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Have you ever wondered how to turn your everyday expenses into legitimate business deductions?

Mike Jesowshek discusses strategies for maximizing small business tax deductions, emphasizing the importance of both obvious and non-obvious deductions. He explains that any expense, whether ordinary or necessary for the business, qualifies as a deductible. Mike emphasizes proper documentation and legal compliance to ensure these deductions are valid. He also contrasts pre-tax and after-tax spending, showing how business owners can leverage pre-tax expenses to reduce taxable income. The episode includes practical tips on turning personal expenses into business deductions and stresses the importance of keeping separate business and personal financial accounts to avoid commingling.

Tune into this episode to uncover the strategies that can save your business thousands in taxes each year!

[00:00 - 04:54] Introduction and Basic Deduction Concepts

• Mike Jesowshek introduces the topic of maximizing tax deductions for small businesses.
• He explains basic deductible expenses like advertising and software purchases.
• He emphasizes the correct implementation and documentation to keep deductions legal.

[04:55 - 09:33] Maximizing Deductions and Real-World Applications 

• Mike talks about converting personal expenses to business deductions.
• Pre-tax versus after-tax spending and its impact on taxes.
• Mike shares real-life scenarios of converting personal expenses during COVID-19.
• It is important to keep receipts and detailed documentation for all business expenses.

[09:34 - 16:45] Effective Documentation and Banking Practices

• Avoid commingling of funds and separate business accounts.
• Mike outlines strategies for documenting meals and travels as business expenses.
• Mike discusses the use of accountable plans to handle business expenses paid personally.
• He emphasizes the importance of reimbursements to ensure proper tax records and compliance.

[16:46 - 24:19] Exploring Common Deductions and Episode Wrap-Up

• Mike encourages listeners to review the IRS guidelines to understand what qualifies as a deductible expense.
• He shares strategies for integrating personal activities with business purposes to optimize tax deductions.

Direct Quotes:

"As a business owner, pre-tax spending allows you to reduce taxable income before it even reaches your pocket." - Mike Jesowshek

"Maximizing deductions isn't just about spending more; it's about spending smarter." - Mike Jesowshek

Resources Mentioned:

• Free guide on maximizing deductions available at: www.TaxSavingsPodcast.com/deductions 

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

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Podcast Website: https://www.TaxSavingsPodcast.com

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YouTube: https://www.youtube.com/@TaxSavin