Listener Q&A with Mike Jesowshek CPA

Small Business Tax Savings Podcast

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Have you ever wondered if you could hire your older child to watch your younger one and claim it as a business expense? Or are you maximizing the benefits of a Health Savings Account to its fullest potential?

In this Q&A episode of the podcast, host Mike Jesowshek answers a series of listener-submitted questions covering a wide range of topics pertinent to small business owners, such as tax deductions, business expenses, payroll management, and tax strategies. Mike provides detailed insights on various scenarios, such as employing children, maximizing HSA contributions, and the proper way to handle business travel deductions. He also discusses the benefits of using payroll software for S Corporations and outlines strategies for setting reasonable salaries within an S Corporation framework. Additionally, the episode includes practical advice on managing business deductions for vehicle expenses and hiring offshore freelancers.

[00:00 - 00:59] Introduction and Webinar Announcement

[00:53 - 04:11] Hiring Family Members and Maximizing HSA Contributions

• Mike discusses the non-deductibility of hiring children for childcare within most small business contexts.
• Health Savings Accounts (HSAs) are tax-advantaged tools, like "retirement plans on steroids."

[04:11 - 09:42] Business Purchases, Tax Implications, and Renting Personal Equipment to Your Business

• Mike breaks down the financial aspects of purchasing a business, focusing on asset depreciation and the treatment of seller financing.
• Correctly account for personal equipment used for business to ensure tax efficiency.

[09:42 - 15:31] Using Payroll Software for S Corporations and other Tax Topics

• Using payroll software to streamline payroll processes can avoid common mistakes.
• Providing comprehensive answers to specific questions helps clarify complex tax situations.

[15:31 - 23:09] Benefits of Payroll Software for S Corps and Correct Payroll Handling

• What are the repercussions of not managing payroll properly in a small business setting?
• Effective payroll management prevents penalties and ensures financial stability.

[23:09 - 25:44] Travel Deductions for Business Trips

• Mike provides guidance on how to document and justify travel expenses as ordinary and necessary for business purposes.
• Detailed documentation and understanding of IRS guidelines can make travel expenses deductible.

[25:44 - 26:49] Closing Remarks and Additional Resources

• Mike concludes with additional resources, a call for questions for future episodes, and a reminder of the upcoming webinar.

Direct Quote:

"Think of an HSA almost as a retirement plan on steroids." - Mike Jesowshek, CPA

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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

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