Tax Reduction Podcast
Introducing your host, Boris Musheyev, CPA. In this podcast Boris debunks the tax code by teaching you simple and effective tax strategies, so you can keep the most of what you make. His mission is to help you cut taxes and build wealth using the power of proactive tax strategies. Every episode you will gain a better understanding of how the tax code is designed to be in favor of money-making entrepreneurs like yourself.
🆓 Download FREE PDF: 7 Write-Offs Every S-Corporation Business Owner MUST Know: https://bit.ly/podcast7writeoffs
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Tax Reduction Podcast
Episode 32. Trump’s Tax Plan: How Business Owners Can Benefit
How will Trump's Tax Plan impact YOU; a profitable business owner and entrepreneur? This podcast breaks down key tax strategies, deductions, and tax savings opportunities under his proposed policies. Learn how bonus depreciation, cost segregation, vehicle loans, and research and development tax credits could help lower your tax bill. We’ll also cover Social Security benefits, no tax on tips, and how overtime pay affects reasonable compensation for S-Corporation owners. Understanding these tax planning strategies is crucial for maximizing write-offs and keeping more of your hard-earned money. Plus, we’ll discuss changes to corporate tax rates, pass-through income, and potential deductions that could benefit profitable businesses. Don’t miss out on these valuable insights!
I've put together this FREE resource for you:
7 Write-Offs Every S-Corporation Business Owner MUST Know
🆓 Download FREE PDF here: https://7taxwriteoffs.com/
Ready to start saving money on your taxes?
☎️ Schedule your FREE Tax Advisory Session: https://taxplanningcall.com/
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*Disclaimer This material & presentation content is for informational and educational purposes only. This material and presentation content is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this reason, ...
If you are a profitable business owner, the Trump's tax plan for 2025 and beyond is going to affect you by a lot how much money you pay in taxes, what type of deductions you take, and so forth. Now I'm going to put all the noise on the side, the biggest noise out there no tax on social security, no tax in overtime. What I want to focus on is you, the business owner. How is it going to affect your business taxes? We're going to keep it short, we're going to keep it to the point and also below, you will see on this YouTube channel chapters for each thing that we're going to talk about, so it's easier for you to navigate through the channel. My name is Boris Moshe, I'm a CPA and I'm about to bring you amazing tax strategies for Trump's tax plan. Ready, let's get started.
Speaker 2:Welcome to the Tax Reduction Podcast for money-making entrepreneurs with Boris Mushaev. Boris has helped entrepreneurs across the United States collectively save millions of dollars in taxes with the power of tax planning and advisory. The only way you, the business owner, can save money on taxes is by using proactive tax strategies, and this podcast is all about saving you money on taxes. Boris will share with you in-depth and easy to understand tax reduction strategies that you can implement in your business within 30 days or less. Let's jump into today's episode.
Speaker 1:Okay, before we continue, it's really, really important to know that today's February 10th of 2025, everything that Trump administration has announced is not yet law. Most likely, majority of them will pass in Congress, and that is exactly what we're going to talk about here Now, one of the things that we're going to talk about I'm really going to focus on six things over here that it's going to affect you, the business owner the vehicle loans when you take out a loan on the vehicle. Okay, I've always talked about how can you write off your personal car on your business taxes if you're not using it a hundred percent. Well, what happens to the other percentage that is used for personal? Mr President, trump has actually some great plans for you. We're going to talk about that. We're also going to talk about bonus depreciation. It finally may come back, and I think it will strongly come back to 100%. That is going to affect you if you're buying cars over 6,000 pounds for your business or if you are investing in real estate. Huge opportunity for those that invest in real estate Research and development tax credits. If you think your business does not qualify for research and development, think twice. You might want to research this a little bit more in depth, speak to your tax advisor. But research and development tax credits took a huge hit in the past couple of years. We're going to talk about that. It's coming back, ladies and gentlemen. It's coming back 100%. Well, I hope so. Okay.
Speaker 1:Social security benefits President Trump, on his campaign, was saying there will be no taxes on social security benefits to the retirees. What does that mean for you, the wealthy business owner that is about to retire and receive nice social security? Is that going to be taxable? And then there's also no tax on tips. We're going to talk a little bit about that and how it may affect you if you're a business owner of a restaurant. So again, jump through the chapters over here and we're going to talk about overtime pay. What I'm curious about overtime pay, the reasonable compensation that I always talk about a lot. Would we be allowed to restructure it a little bit so we have some overtime pay and not pay any income tax on it? I'll be very curious to see how that's going to work out for a business owner. But let's dive deep into each one of these. All right, auto loans. So, on a campaign travel, president Trump was saying that there will be.
Speaker 1:You can itemize deductions right. Itemize the interest that you pay for financing your personal vehicle. Now, what does itemizing deduction mean? Now? You pay for financing your personal vehicle. Now, what does itemizing deduction mean now? When you file your personal taxes, you either take a standard deduction, which is, if you are married, thirty thousand dollars, or you take itemized deductions, which majority of business owners take itemized because they own a home. They get to write off their mortgage interest, charitable donations, property taxes and what's not. Now what happens is that one of those itemized deductions, president Trump is saying you can write off the finance charges, the interest that you pay on your vehicles. Wait what? How is that going to benefit you, the business owner? Well, because some business owners don't necessarily use their personal car 100% for the business. They could be using it 60%, 50%, 40%. Well, president Trump comes back and says hey, I've got another way for you to write off your car expenses on an itemized deduction. Is that going to pass in the law? I am not sure, but it's something he toyed around with and usually, when he says something is going to pass, most likely it will. So definitely keep an eye out on that.
Speaker 1:If you are working with a tax preparer, you do not have a tax advisor that's advising you on these tax law changes. Please speak to your tax advisor. Speak, excuse me, get yourself a tax advisor and don't speak to your preparer. Okay, awesome, let's move on to a bonus depreciation Now. We all know when 2017 Tax Cuts and Jobs Act was passed and don't speak to your preparer. Okay, awesome, let's move on to a bonus depreciation Now. We all know when 2017 Tax Cuts and Jobs Act was passed, one of the biggest things there was 100% bonus depreciation. Now a lot of people think oh my God, trump gave us 100% deduction, not on everything, ladies and gentlemen. You still had a Section 179 that you could use to take 100% deduction and you can pick and choose how much depreciation to take this year, but with bonus, it benefits those individuals that buy a car that is more than 6,000 pounds for their business. Okay, now that if the car is 100% business use, it's 100% bonus depreciation deduction on the entire cost of the vehicle.
Speaker 1:The biggest other thing is for those that invest in real estate. If you invest in real estate, you may want to use a cost segregation that basically allows you to accelerate your depreciation deduction. If bonus depreciation is back, the items that are part of the cost segregation, that have a useful life less than 15 years, will be subject to 100% deduction in your first year. It's a huge opportunity for those of you that are looking to invest in real estate short-term rentals, long-term rentals and if those losses can be deducted to you against your business income, wow. Especially in some cases, business owners actually buy their own piece of real estate where they house their business. If you combine those two activities together, okay, that real estate losses generated from that using cost segregation, bonus depreciation on top of that can all be deducted against your business income.
Speaker 1:Again, let's continue with research and development tax credit. Now I've read that America, united States, is one of the countries that is way behind this right. We don't really incentivize this for business owners. To make matters worse, about two years ago the law has changed. If you were a business owner and you had research and development, now if you had, for example, $100,000 in research and development tax credits, irs said not only are you going to get a 10% credit, but you're also going to get a 100% deduction on those qualified expenses after you minus the credit.
Speaker 1:But let's just leave that mathematical calculation on the side. The point is that you could take a deduction and a credit. As of about two years ago, that has changed. The government said you can still take the credit, but the deductions you have to amortize over five years. Do you know how many startup businesses actually went out of business Because, wait, I cannot deduct my expenses but I can take credit? I need those deductions. It really hurt a lot of businesses. I personally have tax advisory clients that. It hurt them a lot. The good news is that this will come back to incentivize the business owners to put more money into research development, get 100% credit well, not 100%, excuse me, whatever the credit calculation is and 100% tax deduction. That is part of this Trump's tax plan for profitable business owners. Now we are going to be back right after this break.
Speaker 2:If you have a tax preparer and you do not have a tax advisor, the only way you can save money on taxes is by using proactive tax planning strategies that only a tax advisor can give you. Boris put together a free PDF for you, the business owner Seven tax write-offs every S-corporation business owner must know. In this PDF, you can find seven tax strategies that you can start using in your business to instantly start saving money on taxes. Click on the link in the description below for a free download.
Speaker 1:Okay, welcome back again. If you're watching this long, you're probably a fan already, so please go ahead and subscribe to my channel. Let's continue with social security benefits for wealthy business owners that are about to retire from their business. They've got tons of money, tons of income coming in. They had a tax advisor. Everything was planned accordingly. Amazing.
Speaker 1:Now you're receiving social security benefits, are they going to be taxable to you? No, as of the law stands right now, that is not going to be taxable for those that don't have any other income, but even for those that have all the other income. Because right now, the way the law is written is that if you're receiving and I'm just going to use general terms, not going to get into the limits and all of that stuff If you're a retiree, your only income is Social Security benefits, those Social Security benefits are not taxable to you. Now, if you're receiving Social Security benefits as the law stands right now and you have other sources of income, you are reaching that point where about 85% of your social security benefits right up to 85% of the social security benefits will be taxable to you. Now, when I used to be back in the day when I was not a tax advisor. I know shame on me. When I was a tax preparer I did a lot of returns for seniors okay, and it really hurt to see that a lot of seniors that are receiving social security benefits and a little bit of pension income which puts them over the top where social security benefits became taxable to them. The reason I don't like it so much personally is because you work on a W-2. You pay into the social security system, you pay social security taxes. When you retire, the little bit of the social security income that you receive, you start paying tax on it. I personally never liked it. So I'm very, very happy to see this that social security benefits will not be taxable Now, regardless of how wealthy the individual is, because remember who paid into the Social Security benefits? It's everybody, right, whether you're the business owner, not the business owner, everybody who has worked, even teachers, right. My wife used to be a teacher. Every time she received a paycheck that was a big Social Security tax on that right For a teacher. So I never agreed that Social Security benefits should be taxable and this administration actually is coming up with something that says it's not going to be taxable to you, which is really, really awesome.
Speaker 1:Now, tips will not be subject to income taxes. What I really I am really curious about is that it may not be subject to income taxes. Is it going to be subject to social security, medicare tax again? And if you are a business owner in any way, the the fact that the tips are excuse me, if you're a restaurant owner, the fact that the tips are not going to be taxable to your waiters or waitresses, right, it's not really going to make a dent for you because you're not paying any income taxes on those tips. You're just distributing those tips out. Actually, ted Cruz was one of the original people who wanted to pass this, and one of the things that he was saying is that you get a deduction on the tip income that was taxed to you. So how is this really going to play out? I don't know, but Trump's administration is going very, very strong on it. I don't think it's going to have that big of an effect or any effect on a business owner or business owner's taxes. All right, the last thing.
Speaker 1:Let's talk about overtime pay. Now, I'm very curious about this because you, as a profitable business owner, you probably work a lot overtime, right? So you're the business owner, you definitely work over 40 hours. Now you pay yourself a salary especially if you have an S corporation. You pay yourself a reasonable compensation. Generally, that reasonable compensation is calculated on the 40-hour workday. What if you work over that and you pay yourself overtime? Will that be taxable to you? I'm very curious to see how that's going to work out. I'm going to start paying myself an overtime pay.
Speaker 1:If this applies to everybody, it could be that, you know, highly compensated employees doesn't apply. It applies to administrative staff. Doesn't apply to exempt employees that are exempt from overtime, such as professionals like accountants or attorneys or whatever that may be. So it's very, very interesting to see how that's going to turn out and if it's going to benefit the business owners in any way, because there's going to be a huge strategic opportunity for you, the business owner, to work with your tax advisor to restructure your pay for overtime pay. So again, I'm not sure how this is going to work out. I'm definitely keeping an eye on this because I think this could be also a great opportunity for a business owner, and I just want to say thank you and until the next time.
Speaker 2:That's it for today's episode. Be sure to check out the description below for some free tax reduction resources that Boris put together for you. If you're ready to work with a tax advisor on your tax planning, be sure to schedule your call by heading over to wwwtaxplanningcallcom. That's wwwtaxplanningcallcom. And be sure to subscribe to our podcast to be notified when the next strategy is released.