Listener Q&A with Mike Jesowshek CPA (4/17/2024)

On this Podcast we answer listener questions! If you have a question you would like discussed on a future episode, submit it now!

1. Go to www.TaxSavingsPodcsat.com
2. Click Podcast 
3. Scroll to the Bottom and Submit Your Question

You never know, your question may be on the next Q&A session. Below are today's questions, tune into our Podcast to hear the answers!

Kelly: Can you hire an older child to watch younger children in order for you to work at your business?

John: Does the HSA "high-deductible" requirement apply to the deductible for in-network services or out-of-network services? I would qualify if out of network, but am just below the in-network threshold.

 Mike: My wife and I purchased a preschool with owner financing and I was wondering how that can be expensed through the business? Is it goodwill or a loan payable or neither or something else? Any help would be greatly appreciated.

Curtis: How can I rent equipment I personally own to my business? I am a sole member LLC. For example, if I need a generator for a day to use to collect water samples in the field, can I use my personal generator and charge a fair price back to the business. Do I send my business an invoice? Thank you, love the podcast. 

Anonymous Facebook Group Member: ​​As an S-Corp, can I look at what I made last year, pick an amount as salary, and count the rest as a distribution? So sorry if this question seems dumb... I'm really trying to learn all I can! Thanks!

Jaclyn: I just filled my taxes for 2023 and just received a 1099-K from my processing system for 2022. All of the sales/income on that form was already reported, for 2022 taxes, so will this form effect anything now?

Danielle: This question concerns tracking business miles. I have been told so many different things that I don’t know what to believe at this point. I have a tutoring company and I regularly travel to my students. Do I track miles round trip, or am I only allowed to track from my residence to theirs?

Anonymous Facebook Group Member: Could someone recommend the best/easiest way to run payroll for my S Corp? Currently a Sole Prop but income is crossing $500k this year and I need to run payroll to avoid some of the FICA taxes. Any suggestions on best software to use? It would only be myself that I'd have to do payroll for. TIA!

Kevin: My spouse and I co-own a business. We recently took a three day, each way road trip. We met with a client when we got to our destination, and both worked on the way down (me taking client phone calls and her scheduling appointments and responding to emails.)
How much of our lodging, meals and other non-entertainment trip would be deductible? The primary purpose of the trip was to visit my client.

Anonymous Facebook Group Member: I have a single-member LLC with no employees. I contracted an off-shore (out of the US) freelancer to do some IT remote job and paid him via wire transfer. What would be the correct category to label this deduction? I’m planning to use Turbotax to file. Note: I already obtained the required W8 form.

John: This is my first year in business. Me and my wife started a mobile bbq business. My question for my expenses is as follows. I saved all receipts for food, supplies, equipment, marketing, vehicle expenses. Can I claim all of this as itemized deductions. I also use my cellphone for the business is part of that a deduction as well? What about business insurance I pay for monthly? Is that also a deduction?any help with this would be greatly appreciated.

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