Tax in Action: Practical Strategies for Tax Pros

By Jeremy Wells, EA, CPABusiness Education

Tax in Action: Practical Strategies for Tax Pros episodes

August 06, 2025Repair vs. Improvement: When Can You Deduct It?
A rental property owner faces a $27,000 repair bill after a plumbing leak forces a complete bathroom renovation, water heater replacement, and structural repairs. Jeremy breaks down Treasury Decision 9636's framework for distinguishing between deductible repairs and capitalized improvements, using the three-part test of betterment, restoration, and adaptation. He also explains three valuable safe harbors including the de minimis election and routine maintenance provisions that can help property owners expense more costs immediately rather than depreciating them over time.
Sponsors
SafeSend - taxshow.promo/safesend

(00:00) - Introduction to Repairs vs. Improvements
(00:44) - Understanding the Basics of Repairs and Improvements
(01:42) - Real Estate and Vehicle Examples
(04:30) - IRS Guidelines and Treasury Decision 96-36
(06:53) - Case Study: Rental Property Repairs
(18:39) - Determining Repairs vs. Improvements
(37:30) - Safe Harbors for Taxpayers
(54:22) - Conclusion and Key Takeaways

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of the Earmark Media
55 min
July 23, 2025The Knowledge Economy Tax Trap: When Education Costs Aren't Deductible
Jeremy breaks down the complex world of work-related education tax benefits, revealing why most educational expenses aren't as deductible as business owners think. He explains the stark difference between limited educational assistance programs that cap benefits at $5,250 annually and business expense deductions that often get rejected by the IRS for qualifying taxpayers for "new trades or businesses." Through real tax court cases involving everyone from IRS agents trying to deduct law school to nurses upgrading their licenses, this episode exposes the narrow window where education costs actually qualify as legitimate business deductions.
Sponsors
SafeSend - taxshow.promo/safesend

(00:00) - Introduction: The Knowledge Economy
(01:00) - General Education Tax Benefits
(04:20) - Business Owner Education Questions
(05:20) - Two Main Approaches for Business Education Benefits
(08:20) - Educational Assistance Programs Deep Dive
(14:20) - Program Limitations and Restrictions
(22:20) - What Educational Assistance Programs Cover
(26:40) - Substantiation and Double Benefit Rules
(30:20) - Business Expense Deduction Alternative
(33:00) - Qualifying Education Expenses
(37:40) - Non-Deductible Education: Two Key Exceptions
(41:00) - Established in Trade or Business Requirement
(44:20) - Law Degrees and New Trade or Business
(48:00) - Professional Certifications as New Trade or Business
(49:40) - MBA Programs: Split Tax Court Decisions
(52:40) - Final Warnings and Best Practices

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of the Earmark Media
55 min
July 09, 2025The Refund Statute of Limitations: When Time Runs Out
Understanding the refund statute of limitations can mean the difference between claiming a refund and losing that money forever. This episode breaks down the complex rules around when taxpayers can file refund claims and how much they can recover, using the recent Hamilton v. US case as a cautionary tale. Whether you're dealing with late-filed returns, amended returns, or clients who've fallen behind on their taxes, these statute of limitations rules will determine what's possible and what's permanently lost.
Sponsors
SafeSend - taxshow.promo/safesend

(00:00) - Welcome to Tax in Action
(01:50) - Understanding Finality in Tax Code
(03:28) - Assessment vs. Refund Statute of Limitations
(04:11) - Challenges and Misunderstandings
(07:37) - Case Study: Hamilton v. US
(13:09) - Key Tax Code Sections
(17:21) - When Can a Taxpayer Claim a Refund
(31:46) - Estimated Payments
(33:17) - Special Considerations and Exceptions
(52:42) - Conclusion and Key Takeaways

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of the Earmark Media
54 min
June 25, 2025Joint vs Separate: Marriage Filing Fundamentals
Most tax professionals assume joint filing is the default for married couples, but the tax code actually says the opposite. Jeremy Wells explores the surprising reality that married filing separately is technically the default status, requiring both spouses to elect joint filing under IRC Section 6013. He breaks down the key disadvantages of separate returns—from reduced credits to income limitations—while explaining legitimate scenarios where paying extra tax through separate filing can lead to better overall financial outcomes, particularly with student loan repayment strategies.
Sponsors
SafeSend - taxshow.promo/safesend

(00:00) - Welcome to Tax in Action
(01:03) - Default Filing Status for Married Couples
(02:42) - Misinterpretations of Joint Filing
(06:30) - Exceptions and Special Cases
(11:00) - Why Joint Returns Have Become the Default for Married Couples
(21:08) - Disadvantages of Filing Separately
(30:29) - Loss of Available Credits
(44:47) - Reasons to Consider Filing Separately
(53:20) - Common Myths and Misunderstandings
(56:14) - Exceptions to Irrevocable Joint Filing
(59:49) - Conclusion and Final Thoughts

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of the Earmark Media
1 hr 1 min
June 11, 2025The 1031 Exchange Basics
Jeremy Wells breaks down the fundamentals of Section 1031 exchanges, explaining how real estate investors can defer capital gains taxes by swapping properties rather than selling and buying separately. He clarifies common misconceptions about these transactions, walks through the strict timing requirements including the 45-day identification and 180-day completion rules, and examines court cases that reveal when the IRS challenges whether replacement properties were truly intended for investment purposes. The discussion covers qualifying property types, disqualified persons, and the practical mechanics of using qualified intermediaries to facilitate these tax-advantaged exchanges.
Sponsors
SafeSend - taxshow.promo/safesend

(00:00) - Introduction to 1031 Exchanges
(02:06) - Understanding the Basics of 1031 Exchanges
(04:15) - Mechanics of a 1031 Exchange
(08:22) - Qualifying Property for 1031 Exchanges
(17:49) - Case Studies: Real-Life 1031 Exchange Scenarios
(27:42) - Taxpayer's Genuine Effort to Rent Property
(29:12) - Disqualified Persons in Section 1031 Exchanges
(32:28) - Understanding Like-Kind Property
(42:20) - Deferred Like-Kind Exchanges
(50:13) - Reporting Like-Kind Exchanges on Form 8824
(54:51) - Conclusion and Final Thoughts

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of the Earmark Media
56 min
May 28, 2025 S-Corporation Reality Check
Jeremy dives deep into the critical red flags that should make tax professionals pump the brakes on S-corporation elections. From balance sheet debt ratios that could trigger unexpected taxable events to operating agreement provisions that can inadvertently terminate S-elections, this episode challenges the "default to S-corp" mentality that's become prevalent in tax advisory circles. Jeremy breaks down the specific scenarios where partnerships or sole proprietorships actually serve business owners better than the often-hyped S-corporation structure.
Sponsors
SafeSend - taxshow.promo/safesend

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of the Earmark Media
56 min
May 21, 2025Cracking the R&D Tax Credit Code: Section 41 Explained
The R&D tax credit offers significant tax-saving potential, yet remains misunderstood by many small business owners and their advisors. Jeremy breaks down the key components of the Section 41 credit, explaining qualified research activities, eligible expenses, and calculation methods. Small service-based businesses might qualify more often than they realize, especially when research activities relate to technological innovation, computer science, or engineering processes.
Sponsors
SafeSend - taxshow.promo/safesend

(00:00) - Introduction to the R&D Credit
(03:00) - Components of the R&D Credit
(06:00) - Defining Qualified Research
(13:00) - Business Components and the Shrinking Back Rule
(20:00) - Non-Qualifying Research Activities
(24:00) - Internal Software and the High Threshold of Innovation Test
(29:00) - Calculating the R&D Credit
(32:00) - Qualifying Wages and Expenses
(38:00) - Contract Research Expenses
(43:00) - Credit Calculation Methods
(49:00) - Payroll Tax Election for Startups
(51:00) - Interaction with IRC Section 174
(53:00) - Special Rules for Partnerships
(56:00) - Common Myths and Final Thoughts

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of the Earmark Media
1 hr 3 min
May 14, 2025Clean Energy Tax Credits: What Qualifies and What Doesn't
Solar installations create valuable tax benefits, but determining eligible expenses requires careful analysis. Jeremy Wells breaks down the Residential Clean Energy Credit under IRC Section 25D, explaining which costs qualify, how to handle roof modifications, and when the credit can be claimed. The episode provides essential guidance for tax professionals encountering clean energy improvements on client properties.
Sponsors
SafeSend - taxshow.promo/safesend

(00:00) - Welcome to Tax in Action
(00:24) - Client's Solar Panel Installation Scenario
(01:54) - Understanding the Solar Tax Credit
(05:22) - Qualifying Properties and Expenses
(12:43) - Business Use and Allocation at Residence
(15:13) - Calculating Qualifying Expenditures
(36:43) - Timing and Reporting the Credit
(42:23) - Summary and Final Thoughts
(50:36) - Conclusion and Next Steps

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
Subscribe on YouTube
https://www.youtube.com/@TaxinAction
Earn CPE for Listening to This Podcast
https://www.earmark.app/
This podcast is a production of the Earmark Media
52 min
April 15, 2025 Thanks for Subscribing
1 min

About Tax in Action: Practical Strategies for Tax Pros

From the publisher's feed

Join Jeremy Wells, EA, CPA, as he breaks down the complexities of tax law into practical guidance you can apply immediately. Each episode focuses on a specific tax strategy, credit, or compliance…