.599
plan for you. We're doing those tax plans here currently

467
00:29:28.039 --> 00:29:31.759
and starting to work with our clients on planning. In

468
00:29:31.759 --> 00:29:33.720
the first couple of years we were in this and

469
00:29:33.799 --> 00:29:37.240
we were really getting into tax planning, and a lot

470
00:29:37.240 --> 00:29:39.440
of our truckers were like, hey, I've never had anybody

471
00:29:39.480 --> 00:29:41.640
to do this before. This is new, this is different.

472
00:29:41.920 --> 00:29:44.599
Now they come to expect it. But hey, you have

473
00:29:44.720 --> 00:29:48.200
great ideas. Nobody's ever told me to plan for retirement.

474
00:29:48.599 --> 00:29:52.559
My retirement was sitting in this truck, driving until I dropped,

475
00:29:52.599 --> 00:29:55.519
until they buried me in this truck. What about family?

476
00:29:55.880 --> 00:30:01.440
What about being to be able to retire joy life.

477
00:30:01.559 --> 00:30:03.680
I've seen way too many truckers that are in their

478
00:30:03.720 --> 00:30:07.039
seventies it's still driving because they've never done planning. They've

479
00:30:07.079 --> 00:30:10.240
never planned for retirement, never planned to be out of

480
00:30:10.240 --> 00:30:12.759
the truck. Well, maybe it's time. As a business owner,

481
00:30:12.880 --> 00:30:16.880
you should always be planning. So you've started this, you

482
00:30:17.000 --> 00:30:20.319
started your planning. You're starting to look at what your

483
00:30:20.359 --> 00:30:24.519
net income is. If you're a schedule C, maybe it's

484
00:30:24.559 --> 00:30:28.720
time to consider a new structure. So should you be

485
00:30:29.200 --> 00:30:33.960
an escort? Maybe you're an LLC and you now can

486
00:30:34.160 --> 00:30:37.960
possibly be a multi member LLC and file as a partnership.

487
00:30:38.680 --> 00:30:41.359
Will these strategies work? Will they save you money? So

488
00:30:41.440 --> 00:30:44.559
the first thing we look at is should you be

489
00:30:44.559 --> 00:30:48.079
an escort? Should you be a multi member LLC? Now,

490
00:30:48.200 --> 00:30:51.880
the difference is between those two is maybe as a

491
00:30:51.960 --> 00:30:54.000
husband and wife, we can make you a multi member

492
00:30:54.240 --> 00:30:56.559
LLC and file as a partnership. You can elect that.

493
00:30:57.240 --> 00:31:00.599
Maybe you don't want to have you're not married, don't

494
00:31:00.640 --> 00:31:03.279
have a spouse, and you don't want to take on

495
00:31:03.319 --> 00:31:07.000
a partner, you might be an escort. Are these strategies

496
00:31:07.079 --> 00:31:10.960
right for everybody? No, they're not. You know, I hear

497
00:31:11.079 --> 00:31:13.240
all the time, Hey, so and so said I should

498
00:31:13.279 --> 00:31:15.200
be an es corp. So and so said I should

499
00:31:15.240 --> 00:31:18.880
be a multi member partnership. File a partnership return. Well,

500
00:31:18.920 --> 00:31:21.599
partnership returns are a little bit easier. It keeps the

501
00:31:21.640 --> 00:31:25.319
trash off the personal return, which I'm all for. It

502
00:31:25.400 --> 00:31:27.799
lets you modify what your wages are going to be

503
00:31:27.880 --> 00:31:31.680
by using a guaranteed payment, but you do have to

504
00:31:31.680 --> 00:31:34.720
file that extra tax return. So it does add a

505
00:31:34.839 --> 00:31:38.960
level of complications to your life and expense for that.

506
00:31:39.319 --> 00:31:41.640
If you're not saving enough money and it's going to

507
00:31:41.680 --> 00:31:45.559
be no different filing a partnership return than it is

508
00:31:45.680 --> 00:31:49.400
filing a schedule C. Then why do it other than

509
00:31:49.400 --> 00:31:52.400
getting the trash and the audit ease over to a

510
00:31:52.440 --> 00:31:58.920
partnership return. That's life choices. So now what about an escort?

511
00:31:59.279 --> 00:32:02.519
Everybody's want us to know, don't you? And guess what

512
00:32:02.839 --> 00:32:04.599
I'm gonna fill you in because we're gonna take a

513
00:32:04.640 --> 00:32:07.200
quick break and after we come back, we're gonna talk

514
00:32:07.240 --> 00:32:10.519
about escorps. Why you should or why you shouldn't be

515
00:32:10.559 --> 00:32:12.359
an escort. We'll do that right after this.

516
00:32:13.480 --> 00:32:17.160
We have only scratched the surface of today's show. Please

517
00:32:17.200 --> 00:32:20.480
stand by as Barry G. Fowler will be right back

518
00:32:20.519 --> 00:32:26.359
with tax talk for you. As an owner operator, you

519
00:32:26.599 --> 00:32:29.119
already spend too much time away from your family.

520
00:32:29.680 --> 00:32:31.720
Stop spending time doing paperwork.

521
00:32:32.160 --> 00:32:35.680
Go to Trucker tax tools dot com, a solution built

522
00:32:35.720 --> 00:32:39.920
specifically for truckers. Trucker tax tools dot Com makes your

523
00:32:40.000 --> 00:32:46.119
life run smoothly. Let's get back to tax talk for

524
00:32:46.200 --> 00:32:49.039
you with more tax talk once again.

525
00:32:49.519 --> 00:32:52.039
Here's your host, Barry G. Fowler.

526
00:32:54.279 --> 00:32:57.680
Hey, welcome back. Should you be an escort or shouldn't you?

527
00:32:58.240 --> 00:33:01.400
That's one of the big questions when you're in business.

528
00:33:01.759 --> 00:33:04.559
Now we go through a complete calculation on them and

529
00:33:04.640 --> 00:33:07.720
we show where this money can save you money, where

530
00:33:07.720 --> 00:33:12.039
it can save you in taxes, and what the drawbacks are.

531
00:33:12.359 --> 00:33:14.480
So there are some good things, there's some bad things.

532
00:33:14.519 --> 00:33:18.279
It really depends on your perspective. So first off, we're

533
00:33:18.319 --> 00:33:21.720
going to look at net income. Where's your net income?

534
00:33:21.880 --> 00:33:26.640
If your net income is fifty thousand, being an es

535
00:33:26.720 --> 00:33:30.640
corp isn't necessarily one hundred percent advisable unless you want

536
00:33:30.680 --> 00:33:32.799
to get the trash off of personal return onto a

537
00:33:32.839 --> 00:33:36.519
business return. You can do that, But being an escort

538
00:33:36.640 --> 00:33:38.920
means you've got to pay a reasonable wage to the

539
00:33:38.960 --> 00:33:42.680
business owner that works in the business. Meaning if you

540
00:33:42.759 --> 00:33:45.640
were working in the business for what you do for

541
00:33:45.720 --> 00:33:49.160
the business, you would have to receive a reasonable wage

542
00:33:49.519 --> 00:33:54.680
for that work. That means w two income and a

543
00:33:54.880 --> 00:33:59.440
level of complexity. If there's not enough savings, why spend

544
00:33:59.519 --> 00:34:02.720
the money for payroll and a payroll service, not to

545
00:34:02.759 --> 00:34:06.359
mention the tax return to be done? Do not have

546
00:34:06.519 --> 00:34:12.159
any benefit in your pocket? Now income becomes one one

547
00:34:12.239 --> 00:34:15.760
hundred and fifty two hundred thousand is your net income?

548
00:34:16.360 --> 00:34:20.719
Now we're talking about potential savings. That savings is going

549
00:34:20.800 --> 00:34:24.440
to be the difference between the max tax bull amount

550
00:34:24.519 --> 00:34:27.719
for Social Security, so that it would be right around

551
00:34:27.719 --> 00:34:30.559
one hundred and eighty six thousand and what a reasonable

552
00:34:30.719 --> 00:34:34.400
wage can be. So, if your business was netting two

553
00:34:34.519 --> 00:34:37.239
hundred thousand dollars, let's say you're going to pay all

554
00:34:37.320 --> 00:34:39.760
security and Medicare tax as a schedule see on the

555
00:34:39.760 --> 00:34:42.719
full hundred and eighty six thousand, plus Medicare goes all

556
00:34:42.719 --> 00:34:45.559
the way up to the two hundred. However, if your

557
00:34:45.639 --> 00:34:48.360
reasonable wage for what you do for the business was

558
00:34:48.400 --> 00:34:52.039
only that eighty six thousand, you now don't pay soll

559
00:34:52.119 --> 00:34:55.199
security and Medicare tax on that other one hundred thousand,

560
00:34:55.599 --> 00:34:58.320
So that saves you fifteen thousand, three hundred dollars a

561
00:34:58.400 --> 00:35:03.679
year in soecurity and Medicare. Plus there's that other two

562
00:35:03.679 --> 00:35:05.599
percent that you're going to pay from the one to

563
00:35:05.599 --> 00:35:08.400
eighty six to the two hundred thousand, So added a

564
00:35:08.440 --> 00:35:11.280
little bit more to it than there, and now that

565
00:35:11.440 --> 00:35:15.320
becomes a lot more worthwhile of doing. Or if your

566
00:35:15.360 --> 00:35:18.960
net income is one hundred thousand and reasonable wage for

567
00:35:19.000 --> 00:35:21.840
what you do is fifty thousand, you're going to save

568
00:35:22.000 --> 00:35:26.000
right around seventy five hundred dollars a seven five hundred

569
00:35:26.000 --> 00:35:29.800
dollars in your pocket, not in the government. Now, what's

570
00:35:29.800 --> 00:35:34.360
the drawback? You're paying less into Social Security and Medicare. However,

571
00:35:34.920 --> 00:35:38.480
let's roll back to the retirement accounts. If you take

572
00:35:38.920 --> 00:35:42.679
that savings and you were to make sure you contributed

573
00:35:42.679 --> 00:35:47.880
it into your retirement account, and you made your normal

574
00:35:47.960 --> 00:35:51.760
contribution that you would have made into your IRA, you've

575
00:35:51.800 --> 00:35:56.679
now got a whole bunch more money into retirement. So

576
00:35:56.679 --> 00:35:58.480
if you are able to set up a solo four

577
00:35:58.480 --> 00:36:01.000
oh one K for your business, we rolled all that

578
00:36:01.159 --> 00:36:05.199
money into the solo for one K, means you're going

579
00:36:05.280 --> 00:36:08.800
to have about fifteen three hundred dollars in your solo

580
00:36:08.880 --> 00:36:11.519
for a one K that if you don't touch, it's

581
00:36:11.559 --> 00:36:14.760
going to continue to grow into a retirement age and

582
00:36:14.800 --> 00:36:16.840
then you can draw. And if you do this every

583
00:36:16.880 --> 00:36:20.119
single year and you never touch it and it continues

584
00:36:20.159 --> 00:36:25.599
to compound every year, you could retire as a millionaire

585
00:36:25.920 --> 00:36:29.679
if you started as very young and contribute it every year. Man,

586
00:36:29.679 --> 00:36:31.920
when you get to retirement, agent, it is going to

587
00:36:31.920 --> 00:36:33.920
be a beautiful retirement for it. So what we try

588
00:36:33.920 --> 00:36:36.360
to teach our kids, we try to teach our family. Hey,

589
00:36:36.400 --> 00:36:39.199
something else you can start considering doing if you're running

590
00:36:39.239 --> 00:36:41.719
a really good business, and maybe it's a business that

591
00:36:41.840 --> 00:36:44.239
you know, maybe your family members eventually want to get into,

592
00:36:44.880 --> 00:36:47.719
or maybe they will get into one day they need

593
00:36:47.760 --> 00:36:49.480
to get out and work for somebody else and then

594
00:36:49.519 --> 00:36:53.320
come to work for you eventually, maybe gifting a percentage

595
00:36:53.320 --> 00:36:56.000
of your business to them. So you know, if your

596
00:36:56.039 --> 00:36:58.039
business goes through up and down cycles. When you're in

597
00:36:58.039 --> 00:37:01.239
a downcycle and you gift share of your business, and

598
00:37:01.320 --> 00:37:04.280
especially a business that may be worth much more than

599
00:37:04.360 --> 00:37:10.519
what the inheritance tax is levels going to be, then

600
00:37:10.559 --> 00:37:12.559
you want to find ways to move money out of

601
00:37:12.679 --> 00:37:17.480
your pocket into somebody else's pocket, and especially your beneficiaries

602
00:37:17.519 --> 00:37:20.000
because they'd be paying tax on it. And this is

603
00:37:20.079 --> 00:37:25.199
one way of moving the shares from one to the other. Now,

604
00:37:25.280 --> 00:37:28.480
if it's set up as like a partnership, this can

605
00:37:28.559 --> 00:37:30.840
be really easy and really nice because it can be

606
00:37:31.440 --> 00:37:35.480
shares of capital but not participating in profit and loss

607
00:37:35.639 --> 00:37:38.159
of the business. So if you ever sold a business,

608
00:37:38.360 --> 00:37:42.360
they would have percentage of capital. You can have different

609
00:37:42.480 --> 00:37:46.840
levels of shares in a partnership whereas or even an

610
00:37:47.079 --> 00:37:50.519
LLC whereas an escort, you've got to have one class

611
00:37:50.519 --> 00:37:54.960
of stock, and they're therefore they would receive distributions just

612
00:37:55.039 --> 00:37:59.559
like you would of profits if you're distributing profits, and

613
00:37:59.639 --> 00:38:02.280
they would be responsible for the tax on it. So

614
00:38:02.320 --> 00:38:05.440
we use this in like a real estate investment holding company.

615
00:38:06.719 --> 00:38:10.239
The buildings sitting in here and it's receiving rents and

616
00:38:10.960 --> 00:38:16.000
paying taxes and everything. And airs have a different class

617
00:38:16.519 --> 00:38:19.599
of stock. So maybe they own five percent of the

618
00:38:19.639 --> 00:38:23.840
capital and the business each and the mother and father

619
00:38:24.119 --> 00:38:27.280
owned you know, if there were three kids, that's fifteen

620
00:38:27.320 --> 00:38:29.880
percent and mother and father owned the other eighty five percent.

621
00:38:30.239 --> 00:38:34.880
And those are voting shares and capital. But on the

622
00:38:34.880 --> 00:38:37.239
profit and law of profit side, or the last side,

623
00:38:37.840 --> 00:38:41.639
those shares I say, ay, let's say would receive one

624
00:38:41.679 --> 00:38:46.400
hundred percent of profit from you know, the rental properties

625
00:38:46.440 --> 00:38:50.320
and everything directly via K one. The kids won't receive

626
00:38:50.400 --> 00:38:54.320
anything unless the company is actually sold or liquidated. So

627
00:38:54.920 --> 00:38:58.960
it's kind of a beautiful way to carry property. They

628
00:38:58.960 --> 00:39:03.159
have only the ownership in the shares of the stock

629
00:39:03.800 --> 00:39:07.639
or the membership interests, but they're in a different class,

630
00:39:07.639 --> 00:39:10.360
meaning they have no voting rights, they have no access

631
00:39:10.360 --> 00:39:15.719
to anything through company, and they just owned shares of

632
00:39:16.239 --> 00:39:20.880
capital and you know, mom and dad basically owned the

633
00:39:20.960 --> 00:39:26.599
operating shares, operate the company, and receive the profits from

634
00:39:27.000 --> 00:39:30.719
the business, or the losses from the business goes to them,

635
00:39:31.400 --> 00:39:34.199
not to the kids. So it's kind of a beautiful way.

636
00:39:34.239 --> 00:39:39.519
And eventually, you know, if the parents pass away those shares,

637
00:39:39.920 --> 00:39:43.320
the rest of the capital then would be distributed and

638
00:39:43.400 --> 00:39:46.239
the operating shares would be distributed to the kids if

639
00:39:46.679 --> 00:39:51.800
so see fit or if the company is liquidated upon death,

640
00:39:52.280 --> 00:39:56.000
then you know they would receive the capital that came

641
00:39:56.239 --> 00:39:59.480
out from the business. So it kind of gives you

642
00:39:59.559 --> 00:40:06.599
ways of moving the interest from you here to the

643
00:40:06.719 --> 00:40:11.119
children without impacting their taxes. Maybe you wanted to impact

644
00:40:11.119 --> 00:40:14.639
their taxes and have the money go over to them

645
00:40:14.679 --> 00:40:16.440
and part of the profit, and you can just set

646
00:40:16.480 --> 00:40:18.840
it up that way as well. It's one of the

647
00:40:18.880 --> 00:40:21.320
fun things you can do in your business to make

648
00:40:21.360 --> 00:40:25.199
things work for you and your family. I had a

649
00:40:25.239 --> 00:40:29.360
quick question about charitable contributions. Ray, Hey, I really appreciate

650
00:40:29.400 --> 00:40:34.960
the question charitable contributions. Yes, the One Big Beautiful Bill

651
00:40:35.039 --> 00:40:38.199
had in a provision in it that could influence the

652
00:40:38.239 --> 00:40:42.559
timing of your gifts or charitable contributions. Starting in twenty

653
00:40:42.639 --> 00:40:46.920
twenty six, corporations may only deduct gifts in excess of

654
00:40:47.000 --> 00:40:50.920
one percent of their taxable income. Now this is corporations

655
00:40:51.000 --> 00:40:54.199
eleven twenties doesn't have anything to do with eleven twenty

656
00:40:54.239 --> 00:41:00.480
s's or ten sixty fives. Those charitable contributions through to

657
00:41:00.599 --> 00:41:04.079
you on your personal tax return. And yes, you get

658
00:41:04.320 --> 00:41:08.440
some benefit of charitable contributions, depending on how much the

659
00:41:08.519 --> 00:41:13.480
charitable contributions are well to depend on the magnitude of

660
00:41:13.519 --> 00:41:16.119
the effect it has. Now you're going to have some

661
00:41:16.280 --> 00:41:23.440
direct limited deductions, they're not on Schedule A, but excess

662
00:41:23.519 --> 00:41:28.199
above that limitation starting in twenty twenty six is all

663
00:41:28.239 --> 00:41:31.639
going to still go on Schedule A if you're above

664
00:41:31.960 --> 00:41:35.079
that threshold that they have for you on the taxes.

665
00:41:35.440 --> 00:41:38.760
I still say, if you're in business, everything you do,

666
00:41:39.199 --> 00:41:42.760
whether you're making a terrible contribution, you're participating maybe a

667
00:41:42.880 --> 00:41:48.119
charity golf event, maybe you're participating at your church's bizarre

668
00:41:48.199 --> 00:41:52.719
and you're sponsoring things, it's not necessarily a charitable contribution.

669
00:41:52.920 --> 00:41:56.119
That is advertising and is marketing. You're getting your name

670
00:41:56.239 --> 00:42:00.000
out there. Don't classify it as a charitable contribution. Classify

671
00:42:00.199 --> 00:42:03.800
it as marketing expenses. Now, if you're just giving a

672
00:42:03.840 --> 00:42:07.079
gift to the church on a Sunday and you're just

673
00:42:07.119 --> 00:42:10.400
giving it, and there's no benefit of marketing out of it.

674
00:42:10.400 --> 00:42:13.400
It's not a marketing expense. It's sharable contribution. Don't try

675
00:42:13.440 --> 00:42:16.320
to classify it any other way. So those are the

676
00:42:16.320 --> 00:42:18.639
things that you need to keep in mind. Hey, what

677
00:42:18.719 --> 00:42:21.880
do we take out of all this today? Planning, planning, planning.

678
00:42:21.920 --> 00:42:25.239
The more planning you do, the less you hopefully will

679
00:42:25.280 --> 00:42:30.519
pay in taxes. Find a good action prepare, Find somebody

680
00:42:30.519 --> 00:42:32.800
that's an enrolled agent that I'll sit down and work

681
00:42:32.840 --> 00:42:36.639
with you that you know, whether it's virtual, whether it's

682
00:42:36.800 --> 00:42:39.719
in office, whether it's remote. You've got to have somebody

683
00:42:39.719 --> 00:42:43.199
to talk to. Planning. We're doing planning now for our truckers.

684
00:42:43.320 --> 00:42:47.599
Taxation Solutions does planning for their clients as well. Find

685
00:42:47.639 --> 00:42:53.840
somebody good, find somebody that knows your industry and above all, plan, plan, plan, plan,

686
00:42:54.199 --> 00:42:57.880
And they say in real estate and it's location, location, location.

687
00:42:58.400 --> 00:43:02.719
In taxes, I said, day all your long, it's planning, planning, planning,

688
00:43:02.960 --> 00:43:06.039
get your tax plan, make sure your tax plan is right,

689
00:43:06.480 --> 00:43:10.559
review your tax plan. Planning, planning, planning. Hey, this is

690
00:43:10.840 --> 00:43:15.119
a great week, great day. We're coming to you know,

691
00:43:15.440 --> 00:43:18.719
what's six weeks left in the year. Get your plans

692
00:43:18.760 --> 00:43:22.840
done tomorrow, celebrate. Thank you veterans, to all our veterans

693
00:43:22.880 --> 00:43:26.400
out there, thank you, thank you, thank you for all

694
00:43:26.639 --> 00:43:29.840
you've done for this God bless you. Hey. Tune in

695
00:43:29.880 --> 00:43:33.239
here every Monday, ten am Eastern time on Tax Talk

696
00:43:33.320 --> 00:43:37.320
for you again. It's Tax Talk number four, letter you

697
00:43:37.960 --> 00:43:41.559
dot com. Follow us over there and never miss an

698
00:43:41.599 --> 00:43:45.199
episode whatsoever, and we'll be right here on W four

699
00:43:45.239 --> 00:43:50.639
CUI Radio ten am Mondays Eastern time. Be here, tune in,

700
00:43:51.000 --> 00:43:53.440
let us answer your questions. We'll see you next week.

701
00:43:53.480 --> 00:43:57.320
Have a God bless glorious week, and again, thank you veterans.

702
00:43:58.280 --> 00:44:01.480
Are you an individual or business that wants to understand

703
00:44:01.519 --> 00:44:04.920
taxes and how they affect you. Are you looking for

704
00:44:04.960 --> 00:44:10.400
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.

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Vouer Ea.

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Tune in ten am Eastern time every Monday right here

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on W four CY Radio and Talk for TV. Don't

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forget to check this and past episodes at tax talkforu

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dot com. See you next week at W fourcy dot com.