Title: Tax Smart Hustlers Podcast - Episode 5: When $40,000 Net Isn't Enough

Hosted by: Aaron Siegel, Tax Advisor, Thrive Tax Solutions

Episode Summary:

In Episode 5, Aaron Siegel delves into the critical decision of converting a side hustle into an S corporation, especially when net income exceeds $40,000. This episode provides a comprehensive analysis of the factors to consider before transitioning to an S corporation, addressing common misconceptions and providing valuable insights for small business owners.

Key Topics Covered:

1. When to Consider S Corporation Conversion:

   • Evaluating if $40,000 net income is the right threshold for S corporation conversion.
   • Importance of careful planning with a tax advisor and considerations for late S corporation conversions.

2. Cash Flow and Payroll Considerations:

   • Understanding the impact of S corporation conversion on cash flow and payroll requirements.
   • Identifying potential cash flow issues in young businesses considering S corporation status.

3. Compliance Costs of S Corporations:

   • Acknowledging the added costs of tax preparation and payroll in an S corporation.
   • The breakeven point between FICA savings and additional compliance costs.

4. Business Growth and Stability Analysis:

   • Assessing the consistency and growth trajectory of the business before conversion.
   • The importance of stable and increasing cash flow for supporting reasonable compensation.

5. Reasonable Compensation Analysis:

   • Discussing IRS rules and the lack of specificity regarding reasonable compensation.
   • The importance of understanding federal labor laws, minimum wage, and overtime-exempt wage guidelines.
   • Considering professional skill sets and their value in determining reasonable compensation.

6. Additional Compliance Considerations:

   • Understanding the additional costs and compliance requirements associated with running an S corporation.
   • There is a need to make informed decisions based on the overall financial situation of the business.

Conclusion:

• Summary of key points for considering S corporation conversion.
• Emphasis on consulting with a tax advisor for personalized guidance.

Contact Information:

• Social Media: @TrustYourTaxes
• Email: hi@taxsmarthustlers.show
• Website: taxsmarthustlers.show

Disclaimer: This podcast provides educational information only and should not be considered as professional tax advice.

Title: Tax Smart Hustlers Podcast - Episode 4: All About Accountable Plans

Hosted by: Aaron Siegel, Tax Strategist, Thrive Tax Solutions

Episode Summary:

In Episode 4, Aaron Siegel dives deep into the world of accountable plans, particularly crucial for individuals transitioning from a Schedule C business to an S corporation. This episode breaks down the essentials of accountable plans, ensuring compliance with IRS requirements and maximizing tax benefits.

Key Topics Covered:

1. Introduction to Accountable Plans:

   • Understanding the purpose and importance of an accountable plan in an S corporation.
   • Overview of IRS requirements for accountable plans and reimbursement of business expenses.

2. Key Requirements of Accountable Plans:

   • Business connection of expenses.
   • Substantiation of expenses with receipts or proof.
   • Refunding excess payments to the business.

3. Specific Expense Areas and How to Manage Them:

   • Car and truck expenses: Choosing between standard mileage rate or actual expenses, and the importance of maintaining mileage logs.
   • Home office expenses: Guidelines for claiming home office expenses and the role of depreciation in tax calculations.
   • Shared expenses (e.g., internet and cell phone use): Strategies for reasonable allocations and the benefit of having separate business and personal lines.

4. Health Care Benefits in S Corporations:

   • How to ensure health insurance premiums remain deductible in an S corporation setting.
   • The importance of having the S corporation pay these benefits costs directly.

5. Timely Reimbursement and Documentation:

   • Understanding the 30, 60, 120-day rule for reimbursements.
   • The importance of timely and accurate documentation for reimbursements.

Conclusion:

• A summary of the importance of accountable plans in S corporations.
• Encouragement to stay compliant and avoid potential pitfalls.

Contact Information:

• Social Media: @TrustYourTaxes
• Email: hi@taxsmarthustlers.show
• Website: taxsmarthustlers.show

Listener Engagement:

• Request for listener feedback and suggestions for future episode topics.
• Invitation to rate and review the podcast.

Disclaimer: This podcast provides educational information only and should not be considered as professional tax advice.

Title: Tax Smart Hustlers Podcast - Episode 3: Estimated Taxes 101

Hosted by: Aaron Siegel, Tax Advisor and Founder, Thrive Tax Solutions

Episode Summary:

In this episode, Aaron Siegel demystifies the concept of estimated taxes, providing crucial insights for small business owners, investors, and anyone new to handling taxes without automatic withholding. This episode is packed with practical advice to help you navigate estimated tax payments and avoid penalties.

Key Topics Covered:

1. Introduction to Estimated Taxes:

   • Understanding the U.S. tax system as a pay-as-you-go model.
   • The need for estimated tax payments for self-employed individuals and investors.

2. Who Should Pay Estimated Taxes:

   • Criteria for paying estimated taxes.
   • Using W-2 withholdings to manage additional income tax liabilities.

3. Understanding Penalties and Methods:

   • The conditions under which estimated tax payment penalties apply.
   • The two methods for determining estimated taxes: Current Year and Prior Year.

4. Strategies for Calculating Estimated Taxes:

   • How to choose between the Current Year and Prior Year method.
   • Calculating prior year tax for estimated payments.

5. Estimated Tax Payment Due Dates:

   • Important deadlines for making estimated tax payments.
   • Why keeping track of due dates is essential.

6. How to Pay Your Estimated Taxes:

   • Various methods to make estimated tax payments, including online and traditional methods.

7. Consequences of Not Paying Estimated Taxes:

   • Understanding the penalties for underpayment.
   • The impact of current interest rates on penalties.

8. Annualized Income Installment Method:

   • How this method can benefit those with irregular income or unexpected capital gains.

Conclusion:

• Recap and advice on making estimated tax payments and minimizing penalties.
• Encouragement to seek professional advice for specific situations.

Contact Information:

• Social Media: @TrustYourTaxes
• Email: hi@taxsmarthustlers.show
• Website: taxsmarthustlers.show

Leave reviews, spread the word, and tune in for future episodes focused on strategies to save money on taxes.

Disclaimer: This podcast provides educational information only and should not be considered as professional tax advice.