1 00:00:00,200 --> 00:00:02,800 Speaker 1: Welcome to How the Money. I'm Joel and I am 2 00:00:02,840 --> 00:00:06,520 Speaker 1: Matt and today we're talking straightforward advice to lower your 3 00:00:06,559 --> 00:00:28,800 Speaker 1: tax bill with Shannon Weinstein. Yeah, our guest today is 4 00:00:28,840 --> 00:00:32,360 Speaker 1: Shannon Weinstein. Shannon is a c p A. She's a coach. 5 00:00:32,479 --> 00:00:35,159 Speaker 1: She's a mentor for small business owners who want more 6 00:00:35,200 --> 00:00:39,040 Speaker 1: perspective and less paperwork when it comes to their finances. 7 00:00:39,040 --> 00:00:44,000 Speaker 1: Her company, Financial Solutions offers tax strategy and fractional CFO 8 00:00:44,080 --> 00:00:47,640 Speaker 1: services delivered from the heart of a teacher who values 9 00:00:47,840 --> 00:00:53,080 Speaker 1: connection and authenticity and Shannon's real life, relatable examples makes 10 00:00:53,200 --> 00:00:57,160 Speaker 1: financial just the finances of business less daunting so that 11 00:00:57,200 --> 00:01:00,240 Speaker 1: you can focus on serving your customers and making more money. 12 00:01:00,720 --> 00:01:03,040 Speaker 1: She is the host of the Keep What You Earned 13 00:01:03,160 --> 00:01:08,080 Speaker 1: podcast and a frequent speaker in masterminds and business communities. 14 00:01:08,319 --> 00:01:10,240 Speaker 1: We are excited to have her join us today. So 15 00:01:10,360 --> 00:01:12,880 Speaker 1: Shan and thank you for coming on the podcast. Thank 16 00:01:12,920 --> 00:01:15,119 Speaker 1: you guys for having me. I appreciate it. Shanna, We're 17 00:01:15,120 --> 00:01:17,440 Speaker 1: glad to have you along. And the first question we 18 00:01:17,440 --> 00:01:20,800 Speaker 1: ask everybody who comes on the podcast is what do 19 00:01:20,880 --> 00:01:23,360 Speaker 1: they like to spend money on for fun? Because Matt 20 00:01:23,360 --> 00:01:25,640 Speaker 1: and I we like to drink craft beer and we 21 00:01:25,720 --> 00:01:28,160 Speaker 1: have one basically every episode. We're having one right now. Yeah, 22 00:01:28,200 --> 00:01:30,240 Speaker 1: at something we splur John in here now while trying 23 00:01:30,280 --> 00:01:32,360 Speaker 1: to save it invest well, So yeah, what's your craft 24 00:01:32,400 --> 00:01:36,600 Speaker 1: beer equivalent? My craft beer equivalent, I would say I 25 00:01:36,640 --> 00:01:38,680 Speaker 1: believe that we help spend money based on our values 26 00:01:38,760 --> 00:01:41,840 Speaker 1: and one of my most prominent ones as convenience. So 27 00:01:41,959 --> 00:01:44,640 Speaker 1: I will pretty much cut a check to anyone willing 28 00:01:44,680 --> 00:01:46,560 Speaker 1: to give me more time back. And one of my 29 00:01:46,600 --> 00:01:50,240 Speaker 1: biggest ones is my cleaning lady. Okay, what kind of 30 00:01:50,280 --> 00:01:53,200 Speaker 1: cleanings are we talking about? We're talking weekly twice a month. 31 00:01:53,280 --> 00:01:55,480 Speaker 1: This is a monthly thing. We have someone come by 32 00:01:55,520 --> 00:01:58,440 Speaker 1: weekly for the house. We have a house that gathers 33 00:01:58,440 --> 00:02:01,720 Speaker 1: a lot of dust, so we uh, we love to 34 00:02:01,720 --> 00:02:03,560 Speaker 1: have somebody come over and just take that off of 35 00:02:03,560 --> 00:02:05,880 Speaker 1: our plates. And I would hire a private chef if 36 00:02:05,920 --> 00:02:08,239 Speaker 1: I could. That's next on my list of like knowing 37 00:02:08,280 --> 00:02:10,680 Speaker 1: that I feel like I've made it is personal massuge. 38 00:02:10,760 --> 00:02:15,920 Speaker 1: Number three is that every we actually we actually have somebody, 39 00:02:16,000 --> 00:02:18,040 Speaker 1: We actually have a personal miss who's that comes down 40 00:02:18,040 --> 00:02:20,320 Speaker 1: in Costa Rica where we spend half of our time. 41 00:02:20,440 --> 00:02:23,399 Speaker 1: So we've checked that off the list. Yet I feel 42 00:02:23,440 --> 00:02:29,400 Speaker 1: like I've living the wrong life right now, although I 43 00:02:29,440 --> 00:02:31,720 Speaker 1: also to have a house that gathers a lot of dust, 44 00:02:31,840 --> 00:02:33,480 Speaker 1: so I feel like I'm I'm off, you know, I'm 45 00:02:33,480 --> 00:02:35,120 Speaker 1: pointed in the right direction if I'm trying to be 46 00:02:35,160 --> 00:02:37,840 Speaker 1: like Shannon here. Thanks for sharing that. And before we 47 00:02:37,880 --> 00:02:39,840 Speaker 1: hit record, we talked a little bit about Costa Rica, 48 00:02:39,880 --> 00:02:41,680 Speaker 1: shann and you want to quickly share about what you'll 49 00:02:41,680 --> 00:02:43,799 Speaker 1: have got going on down there. Yeah, So, I mean, 50 00:02:44,240 --> 00:02:46,680 Speaker 1: I practice what I preach and I believe in, you know, 51 00:02:46,919 --> 00:02:50,000 Speaker 1: having a job in a business that's location independent. I 52 00:02:50,000 --> 00:02:53,560 Speaker 1: wish that for everybody. And luckily, what the pandemic has 53 00:02:53,600 --> 00:02:55,480 Speaker 1: done for me and my business has enabled me to, 54 00:02:56,160 --> 00:02:58,600 Speaker 1: you know, be able to run my business completely virtually 55 00:02:58,680 --> 00:03:01,880 Speaker 1: from anywhere I can get an Internet connection. And luckily 56 00:03:01,960 --> 00:03:03,680 Speaker 1: there's I mean, there's a whole reason why we love 57 00:03:03,720 --> 00:03:06,079 Speaker 1: Costa Rica. But my husband and I decided to buy 58 00:03:06,080 --> 00:03:08,600 Speaker 1: a second home in Costa Rica during the pandemic. We 59 00:03:08,720 --> 00:03:11,359 Speaker 1: spent about eight months of last year down there and 60 00:03:11,800 --> 00:03:14,520 Speaker 1: really became part of the community. Met people, made friends, 61 00:03:14,960 --> 00:03:17,720 Speaker 1: were able to go out and um, it really helps 62 00:03:17,720 --> 00:03:19,959 Speaker 1: that the restaurants and bars don't have windows and doors 63 00:03:19,960 --> 00:03:21,520 Speaker 1: so that you don't have to wear your mask all 64 00:03:21,520 --> 00:03:25,440 Speaker 1: the time. Everything's open air. Yeah. Well, yeah, I think 65 00:03:25,440 --> 00:03:28,600 Speaker 1: before the we started recording, I think Shannon might have 66 00:03:28,600 --> 00:03:32,200 Speaker 1: convinced you and me, Matt, consider it. We'll see what 67 00:03:32,200 --> 00:03:34,240 Speaker 1: happened me and just to live somewhere where you don't 68 00:03:34,520 --> 00:03:37,360 Speaker 1: need to have windows and doors, like that's how perfect 69 00:03:37,360 --> 00:03:39,040 Speaker 1: the weather is. That does sound nice? Sounds like a 70 00:03:39,120 --> 00:03:42,200 Speaker 1: great climate to live in. Yeah, and Shannon, uh, let's 71 00:03:42,200 --> 00:03:44,120 Speaker 1: get into it. According to your site, you became a 72 00:03:44,160 --> 00:03:47,119 Speaker 1: c p A because you lost a bet with your dad. 73 00:03:47,240 --> 00:03:49,200 Speaker 1: So I kind of wanna, kind of want to hear 74 00:03:49,240 --> 00:03:52,040 Speaker 1: that story. It seems like maybe poor reasoning to make 75 00:03:52,040 --> 00:03:54,160 Speaker 1: a lifelong career choice. But yeah, can you fee listening 76 00:03:54,200 --> 00:03:56,800 Speaker 1: on the details? Oh totally. But I'm so grateful for 77 00:03:56,880 --> 00:04:01,160 Speaker 1: it because I'm so competitive and I I stand behind 78 00:04:01,200 --> 00:04:03,920 Speaker 1: my words. So what my dad, my dad was a 79 00:04:03,920 --> 00:04:06,040 Speaker 1: CPA by the way, and growing up he used to 80 00:04:06,160 --> 00:04:09,520 Speaker 1: nag me all the time like typical father daughter, like 81 00:04:09,640 --> 00:04:11,600 Speaker 1: young girl. And he's like, Shannon, you want to be 82 00:04:11,600 --> 00:04:12,720 Speaker 1: a cp when you grew up, you want to be 83 00:04:12,720 --> 00:04:16,240 Speaker 1: an accountant. I'm like, no, what is that? Whatever you want? 84 00:04:16,240 --> 00:04:18,279 Speaker 1: I don't want because whatever that is must be boring. 85 00:04:18,360 --> 00:04:21,560 Speaker 1: Like vegetables and things I should be doing. Like you're boring. 86 00:04:22,000 --> 00:04:23,920 Speaker 1: You just have a big bookshelf downstairs and you spend 87 00:04:23,920 --> 00:04:26,359 Speaker 1: all your time in the basement. No thank you, Um, 88 00:04:26,400 --> 00:04:33,080 Speaker 1: I don't see you from February to April, right, Like, 89 00:04:33,120 --> 00:04:35,680 Speaker 1: none of this sounded attractive to me, and nobody becomes 90 00:04:35,720 --> 00:04:40,520 Speaker 1: an accountant on purpose, honestly. So so what happened was, Um, 91 00:04:40,560 --> 00:04:43,320 Speaker 1: I went to high school where they offered this accounting class. 92 00:04:43,560 --> 00:04:45,800 Speaker 1: I was very lucky. Looking back at this, I'm going 93 00:04:45,800 --> 00:04:48,880 Speaker 1: I was lucky. We had this class um right after typing, 94 00:04:50,480 --> 00:04:52,360 Speaker 1: which ages me. You know how a punch of the 95 00:04:52,400 --> 00:04:55,120 Speaker 1: keys on the keyboard. Now, let's talk about accounting software 96 00:04:55,640 --> 00:04:57,880 Speaker 1: with it was even accounting software. This this stuff was 97 00:04:57,920 --> 00:04:59,880 Speaker 1: by hand you guys, like this was this was in 98 00:05:00,000 --> 00:05:04,520 Speaker 1: I haven't married it too yet something. Yeah, So we 99 00:05:04,520 --> 00:05:07,240 Speaker 1: were we would we would do the books for this 100 00:05:07,279 --> 00:05:10,400 Speaker 1: company right during the course of the year. And my 101 00:05:10,480 --> 00:05:12,039 Speaker 1: dad said, I want you to take this class because 102 00:05:12,040 --> 00:05:14,960 Speaker 1: it fulfills one of your requirements for you to graduate, 103 00:05:15,360 --> 00:05:17,440 Speaker 1: and if you hate it, I'll never ask you to 104 00:05:17,480 --> 00:05:19,760 Speaker 1: be an accountant again. Which I was like, Okay, I 105 00:05:19,839 --> 00:05:22,520 Speaker 1: win big time. If I went to my dad off 106 00:05:22,520 --> 00:05:26,600 Speaker 1: my back starting tonight that I was motivated. So right 107 00:05:26,640 --> 00:05:29,720 Speaker 1: after that he said, if if you hate it, I'll 108 00:05:29,760 --> 00:05:31,359 Speaker 1: never bother you again. If you love it, you have 109 00:05:31,440 --> 00:05:34,360 Speaker 1: to major in it. And about two weeks in they 110 00:05:34,360 --> 00:05:37,960 Speaker 1: had one of those parent teacher conferences and my teacher 111 00:05:38,040 --> 00:05:40,559 Speaker 1: was like, Shannon loves this. She has over a hundred average. 112 00:05:40,560 --> 00:05:42,720 Speaker 1: I'm bumping her to Honors accounting with the seniors. This 113 00:05:42,800 --> 00:05:45,640 Speaker 1: is like a breeze for her. And he talked to 114 00:05:45,680 --> 00:05:47,960 Speaker 1: me and I said, all right, like, I actually really 115 00:05:48,000 --> 00:05:51,719 Speaker 1: liked this. You like, I hate to admit that, but 116 00:05:51,839 --> 00:05:54,960 Speaker 1: you were Yeah, you have no idea how hard it 117 00:05:55,000 --> 00:05:57,080 Speaker 1: was for me to admit that. But yeah, he was right, 118 00:05:57,200 --> 00:05:59,440 Speaker 1: I actually loved it. But he framed it and this 119 00:05:59,520 --> 00:06:01,279 Speaker 1: is where I that's my my heart of a teacher 120 00:06:01,360 --> 00:06:04,080 Speaker 1: thing is he framed it like, this is a language 121 00:06:04,080 --> 00:06:05,800 Speaker 1: no one else speaks, and if you want to make 122 00:06:05,839 --> 00:06:08,000 Speaker 1: an impact, like he knew I loved Spanish and language, 123 00:06:08,040 --> 00:06:10,880 Speaker 1: that's what I really wanted to do. And um, he said, 124 00:06:10,880 --> 00:06:12,440 Speaker 1: if you really want to learn a language and teach 125 00:06:12,440 --> 00:06:16,279 Speaker 1: to other people, this is it. Well, so you mentioned teaching, Shannon, 126 00:06:16,800 --> 00:06:19,320 Speaker 1: So yeah, you figured out that you love accounting that's great, 127 00:06:19,839 --> 00:06:22,479 Speaker 1: But yeah, you also love teaching. How did you realize 128 00:06:22,480 --> 00:06:24,160 Speaker 1: that you you love teaching? And then how did you 129 00:06:24,200 --> 00:06:27,800 Speaker 1: find a way to combine those two interests. I love teaching. 130 00:06:27,839 --> 00:06:29,840 Speaker 1: I just I don't know. I've always been kind of 131 00:06:30,520 --> 00:06:33,880 Speaker 1: gravitating towards finding a way to educate and speak. I 132 00:06:33,960 --> 00:06:36,680 Speaker 1: was a tutor, um. I taught fitness classes for eight 133 00:06:36,720 --> 00:06:39,279 Speaker 1: years actually, and I fell in love with that too, 134 00:06:39,320 --> 00:06:41,640 Speaker 1: being it kind of helped me get over my fear 135 00:06:41,680 --> 00:06:43,880 Speaker 1: of speaking or being center stage or being the center 136 00:06:43,920 --> 00:06:46,840 Speaker 1: of attention, which I generally hate. But when you can 137 00:06:46,880 --> 00:06:49,560 Speaker 1: command a room and you can say like eight more 138 00:06:49,600 --> 00:06:52,000 Speaker 1: and they all have to do it, it's sound of fun. 139 00:06:52,600 --> 00:06:56,840 Speaker 1: Uh right, it's a it's a big power grabs. So 140 00:06:57,600 --> 00:06:59,520 Speaker 1: and if you can say like jump higher and they do, 141 00:06:59,640 --> 00:07:01,200 Speaker 1: it's just well, this is fun. You know. It's like 142 00:07:01,240 --> 00:07:03,520 Speaker 1: a Simon says, where everyone has to do what you say. 143 00:07:04,400 --> 00:07:07,040 Speaker 1: But yeah, no, I just enjoyed teaching and seeing transformation 144 00:07:07,120 --> 00:07:10,160 Speaker 1: and seeing people better their lives because of something I 145 00:07:10,200 --> 00:07:12,920 Speaker 1: did or said and having some type of impact on that. 146 00:07:13,000 --> 00:07:16,880 Speaker 1: It's it's really like the ultimate reward. Yeah, well, hey, 147 00:07:17,320 --> 00:07:18,920 Speaker 1: I love that you're doing this, and I feel like 148 00:07:19,000 --> 00:07:21,640 Speaker 1: your your mission and your heart for teaching comes through 149 00:07:21,680 --> 00:07:23,840 Speaker 1: and everything that you do. Well, let's let's get into 150 00:07:23,920 --> 00:07:26,480 Speaker 1: kind of some questions for our audience who who like 151 00:07:26,600 --> 00:07:28,480 Speaker 1: they're like, Okay, if you've got the heart of the 152 00:07:28,480 --> 00:07:30,560 Speaker 1: teacher and the knowledge of a tax professional, I've got 153 00:07:30,560 --> 00:07:32,960 Speaker 1: some questions for you. And you know, we are basically 154 00:07:33,000 --> 00:07:35,400 Speaker 1: like a month away from from the tax filing deadline. 155 00:07:35,760 --> 00:07:38,480 Speaker 1: So for those of us who haven't filed our taxes yet, 156 00:07:38,720 --> 00:07:41,360 Speaker 1: myself included what do we need to know before we 157 00:07:41,360 --> 00:07:43,240 Speaker 1: sit down and then you know, we actually attempt to 158 00:07:43,440 --> 00:07:46,360 Speaker 1: get started. Well, first of all, I know that there's 159 00:07:46,360 --> 00:07:49,400 Speaker 1: a lot of folks that are listening who are just 160 00:07:49,480 --> 00:07:52,640 Speaker 1: dreading the idea of taxes, like like probably already trying 161 00:07:52,640 --> 00:07:55,480 Speaker 1: to hit skip, Like I don't I want to know. 162 00:07:55,520 --> 00:07:57,080 Speaker 1: Just give me the tips, give me the stuff. Like, 163 00:07:57,400 --> 00:07:59,880 Speaker 1: but here's the thing with a tax return, the taxes 164 00:07:59,920 --> 00:08:01,720 Speaker 1: are knows nothing more than a story of how your 165 00:08:01,720 --> 00:08:05,200 Speaker 1: money spent the year, and we are the ones publishing 166 00:08:05,240 --> 00:08:07,480 Speaker 1: that for you. You can have a c p A 167 00:08:07,640 --> 00:08:10,520 Speaker 1: Who just publishes it. You could have someone who actually 168 00:08:10,560 --> 00:08:13,160 Speaker 1: co authors it with you during the year, right, and 169 00:08:13,320 --> 00:08:16,280 Speaker 1: you have this huge book that tells the story. Each 170 00:08:16,320 --> 00:08:17,880 Speaker 1: of the different ways that you make money is just 171 00:08:17,960 --> 00:08:20,400 Speaker 1: a chapter in that story, and you just have to 172 00:08:20,440 --> 00:08:22,880 Speaker 1: turn that in every year. It really is that simple. 173 00:08:23,160 --> 00:08:26,160 Speaker 1: It's not meant to be this daunting, you know, haunting 174 00:08:26,200 --> 00:08:29,040 Speaker 1: thing um. And there's plenty of people who can help you. 175 00:08:29,120 --> 00:08:31,600 Speaker 1: So my my best advice just getting started with it 176 00:08:31,640 --> 00:08:35,480 Speaker 1: is just understand that it's a lot less complicated than 177 00:08:35,520 --> 00:08:37,440 Speaker 1: we typically make it out to be, and you have 178 00:08:37,600 --> 00:08:40,840 Speaker 1: to find a professional who's willing to explain and understands 179 00:08:40,880 --> 00:08:42,959 Speaker 1: what you do. And it makes me think about like 180 00:08:43,000 --> 00:08:45,240 Speaker 1: software updates on my computer, like I am the king 181 00:08:45,360 --> 00:08:48,839 Speaker 1: of like remind me later. But what you're saying is 182 00:08:48,880 --> 00:08:50,320 Speaker 1: that we shouldn't be doing that when it comes to 183 00:08:50,320 --> 00:08:53,400 Speaker 1: our taxes. Should something else I'm thinking of too, Like, 184 00:08:53,440 --> 00:08:55,080 Speaker 1: are there any specific things that we need to keep 185 00:08:55,080 --> 00:08:58,920 Speaker 1: in mind considering all of the unprocessed returns from last year, 186 00:08:59,000 --> 00:09:01,599 Speaker 1: all the delays that we've heard about the I R 187 00:09:01,720 --> 00:09:03,199 Speaker 1: S experiencing. What do we need to keep in mind 188 00:09:03,240 --> 00:09:06,040 Speaker 1: as far as that goes? Oh yeah, so it's a 189 00:09:06,120 --> 00:09:07,719 Speaker 1: huge traffic jam right now and the I r S 190 00:09:07,760 --> 00:09:09,440 Speaker 1: when it comes to paperwork. I just talked to the 191 00:09:09,480 --> 00:09:11,199 Speaker 1: I r S. U talked for a few people in 192 00:09:11,240 --> 00:09:13,600 Speaker 1: different offices over the past couple of months, and they've 193 00:09:13,600 --> 00:09:16,439 Speaker 1: got box trucks with mail, like five box trucks poked 194 00:09:16,440 --> 00:09:18,800 Speaker 1: outside that no one is going through because they don't 195 00:09:18,800 --> 00:09:21,560 Speaker 1: have the help. And these are all from yeah, they're 196 00:09:21,600 --> 00:09:24,520 Speaker 1: all from back years. They're so far behind. And by 197 00:09:24,520 --> 00:09:27,400 Speaker 1: the way, if anyone, I'm just gonna dispel the myth 198 00:09:27,480 --> 00:09:29,440 Speaker 1: right now, if anyone thinks that the I R S 199 00:09:29,480 --> 00:09:35,040 Speaker 1: gave us extended deadlines to help us. No, they they 200 00:09:35,040 --> 00:09:38,080 Speaker 1: were late on their homework and they wanted to extended 201 00:09:38,120 --> 00:09:40,800 Speaker 1: deadlines because they knew they couldn't handle the influx. These 202 00:09:40,800 --> 00:09:43,720 Speaker 1: guys are operating with like the same printers and copiers 203 00:09:43,760 --> 00:09:47,160 Speaker 1: that we saw in office space we are, and they're 204 00:09:47,200 --> 00:09:51,360 Speaker 1: doing fax machines. So understand that they don't have instant technology. 205 00:09:51,640 --> 00:09:53,679 Speaker 1: You know, they're they're working it's like the d m 206 00:09:53,760 --> 00:09:56,720 Speaker 1: V or any other state agency or federal agency. So 207 00:09:56,760 --> 00:09:58,439 Speaker 1: we got to like throw them a bone and say, well, 208 00:09:58,440 --> 00:10:00,160 Speaker 1: they're not working with a whole lot to pro this 209 00:10:00,240 --> 00:10:02,560 Speaker 1: this stuff. So there's a ton of delays. So my 210 00:10:02,600 --> 00:10:04,680 Speaker 1: advice is get your stuff done as soon as possible 211 00:10:05,000 --> 00:10:06,200 Speaker 1: because the last thing you want to do is be 212 00:10:06,240 --> 00:10:09,320 Speaker 1: at the end of the line when the rush happens. Yeah, 213 00:10:09,559 --> 00:10:12,720 Speaker 1: she's talking to you, Joel. Well. And and something else, 214 00:10:12,800 --> 00:10:15,040 Speaker 1: right is is that you you don't want to submit 215 00:10:15,040 --> 00:10:17,480 Speaker 1: a paper return. You want to file online. And you 216 00:10:17,480 --> 00:10:19,680 Speaker 1: you also want to make sure you offer direct deposit 217 00:10:19,720 --> 00:10:23,160 Speaker 1: because if you, if you know, deviate from from that plan, 218 00:10:23,440 --> 00:10:25,840 Speaker 1: you could be waiting an awful long time, you know, 219 00:10:25,920 --> 00:10:29,200 Speaker 1: to have your return process or to receive a refund. Right, Yeah, 220 00:10:29,320 --> 00:10:31,319 Speaker 1: the file is usually faster, and if you give direct 221 00:10:31,320 --> 00:10:33,600 Speaker 1: deposit information, there's a blessing and occurse to that. Right, 222 00:10:33,600 --> 00:10:36,000 Speaker 1: you'll get your refund faster because they can do direct deposit. 223 00:10:36,400 --> 00:10:38,680 Speaker 1: But then if you don't pay your taxes later, they 224 00:10:38,760 --> 00:10:42,480 Speaker 1: know where your money is. Got you got you? Okay? Well, 225 00:10:42,760 --> 00:10:44,679 Speaker 1: and let's talk about you. You mentioned this just a 226 00:10:44,679 --> 00:10:47,240 Speaker 1: little bit. You talked about you know, you're obviously you 227 00:10:47,280 --> 00:10:50,160 Speaker 1: are a tax professional, and so you're you're probably biased 228 00:10:50,200 --> 00:10:52,319 Speaker 1: when I ask you this question, but I still want 229 00:10:52,320 --> 00:10:54,680 Speaker 1: to hear your thoughts on it, because, um, you can 230 00:10:55,240 --> 00:10:57,839 Speaker 1: many people in the United States can file can e 231 00:10:57,920 --> 00:11:00,960 Speaker 1: file for free online. There's the i R Free file website. 232 00:11:01,200 --> 00:11:03,480 Speaker 1: You can we we've we've talked about on the on 233 00:11:03,559 --> 00:11:07,480 Speaker 1: the podcast, how Square now has a free tax filing 234 00:11:07,600 --> 00:11:11,600 Speaker 1: software option which looks pretty nice. You can pay for software, 235 00:11:11,640 --> 00:11:14,680 Speaker 1: you can higher a tax professional where you live. Like, 236 00:11:14,760 --> 00:11:17,559 Speaker 1: how do you think about how everyday folks should think 237 00:11:17,600 --> 00:11:20,760 Speaker 1: about where and how and who they use to help 238 00:11:20,760 --> 00:11:23,240 Speaker 1: them file their taxes. That's a great question because there's 239 00:11:23,240 --> 00:11:25,560 Speaker 1: so many more options these days, and it's really hard 240 00:11:25,559 --> 00:11:27,920 Speaker 1: to discern which is the best one for you. I 241 00:11:27,960 --> 00:11:29,800 Speaker 1: would say, if you have a really simple return, which 242 00:11:29,840 --> 00:11:32,320 Speaker 1: just W two's, you could easily file through any type 243 00:11:32,320 --> 00:11:35,440 Speaker 1: of service, and you could use the softwares, you could 244 00:11:35,559 --> 00:11:38,880 Speaker 1: use the free services that's really made for simple returns. 245 00:11:39,160 --> 00:11:42,000 Speaker 1: But I'll say this, once you own a business, you're 246 00:11:42,040 --> 00:11:45,040 Speaker 1: out of the simplicity. Like you've gone from like you've 247 00:11:45,040 --> 00:11:47,920 Speaker 1: gone through business puberty. Okay, you need the adult version 248 00:11:48,440 --> 00:11:52,360 Speaker 1: of everything. We're not yeah, we're not going. We're not 249 00:11:52,360 --> 00:11:54,960 Speaker 1: going to our pediatrician anymore. We're not going like you've 250 00:11:54,960 --> 00:11:58,240 Speaker 1: got to. You've got an upgrade, especially when it comes 251 00:11:58,240 --> 00:12:00,600 Speaker 1: to strategy. So if you want to save money taxes, 252 00:12:01,160 --> 00:12:04,040 Speaker 1: then you need somebody who's actually gonna roll up their 253 00:12:04,040 --> 00:12:07,000 Speaker 1: sleeves look at your stuff. And dig in because all 254 00:12:07,040 --> 00:12:09,760 Speaker 1: of the formulas and algorithms in the world with software 255 00:12:10,200 --> 00:12:12,840 Speaker 1: can't necessarily understand the whole big picture of what you 256 00:12:12,880 --> 00:12:15,760 Speaker 1: actually do on a daily basis. So I think that 257 00:12:15,880 --> 00:12:18,120 Speaker 1: it's really important to have a professional with their judgment 258 00:12:18,200 --> 00:12:22,080 Speaker 1: on your side, especially because we can also help you 259 00:12:22,120 --> 00:12:24,160 Speaker 1: react to I R. S letters, or we can help 260 00:12:24,200 --> 00:12:27,240 Speaker 1: you navigate around the likelihood of an audit or support 261 00:12:27,240 --> 00:12:29,400 Speaker 1: you if you do get audited. So I think that 262 00:12:29,440 --> 00:12:31,120 Speaker 1: there's a lot to be said about the value of 263 00:12:31,120 --> 00:12:34,199 Speaker 1: a professional. Um. Of course I'm biased, of course I am, 264 00:12:34,280 --> 00:12:36,280 Speaker 1: But it's why I'm in this profession because I want 265 00:12:36,280 --> 00:12:38,800 Speaker 1: to help people navigate all that. Yeah, And it's less 266 00:12:38,800 --> 00:12:41,559 Speaker 1: about just taking something off your plate, off your to 267 00:12:41,640 --> 00:12:43,240 Speaker 1: do list that you don't want to do yourself, and 268 00:12:43,280 --> 00:12:45,839 Speaker 1: it's more like partnering with with with someone who has 269 00:12:46,040 --> 00:12:48,679 Speaker 1: special insight and knowledge, especially if you know, I think, 270 00:12:48,720 --> 00:12:50,600 Speaker 1: like you said, you're right, if you have this very 271 00:12:50,679 --> 00:12:54,400 Speaker 1: very simple return d I Y. You know, the likelihood 272 00:12:54,440 --> 00:12:56,240 Speaker 1: that at tax pro is going to be able to 273 00:12:56,280 --> 00:13:00,200 Speaker 1: save you boockoos of dollars on your taxes is you know, 274 00:13:00,400 --> 00:13:02,839 Speaker 1: lessoned in a huge degree. But you're you're really paying 275 00:13:02,880 --> 00:13:05,280 Speaker 1: for a lot of specialized knowledge and for hopefully the 276 00:13:05,320 --> 00:13:08,640 Speaker 1: ability the insights and the ability to you know, find 277 00:13:08,679 --> 00:13:12,360 Speaker 1: some missing money when it comes to filing taxes that 278 00:13:12,440 --> 00:13:16,160 Speaker 1: you didn't know about exactly. And taxes are basically this 279 00:13:16,200 --> 00:13:18,360 Speaker 1: giant board game that we were all fate forced to 280 00:13:18,360 --> 00:13:20,600 Speaker 1: play as adults. I always compare it to this, like 281 00:13:20,760 --> 00:13:24,440 Speaker 1: it's like all of us we love board games over here, 282 00:13:24,520 --> 00:13:26,520 Speaker 1: so all of us sat down to a game of 283 00:13:26,559 --> 00:13:29,120 Speaker 1: Monopoly were forced to play. Some people just go around 284 00:13:29,120 --> 00:13:31,640 Speaker 1: and past go every year, and that's fine. Some people 285 00:13:31,720 --> 00:13:34,440 Speaker 1: want to win. And here's the thing. There's a few 286 00:13:34,440 --> 00:13:36,680 Speaker 1: of us who learned the rules and went to a 287 00:13:37,080 --> 00:13:40,800 Speaker 1: for your degree to study the rules so that we 288 00:13:40,840 --> 00:13:43,200 Speaker 1: could help you win. And that's exactly what the how 289 00:13:43,240 --> 00:13:45,240 Speaker 1: you should look at this. I love it, Yeah, I 290 00:13:45,040 --> 00:13:47,240 Speaker 1: love how. It's like your sangel, it's less about just 291 00:13:47,240 --> 00:13:48,840 Speaker 1: someone just to do it for you, but somebody to 292 00:13:48,920 --> 00:13:52,480 Speaker 1: come alongside you and provide some specific insight into your situation, 293 00:13:52,520 --> 00:13:54,600 Speaker 1: like you're saying, shaneon And that's what we're gonna spend 294 00:13:54,600 --> 00:13:56,680 Speaker 1: the rest of our our episode talking about, like some 295 00:13:56,760 --> 00:13:59,520 Speaker 1: of the different ways that we can pay as little 296 00:13:59,520 --> 00:14:02,520 Speaker 1: as possible legally to the I R S. But real 297 00:14:02,559 --> 00:14:04,760 Speaker 1: quick if if you know, if someone say they do 298 00:14:04,840 --> 00:14:07,599 Speaker 1: have a business and hiring a tax professional is the 299 00:14:07,679 --> 00:14:10,480 Speaker 1: right move, what are your suggestions for finding UH and 300 00:14:10,559 --> 00:14:12,880 Speaker 1: for hiring the right one, Like, do you have some 301 00:14:13,040 --> 00:14:16,080 Speaker 1: questions that maybe folks should out there should ask? Oh? 302 00:14:16,120 --> 00:14:18,959 Speaker 1: Absolutely so. The first thing, first and foremost is I 303 00:14:19,400 --> 00:14:21,640 Speaker 1: mostly deal with business owners, So I always want my 304 00:14:21,680 --> 00:14:24,280 Speaker 1: business owners to find someone who knows their industry and 305 00:14:24,360 --> 00:14:27,240 Speaker 1: understands other businesses. Like there's you want to find folks 306 00:14:27,280 --> 00:14:30,480 Speaker 1: who work with similar profiles to you and have helped them, 307 00:14:30,480 --> 00:14:35,520 Speaker 1: say in taxes. Um, I think that we over emphasize 308 00:14:35,520 --> 00:14:38,520 Speaker 1: the importance of having someone local. It does help that 309 00:14:38,600 --> 00:14:42,320 Speaker 1: they understand your states, you know states taxes, but at 310 00:14:42,320 --> 00:14:43,800 Speaker 1: the end of the day, I actually think it's a 311 00:14:43,840 --> 00:14:47,480 Speaker 1: higher priority that you understand your federal taxes and your 312 00:14:47,520 --> 00:14:50,040 Speaker 1: business taxes and everything else. Like if you have somebody 313 00:14:50,040 --> 00:14:52,520 Speaker 1: who really knows your industry, they can do the state 314 00:14:52,560 --> 00:14:55,400 Speaker 1: tax forms. You can actually work with anyone nationwide. There's 315 00:14:55,400 --> 00:14:57,760 Speaker 1: a common misunderstanding that you have to work with someone 316 00:14:57,760 --> 00:15:00,240 Speaker 1: in your state. That's not the case. That's great advice. Yeah, 317 00:15:00,240 --> 00:15:02,360 Speaker 1: you could even hire someone who I don't know, maybe 318 00:15:02,440 --> 00:15:05,840 Speaker 1: spends half their year in Costa Rica, right exactly. Yeah, 319 00:15:06,280 --> 00:15:08,520 Speaker 1: we have we have secure servers and all that stuff. 320 00:15:08,560 --> 00:15:10,680 Speaker 1: But yeah, we absolutely do. We do a how to 321 00:15:10,720 --> 00:15:14,200 Speaker 1: present virtual nationwide. Uh, I work with folks in a 322 00:15:14,240 --> 00:15:16,520 Speaker 1: whole bunch of different states. Okay, all right, Well we've 323 00:15:16,560 --> 00:15:18,640 Speaker 1: got some more questions we want to get to with you, Shannon, 324 00:15:18,680 --> 00:15:23,000 Speaker 1: including just kind of like how regular traditional employees can 325 00:15:23,040 --> 00:15:25,840 Speaker 1: save the most on their taxes and how they should 326 00:15:25,840 --> 00:15:28,080 Speaker 1: think about optimizing their taxes going forward. We'll get to 327 00:15:28,200 --> 00:15:40,000 Speaker 1: those questions and more right after this. Alright, we're back 328 00:15:40,000 --> 00:15:42,360 Speaker 1: from the break and we're talking about lowing your tax 329 00:15:42,400 --> 00:15:45,520 Speaker 1: bill with Shannon Weinstein. And Shannon, you know, you mentioned 330 00:15:45,560 --> 00:15:48,320 Speaker 1: how you specialize with with small businesses. But before we 331 00:15:48,360 --> 00:15:51,120 Speaker 1: get to that, we want to talk about, uh, some questions. 332 00:15:51,120 --> 00:15:52,840 Speaker 1: We want to ask some questions that apply to everybody 333 00:15:53,040 --> 00:15:55,240 Speaker 1: out there. And so let's talk about folks who are 334 00:15:55,280 --> 00:15:59,920 Speaker 1: traditionally employed, like in just anybody who's filing a tax return. Basically, like, 335 00:16:00,040 --> 00:16:02,920 Speaker 1: what are the most effective ways for everybody out there 336 00:16:03,000 --> 00:16:06,560 Speaker 1: to think about optimizing their taxes. So one of the 337 00:16:06,560 --> 00:16:09,240 Speaker 1: ones that comes to mind, obviously is retirement contributions that's 338 00:16:09,240 --> 00:16:11,320 Speaker 1: going to be one of the best ways that you 339 00:16:11,360 --> 00:16:15,040 Speaker 1: can actually shelter money from taxes. But the it's gonna 340 00:16:15,040 --> 00:16:18,160 Speaker 1: sound funny, but what I actually recommend employees do is 341 00:16:18,160 --> 00:16:22,600 Speaker 1: start a business. Uh. You can actually turn almost anything 342 00:16:22,600 --> 00:16:25,040 Speaker 1: into a side hustle these days, and that just opens 343 00:16:25,120 --> 00:16:27,320 Speaker 1: up so many doors for you to be able to 344 00:16:27,480 --> 00:16:30,040 Speaker 1: host a field of deductions on your tax return. M 345 00:16:30,320 --> 00:16:32,920 Speaker 1: M all right. So if you've just got let's say 346 00:16:32,960 --> 00:16:34,800 Speaker 1: you're you're like all right, started start a side hustle. 347 00:16:35,040 --> 00:16:36,880 Speaker 1: If you can make four or bucks from your side 348 00:16:36,920 --> 00:16:40,160 Speaker 1: hustle this year, what sort of opportunities open up to you? 349 00:16:40,880 --> 00:16:43,160 Speaker 1: So depending on what type of business it is. Right, So, 350 00:16:43,240 --> 00:16:45,200 Speaker 1: if you start driving for Uber, right, then like a 351 00:16:45,200 --> 00:16:48,120 Speaker 1: ton of your vehicle costs get deducted. And the key 352 00:16:48,200 --> 00:16:51,120 Speaker 1: here is taking expenses that you're already spending money on, 353 00:16:51,200 --> 00:16:53,840 Speaker 1: Like you're already buying your car, you're already making your payments, 354 00:16:53,880 --> 00:16:56,560 Speaker 1: you're already buying gas. Why not get the I R 355 00:16:56,720 --> 00:17:01,080 Speaker 1: S too, essentially not reimburse you, but to get a 356 00:17:01,080 --> 00:17:04,160 Speaker 1: ton of tax savings out of those types of expenses. 357 00:17:04,640 --> 00:17:06,919 Speaker 1: So if you are running let's say you're doing an 358 00:17:06,960 --> 00:17:10,840 Speaker 1: e commerce business or drop shipping or doing some type 359 00:17:10,840 --> 00:17:14,399 Speaker 1: of online service. You can absolutely deduct a portion of 360 00:17:14,440 --> 00:17:19,360 Speaker 1: your home through the home office deduction. You know, computers, equipment, Uh, 361 00:17:19,520 --> 00:17:23,600 Speaker 1: start a podcast, this microphone. Right, there's so many different 362 00:17:23,600 --> 00:17:26,240 Speaker 1: things that you can deduct that you know, maybe you 363 00:17:26,280 --> 00:17:28,760 Speaker 1: wouldn't have spent money on, or maybe you would have 364 00:17:28,800 --> 00:17:31,879 Speaker 1: spent money on anyway, And that's really where the magic 365 00:17:31,920 --> 00:17:34,199 Speaker 1: happens is taking money you're already spending and turning it 366 00:17:34,240 --> 00:17:37,960 Speaker 1: into tax free money. Okay, So so the I r 367 00:17:38,040 --> 00:17:41,679 Speaker 1: S treats hobbies and businesses differently, right, So, so how 368 00:17:41,680 --> 00:17:45,040 Speaker 1: does a person know whether kind of what they're endeavor 369 00:17:45,280 --> 00:17:48,280 Speaker 1: their side hustle is is considered by the I r 370 00:17:48,359 --> 00:17:51,240 Speaker 1: S a hobby or a business. I mean, ultimately it 371 00:17:51,280 --> 00:17:53,639 Speaker 1: comes down to the intent to make money, that's really 372 00:17:54,240 --> 00:17:57,399 Speaker 1: and the demonstration of that. So if you're striving to 373 00:17:57,440 --> 00:17:59,600 Speaker 1: make money, if you're not making money for you know, 374 00:17:59,640 --> 00:18:02,680 Speaker 1: three or four years straight and you're just spending money 375 00:18:02,680 --> 00:18:04,720 Speaker 1: and spending money but you have no income, then that's 376 00:18:04,760 --> 00:18:07,920 Speaker 1: kind of a red flag. But overall, if you are 377 00:18:08,000 --> 00:18:10,680 Speaker 1: striving to make money, if you're bringing in some sort 378 00:18:10,680 --> 00:18:14,440 Speaker 1: of income over time, you can claim this as a business. 379 00:18:14,880 --> 00:18:17,040 Speaker 1: Until such time that the I R S really deems 380 00:18:17,040 --> 00:18:20,800 Speaker 1: it a hobby because your losses are so huge or 381 00:18:20,880 --> 00:18:23,520 Speaker 1: it's just going on going on for so long. So 382 00:18:23,720 --> 00:18:25,639 Speaker 1: the idea is that you want to find something that 383 00:18:25,680 --> 00:18:29,679 Speaker 1: will actually make you income, but that you can also 384 00:18:30,119 --> 00:18:36,200 Speaker 1: leverage a lot of your existing expenses into uh into deducting. Right, So, 385 00:18:36,440 --> 00:18:38,560 Speaker 1: I mean, I guess the way I'm thinking about it 386 00:18:38,640 --> 00:18:40,679 Speaker 1: is that perhaps I don't know. You can correct me 387 00:18:40,680 --> 00:18:42,639 Speaker 1: if I'm wrong. Obviously, like everybody knows that if you 388 00:18:42,680 --> 00:18:44,879 Speaker 1: make over six bucks like that, that is income you 389 00:18:44,920 --> 00:18:47,040 Speaker 1: have to report. And so is there some sort of 390 00:18:47,040 --> 00:18:51,160 Speaker 1: threshold that folks should be striving to hit in order 391 00:18:51,200 --> 00:18:53,560 Speaker 1: to start taking these different deductions and in order to 392 00:18:53,560 --> 00:18:56,440 Speaker 1: start making uh, you know, keeping up with these expenses. 393 00:18:56,640 --> 00:18:59,399 Speaker 1: Like when should folks consider kind of flipping that switch 394 00:18:59,480 --> 00:19:01,640 Speaker 1: from being a side hustle to an actual business where 395 00:19:01,680 --> 00:19:04,240 Speaker 1: they're filing a business return because that's something that also 396 00:19:04,280 --> 00:19:06,679 Speaker 1: costs money as well. So there's a couple of things 397 00:19:06,720 --> 00:19:08,439 Speaker 1: to unpack. Their Number One, there's no such thing as 398 00:19:08,800 --> 00:19:11,800 Speaker 1: six and or dollar threshold um that is just to 399 00:19:11,840 --> 00:19:14,280 Speaker 1: get a ten ninety nine to report. That's the reporting 400 00:19:14,280 --> 00:19:15,960 Speaker 1: the income to the I r s the person sending 401 00:19:15,960 --> 00:19:17,960 Speaker 1: you the money that actually has no impact that you 402 00:19:18,040 --> 00:19:20,160 Speaker 1: should You should be claiming all income that you earn 403 00:19:20,359 --> 00:19:23,120 Speaker 1: from your business. Period, Like you make a hunter box, 404 00:19:23,160 --> 00:19:27,639 Speaker 1: you're claiming it. But the the threshold to actually consider 405 00:19:27,680 --> 00:19:29,800 Speaker 1: it a business, I mean, there's no threshold. As soon 406 00:19:29,840 --> 00:19:31,480 Speaker 1: as you decide your own business. Like if one of 407 00:19:31,560 --> 00:19:33,639 Speaker 1: your daughters wants to go start a lemonade stand at 408 00:19:33,640 --> 00:19:35,440 Speaker 1: the end of the driveway. Guess what, that's a business, 409 00:19:36,000 --> 00:19:40,000 Speaker 1: right right, Like, there's no there's no threshold to start 410 00:19:40,000 --> 00:19:41,480 Speaker 1: a business. And also there are a lot of folks 411 00:19:41,520 --> 00:19:43,159 Speaker 1: who come to me and say, well I made a 412 00:19:43,160 --> 00:19:45,199 Speaker 1: little bit of money, but it's not like a legit business, Like, 413 00:19:45,240 --> 00:19:48,200 Speaker 1: well you made money, it's a legit business. As soon 414 00:19:48,240 --> 00:19:49,879 Speaker 1: as you decide you want to make money, or you 415 00:19:49,920 --> 00:19:53,439 Speaker 1: start making money and you can actually deduct expenses, you 416 00:19:53,440 --> 00:19:56,480 Speaker 1: can start you know, it's a very complicated process. I 417 00:19:56,480 --> 00:19:58,360 Speaker 1: won't get into here, but you can start claiming your 418 00:19:58,359 --> 00:20:00,800 Speaker 1: expenses before you actually make money. So if you decide 419 00:20:00,800 --> 00:20:03,840 Speaker 1: to start a business, then December, pay for the LLC, 420 00:20:04,119 --> 00:20:06,399 Speaker 1: pay for an accountant or a lawyer, and pay for 421 00:20:06,440 --> 00:20:09,240 Speaker 1: a few supplies. Like that doesn't work against you that 422 00:20:09,280 --> 00:20:11,760 Speaker 1: actually works in your favor because you can still claim 423 00:20:11,760 --> 00:20:16,280 Speaker 1: those expenses. So really there's nothing stopping you from uh 424 00:20:16,359 --> 00:20:20,359 Speaker 1: from starting your business, from just getting the ball rolling. Okay, 425 00:20:20,400 --> 00:20:22,879 Speaker 1: I want to ask quickly. You know, we talked about 426 00:20:22,880 --> 00:20:26,480 Speaker 1: how the I R S is understaffed, and I think 427 00:20:26,720 --> 00:20:29,720 Speaker 1: some people are concerned maybe that, hey, if I take 428 00:20:29,760 --> 00:20:32,040 Speaker 1: too many deductions, I'm gonna set myself up for some 429 00:20:32,080 --> 00:20:34,679 Speaker 1: sort of I R S audit And and maybe they're 430 00:20:34,720 --> 00:20:38,160 Speaker 1: too conservative when they should be. These are legitimate deductions 431 00:20:38,160 --> 00:20:39,920 Speaker 1: they should be taking that are going to help them 432 00:20:39,960 --> 00:20:43,199 Speaker 1: come tax time. How concerned should people be when it 433 00:20:43,240 --> 00:20:46,119 Speaker 1: comes to getting audited. Is this something that they should like, 434 00:20:46,320 --> 00:20:48,359 Speaker 1: live in fear of or not. So I'll put it 435 00:20:48,400 --> 00:20:49,840 Speaker 1: this way, Like you don't not go out in a 436 00:20:49,920 --> 00:20:53,680 Speaker 1: rainstorm because you might get struck by lightning, right, So 437 00:20:53,760 --> 00:20:56,320 Speaker 1: it's kind of the same thing. So if you're I mean, 438 00:20:56,320 --> 00:20:59,480 Speaker 1: the likelihood of getting audited is very very low, especially 439 00:20:59,560 --> 00:21:02,320 Speaker 1: if you have some type of business entity. Um, So 440 00:21:02,400 --> 00:21:06,200 Speaker 1: the likelihood of getting audited is it's insanely low. And 441 00:21:06,480 --> 00:21:09,359 Speaker 1: what happens is folks live in fear that they might 442 00:21:09,359 --> 00:21:12,280 Speaker 1: get audited, like that's the negative event. But here's the thing. 443 00:21:12,840 --> 00:21:15,160 Speaker 1: You should never fear an audit. If you're not doing 444 00:21:15,160 --> 00:21:17,400 Speaker 1: anything wrong, it just means that they're going to pull 445 00:21:17,440 --> 00:21:19,760 Speaker 1: you over. So like if what if the cops pulled 446 00:21:19,800 --> 00:21:25,480 Speaker 1: you over even if you weren't speeding, And that's and 447 00:21:25,520 --> 00:21:27,040 Speaker 1: we're like living in fear, Like what if a cop 448 00:21:27,080 --> 00:21:29,160 Speaker 1: pulls me over? It's like you're going thirty, You're fine. 449 00:21:31,400 --> 00:21:33,760 Speaker 1: I guess it's more of just the pain in the 450 00:21:33,800 --> 00:21:36,040 Speaker 1: butts of having to go through an audit, right, is 451 00:21:36,320 --> 00:21:39,840 Speaker 1: that the hang up? Yeah, it's just more of an inconvenience, 452 00:21:39,880 --> 00:21:41,560 Speaker 1: but that you have nothing to worry about by way 453 00:21:41,560 --> 00:21:43,240 Speaker 1: of like, oh my god, I'm going to jail. Like 454 00:21:43,280 --> 00:21:46,720 Speaker 1: people overreact all the time. All the time. I got 455 00:21:46,760 --> 00:21:48,639 Speaker 1: text messages from people saying I just don't want to 456 00:21:48,640 --> 00:21:50,000 Speaker 1: go to jail, and I'm like, why would you go 457 00:21:50,040 --> 00:21:54,159 Speaker 1: to jail? And I don't know, is there something that 458 00:21:54,280 --> 00:21:59,159 Speaker 1: you should be telling you as a professional, right, I 459 00:21:59,200 --> 00:22:00,560 Speaker 1: was just like, do you need to like put this 460 00:22:00,640 --> 00:22:03,000 Speaker 1: on a safe line, like get a burner phone? What 461 00:22:03,000 --> 00:22:07,360 Speaker 1: are we doing like actually breaking bad? Ask or what's 462 00:22:07,359 --> 00:22:10,440 Speaker 1: going on? Yeah? And I'm like secretly, I'm just I 463 00:22:10,520 --> 00:22:14,160 Speaker 1: was actually like hoping for what happened, and then they're 464 00:22:14,160 --> 00:22:17,080 Speaker 1: just worried about going to jail over, you know, forgetting 465 00:22:17,119 --> 00:22:19,320 Speaker 1: to report a ten ninety nine. I'm like, okay, you're 466 00:22:19,320 --> 00:22:21,400 Speaker 1: gonna get a fifty dollar fine. And if they even 467 00:22:21,400 --> 00:22:24,560 Speaker 1: catch it, and that's it, like it's a parking ticket. 468 00:22:24,600 --> 00:22:28,119 Speaker 1: People freak out and they really over dramatize the I 469 00:22:28,240 --> 00:22:29,760 Speaker 1: R S a lot, and I think we just need 470 00:22:29,760 --> 00:22:32,520 Speaker 1: to demystify that into well, they're just here to enforce 471 00:22:32,560 --> 00:22:35,200 Speaker 1: the tax law Congress sets up, and they're just giving 472 00:22:35,240 --> 00:22:37,360 Speaker 1: their handbook to go out and do their audits or 473 00:22:37,640 --> 00:22:39,800 Speaker 1: do the reviews. And again, if you have a pro 474 00:22:39,880 --> 00:22:41,800 Speaker 1: on your side who can negotiate with them or to 475 00:22:41,840 --> 00:22:44,960 Speaker 1: talk to them, it's even better because the I R S. 476 00:22:45,000 --> 00:22:48,320 Speaker 1: Here's the thing, it's a massive incommunicity at audited. I'm 477 00:22:48,320 --> 00:22:51,679 Speaker 1: not gonna lie, but the fastest they can get out 478 00:22:51,720 --> 00:22:54,320 Speaker 1: of there, the happier they are. So the better you 479 00:22:54,359 --> 00:22:56,760 Speaker 1: can make the documentation, the better that you can have 480 00:22:56,800 --> 00:23:00,040 Speaker 1: everything set up for them, they will reward you, I 481 00:23:00,080 --> 00:23:02,399 Speaker 1: mean literally and figuratively. They'll get out of your hair fast, 482 00:23:02,560 --> 00:23:04,640 Speaker 1: and they'll they'll trust you, so they're approbably be more 483 00:23:04,640 --> 00:23:07,680 Speaker 1: inclined to listen to you when you make those explanations, 484 00:23:07,680 --> 00:23:11,840 Speaker 1: so everybody wins when the taxpayer is prepared. Makes sense. 485 00:23:11,920 --> 00:23:13,600 Speaker 1: That's a I like that you said that because I 486 00:23:13,600 --> 00:23:17,080 Speaker 1: feel like that just puts getting audited in a healthier perspective. 487 00:23:17,080 --> 00:23:19,560 Speaker 1: And honestly, deductions as well, and kind of while we're 488 00:23:19,560 --> 00:23:22,400 Speaker 1: talking about this there, there's a wide range of deductions 489 00:23:22,400 --> 00:23:24,280 Speaker 1: that you can take, you know, as a small business. 490 00:23:24,480 --> 00:23:26,560 Speaker 1: You mentioned a couple of them there, Shannon, But like, 491 00:23:26,560 --> 00:23:28,879 Speaker 1: what are some that you know that might even seem illegal, 492 00:23:28,920 --> 00:23:31,800 Speaker 1: like you're kind of pushing the envelope, but our deductions 493 00:23:31,840 --> 00:23:34,920 Speaker 1: that are totally totally legit that are actually allowed. Oh yeah, 494 00:23:34,960 --> 00:23:36,879 Speaker 1: I get this all the time where people ask can 495 00:23:36,880 --> 00:23:40,560 Speaker 1: I really hire my kids? Right? And yeah, and the 496 00:23:40,600 --> 00:23:43,480 Speaker 1: answer is yes you can. So you can absolutely hire 497 00:23:43,520 --> 00:23:47,240 Speaker 1: your kids and as long as the work is legit 498 00:23:47,320 --> 00:23:49,920 Speaker 1: and its age appropriate, Like you cannot hire your two 499 00:23:49,960 --> 00:23:52,160 Speaker 1: year old to do your social media and you can't 500 00:23:52,280 --> 00:23:55,639 Speaker 1: hire your you know, you're your five year old to 501 00:23:55,720 --> 00:23:59,760 Speaker 1: drive the car. You know, just don't don't do anything 502 00:23:59,800 --> 00:24:02,200 Speaker 1: like that. But if you want to hire your teenager 503 00:24:02,280 --> 00:24:04,840 Speaker 1: to update your Instagram, cool, If you want to hire 504 00:24:04,880 --> 00:24:06,920 Speaker 1: your seventeen year old to drive. You want to hire 505 00:24:06,920 --> 00:24:10,119 Speaker 1: your kids to carry equipment for you, you absolutely can 506 00:24:10,160 --> 00:24:12,160 Speaker 1: do that. Just pay attention to state labor laws. That's 507 00:24:12,200 --> 00:24:14,680 Speaker 1: the big variable. But the I R S A D 508 00:24:14,680 --> 00:24:18,479 Speaker 1: percent lets you hire your kids and pay them. And 509 00:24:18,560 --> 00:24:22,760 Speaker 1: because the kids get the standard deduction of what's in 510 00:24:22,800 --> 00:24:27,280 Speaker 1: seeing we're in two, which is I believe was twelve thousand, 511 00:24:27,680 --> 00:24:30,439 Speaker 1: five fifty, it keeps going up year every year. Right, 512 00:24:30,440 --> 00:24:32,400 Speaker 1: so it's about twelve thousand dollars, which is why you'll 513 00:24:32,400 --> 00:24:35,040 Speaker 1: see that number pop up if you google this, about 514 00:24:35,080 --> 00:24:37,400 Speaker 1: twelve thousand dollars. The first twelve thousand dollars that kid 515 00:24:37,400 --> 00:24:41,040 Speaker 1: owns that earns excuse me, first twelve thousand dollars the 516 00:24:41,080 --> 00:24:44,280 Speaker 1: kid earns is tax free because that's under the standard 517 00:24:44,280 --> 00:24:46,360 Speaker 1: deduction that we all get a twelve thousand dollar heads 518 00:24:46,359 --> 00:24:48,359 Speaker 1: start when we file our taxes. A. Right, can you 519 00:24:48,359 --> 00:24:50,320 Speaker 1: get a slap on the hand for overpaying your kid, 520 00:24:50,400 --> 00:24:52,280 Speaker 1: for paying them, let's say two an hour when their 521 00:24:52,320 --> 00:24:54,800 Speaker 1: labor labor isn't necessarily worth that? Yeah? Yeah, what's what's 522 00:24:54,800 --> 00:24:58,399 Speaker 1: the reasonable reasonable compensation for what they're doing? So like 523 00:24:58,440 --> 00:25:00,320 Speaker 1: if they work an hour a month, you don't get 524 00:25:00,359 --> 00:25:04,720 Speaker 1: to pay them like you don't want to do that anyway. 525 00:25:04,720 --> 00:25:09,960 Speaker 1: You keep it under under twelve thousand for for one 526 00:25:10,040 --> 00:25:13,080 Speaker 1: hour a month. Is that frowned up on? Yeah, you 527 00:25:13,119 --> 00:25:15,600 Speaker 1: want to actually have legit work that's worth like a 528 00:25:15,600 --> 00:25:18,640 Speaker 1: thousand bucks a month or or whatever it may be. Yeah, 529 00:25:18,920 --> 00:25:21,639 Speaker 1: it's commensurate with their skill set, their age, you know, 530 00:25:21,640 --> 00:25:23,760 Speaker 1: the amount of time that they're working. But a lot 531 00:25:23,800 --> 00:25:27,119 Speaker 1: of folks find a way to really uh paint a 532 00:25:27,119 --> 00:25:29,720 Speaker 1: really solid picture for this. And you have to get 533 00:25:29,760 --> 00:25:32,199 Speaker 1: real creative too when you find different ways for them 534 00:25:32,240 --> 00:25:34,280 Speaker 1: to help around and you you would be surprised how 535 00:25:34,280 --> 00:25:37,600 Speaker 1: many ways your kid can help with your business. Well, 536 00:25:37,640 --> 00:25:40,360 Speaker 1: and one of the coolest things about paying your kid 537 00:25:40,760 --> 00:25:44,280 Speaker 1: to do work for your business is that if you're 538 00:25:44,320 --> 00:25:47,640 Speaker 1: paying them every dollar they make counsels earned income, which 539 00:25:47,640 --> 00:25:51,199 Speaker 1: means they can, let's say they're eleven years old, they 540 00:25:51,200 --> 00:25:53,639 Speaker 1: can open up a roth ira a and start investing 541 00:25:53,680 --> 00:25:55,720 Speaker 1: for their future early. So that to me is like 542 00:25:55,920 --> 00:25:57,480 Speaker 1: it's not just that you can give them some sort 543 00:25:57,520 --> 00:25:59,480 Speaker 1: of work that that provides them some sort of a 544 00:25:59,520 --> 00:26:04,359 Speaker 1: modest come, but that you can drastically, dramatically accelerate their 545 00:26:04,400 --> 00:26:07,840 Speaker 1: ability to invest for their futures. Because that's the only 546 00:26:07,840 --> 00:26:10,879 Speaker 1: way you unlock an IR right early on for them exactly. 547 00:26:10,960 --> 00:26:13,520 Speaker 1: And not to mention the college savings plan right, like, 548 00:26:14,680 --> 00:26:17,280 Speaker 1: so you can do college savings through that. So basically 549 00:26:17,280 --> 00:26:21,320 Speaker 1: your business is funding your kids college education. And not 550 00:26:21,359 --> 00:26:24,399 Speaker 1: to mention too, this is great to teach your kids 551 00:26:24,440 --> 00:26:26,520 Speaker 1: work ethic and the value of a dollar. Have them 552 00:26:26,520 --> 00:26:29,360 Speaker 1: work for money, have them have their own checking account 553 00:26:29,760 --> 00:26:32,439 Speaker 1: and be able to see, you know that their balance 554 00:26:32,480 --> 00:26:34,280 Speaker 1: is going up or that they have to pay taxes. 555 00:26:34,400 --> 00:26:36,520 Speaker 1: You know, and depending on the age and whether they 556 00:26:36,560 --> 00:26:39,119 Speaker 1: comprehend this right, but you know, and there are like 557 00:26:39,200 --> 00:26:42,480 Speaker 1: early teen years, this is huge if you can actually 558 00:26:42,560 --> 00:26:45,080 Speaker 1: hire them before there maybe of working age because I 559 00:26:45,160 --> 00:26:47,760 Speaker 1: started working at like fourteen and sixteen years old. But 560 00:26:47,880 --> 00:26:49,800 Speaker 1: if you're hiring a ten, eleven, twelve year old and 561 00:26:49,840 --> 00:26:52,480 Speaker 1: you're teach them about this, what a gift that could be, 562 00:26:52,720 --> 00:26:54,280 Speaker 1: you know, as a side effect to this whole thing. 563 00:26:54,760 --> 00:26:56,840 Speaker 1: And not only does it teach them about personal finances, 564 00:26:56,880 --> 00:27:00,920 Speaker 1: it might even lead them to becoming accountants, right right, 565 00:27:00,960 --> 00:27:03,840 Speaker 1: if that's what you want, like it did in your case. Um, Okay, 566 00:27:03,880 --> 00:27:05,879 Speaker 1: so I feel like we're getting really nitty gritty here, 567 00:27:05,920 --> 00:27:08,080 Speaker 1: but like so if you are looking to high So 568 00:27:08,280 --> 00:27:10,199 Speaker 1: you know, Joe and I we are oldest. We have 569 00:27:10,280 --> 00:27:12,119 Speaker 1: eight year olds, and I feel like, you know, an 570 00:27:12,119 --> 00:27:13,920 Speaker 1: eight year old can start to actually do some things 571 00:27:13,960 --> 00:27:16,679 Speaker 1: around in an office. Would you would you bring them 572 00:27:16,720 --> 00:27:18,439 Speaker 1: on as like contract labor or do they have to 573 00:27:18,440 --> 00:27:19,840 Speaker 1: be waged? Do you know, do they need to get 574 00:27:19,840 --> 00:27:21,800 Speaker 1: a W two in order to be they have to 575 00:27:21,800 --> 00:27:24,280 Speaker 1: get a W two. So there's a very specific way 576 00:27:24,320 --> 00:27:27,399 Speaker 1: to navigate this correctly. If you tenney nine them, then 577 00:27:27,440 --> 00:27:29,679 Speaker 1: they have to pay self employment taxes and that's no bueno. 578 00:27:30,119 --> 00:27:32,879 Speaker 1: So you want to make sure that that you're giving 579 00:27:32,920 --> 00:27:34,680 Speaker 1: them that you're doing it the optimal way of the 580 00:27:34,720 --> 00:27:38,439 Speaker 1: cleanest way. So if you're hiring and and for example, right, 581 00:27:38,480 --> 00:27:39,920 Speaker 1: I actually think I did this when I was a kid. 582 00:27:39,920 --> 00:27:41,760 Speaker 1: My dad probably did this without me knowing, but I 583 00:27:41,800 --> 00:27:44,320 Speaker 1: was showing up at like eight ten years old, filing 584 00:27:44,760 --> 00:27:47,320 Speaker 1: right alphabetically. You know, I would take all these papers 585 00:27:47,320 --> 00:27:48,919 Speaker 1: and put them in the file folders based on what 586 00:27:49,000 --> 00:27:52,040 Speaker 1: letter they started with. Like that's a great thing for 587 00:27:52,040 --> 00:27:55,119 Speaker 1: for a kid to do. So uh so, yeah, you 588 00:27:55,119 --> 00:27:58,600 Speaker 1: would basically pay the kid on payroll for sure, with 589 00:27:58,720 --> 00:28:01,760 Speaker 1: a W two. If you are a sole proprietor or 590 00:28:01,760 --> 00:28:05,480 Speaker 1: single member LLC and the only owners are the parent 591 00:28:05,640 --> 00:28:09,560 Speaker 1: or parents of the kid. If you have an S corporation, 592 00:28:09,680 --> 00:28:11,639 Speaker 1: it's a little more complicated, but you still get to 593 00:28:11,640 --> 00:28:13,880 Speaker 1: the same destination. It's just a detour. If you're an 594 00:28:13,960 --> 00:28:18,200 Speaker 1: S corporation or C corporation, what you do is you 595 00:28:18,280 --> 00:28:21,399 Speaker 1: have a family office that is a sole proprietorship or 596 00:28:21,400 --> 00:28:24,119 Speaker 1: single member LLC that that hires the kid. So you 597 00:28:24,160 --> 00:28:27,320 Speaker 1: start another business that hires the kid, but then the 598 00:28:27,480 --> 00:28:32,280 Speaker 1: S corporate C corp pays that organization for the service. 599 00:28:33,040 --> 00:28:35,920 Speaker 1: That actually makes me think we've got some questions about, 600 00:28:36,400 --> 00:28:40,080 Speaker 1: you know, how your personal visions should be incorporated and 601 00:28:40,120 --> 00:28:43,040 Speaker 1: how to you know, how that affects your tax structure, 602 00:28:43,280 --> 00:28:45,080 Speaker 1: and we'll get to a couple of questions on that 603 00:28:45,160 --> 00:28:56,520 Speaker 1: with you, Shannon, or right after this break. All right, 604 00:28:56,520 --> 00:28:58,640 Speaker 1: we're back from the break and we're talking with Shannon 605 00:28:58,760 --> 00:29:02,120 Speaker 1: Weinstein about taxes, and specifically right now we're talking about 606 00:29:02,200 --> 00:29:05,400 Speaker 1: small business taxes. Shannon. You you're talking about some of 607 00:29:05,440 --> 00:29:08,640 Speaker 1: the different ways that businesses can compare their kids and 608 00:29:08,680 --> 00:29:12,560 Speaker 1: how that can be a completely legitimate expense, uh and 609 00:29:12,640 --> 00:29:14,440 Speaker 1: a way for you to start building some wealth for 610 00:29:14,560 --> 00:29:17,440 Speaker 1: your kid. But let's let's talk about the exciting realm 611 00:29:17,760 --> 00:29:22,320 Speaker 1: of designations. Because you can choose between like a sole proprietorship, 612 00:29:22,360 --> 00:29:25,840 Speaker 1: you can choose an LLC, partnerships as corporations. Like, how 613 00:29:25,960 --> 00:29:28,720 Speaker 1: should folks think about that choice? When you've got so 614 00:29:28,760 --> 00:29:31,720 Speaker 1: many at your disposal? So there's a couple of things 615 00:29:31,720 --> 00:29:33,240 Speaker 1: that you have choices over and then a couple of 616 00:29:33,240 --> 00:29:36,160 Speaker 1: things that are circumstantial. Right, So when you're starting a business, 617 00:29:36,200 --> 00:29:39,160 Speaker 1: if you have multiple owners, you're looking at a multi 618 00:29:39,200 --> 00:29:41,880 Speaker 1: member LLC or a partnership. Right, that's pretty obvious. If 619 00:29:41,880 --> 00:29:43,760 Speaker 1: there's multiple people, then you have to form it as 620 00:29:43,800 --> 00:29:46,520 Speaker 1: a partnership and file as a partnership. UM. If you're 621 00:29:46,520 --> 00:29:49,200 Speaker 1: a sole owner, you're typically This is what most people 622 00:29:49,440 --> 00:29:52,800 Speaker 1: UM don't understand is that when you're a sole owner 623 00:29:53,280 --> 00:29:56,240 Speaker 1: operating a business but you haven't actually filed the legal entity, 624 00:29:56,400 --> 00:29:59,160 Speaker 1: you are a sole proprietor. So but that is the 625 00:29:59,160 --> 00:30:01,800 Speaker 1: default position if you've done nothing. What you can then 626 00:30:01,880 --> 00:30:04,600 Speaker 1: do is get an LLC if you're the single owner, 627 00:30:04,640 --> 00:30:09,200 Speaker 1: single member LLC, which just provides legal liability protection from 628 00:30:09,240 --> 00:30:12,280 Speaker 1: my lens. As a tax professional, I see no difference 629 00:30:12,280 --> 00:30:15,160 Speaker 1: between a sole proprietor and a single member LLC, so 630 00:30:15,360 --> 00:30:18,520 Speaker 1: you have legal liability protection. But from a tax standpoint, 631 00:30:18,560 --> 00:30:20,520 Speaker 1: you guys are treated exactly the same in my eyes. 632 00:30:20,920 --> 00:30:24,080 Speaker 1: So if you want to look into LLC's, talk to 633 00:30:24,120 --> 00:30:26,680 Speaker 1: a lawyer because they're the ones who see these two 634 00:30:26,960 --> 00:30:30,440 Speaker 1: different things differently. Um. But if you have an LLC, 635 00:30:30,680 --> 00:30:33,680 Speaker 1: which I generally recommend to most business owners starting out 636 00:30:33,840 --> 00:30:37,320 Speaker 1: some simplest way to form, uh, if you have a 637 00:30:37,360 --> 00:30:40,040 Speaker 1: single member LLC, you can then and this is where 638 00:30:40,040 --> 00:30:43,239 Speaker 1: it gets complicated. You can elect to stay taxed as 639 00:30:43,240 --> 00:30:46,680 Speaker 1: a sole proprietor or you can what I say, throw 640 00:30:46,720 --> 00:30:49,840 Speaker 1: a couple of different outfits on this business and you 641 00:30:49,880 --> 00:30:52,160 Speaker 1: can be taxed as an S corporation or tax as 642 00:30:52,160 --> 00:30:55,040 Speaker 1: a C corporation. So you get to kind of play 643 00:30:55,120 --> 00:30:59,160 Speaker 1: disguise and put on a cloak of whatever. Right, it's 644 00:30:59,160 --> 00:31:00,720 Speaker 1: I look at like a super hero like you get 645 00:31:00,720 --> 00:31:03,560 Speaker 1: to put on these different you know, capes. It's like 646 00:31:03,640 --> 00:31:08,760 Speaker 1: cosplay exactly right. Sounds more like an invisibility to say 647 00:31:08,760 --> 00:31:11,920 Speaker 1: about it, Harry Potter style, Yes, invisibility cloak from self 648 00:31:11,920 --> 00:31:15,320 Speaker 1: employment tax. So so what you do is you can 649 00:31:15,360 --> 00:31:17,320 Speaker 1: elect me taxes and S corp or C corp. And 650 00:31:17,320 --> 00:31:19,520 Speaker 1: I'll explain when you may want to do that. But 651 00:31:20,000 --> 00:31:22,040 Speaker 1: then there's also the option of forming straight up as 652 00:31:22,080 --> 00:31:25,120 Speaker 1: a corporation in your state. And it really will depend 653 00:31:25,160 --> 00:31:26,960 Speaker 1: on what your goals for the business are and where 654 00:31:26,960 --> 00:31:29,400 Speaker 1: you're at. So I would definitely talk to a professional 655 00:31:29,440 --> 00:31:32,200 Speaker 1: to nail down what you want to do. Uh, the 656 00:31:32,240 --> 00:31:35,000 Speaker 1: most common enity structure that I see in my work 657 00:31:35,120 --> 00:31:39,840 Speaker 1: is LLC is taxed as S corporations. Okay, And so yeah, 658 00:31:39,920 --> 00:31:42,120 Speaker 1: is there an easy filter that someone is saying, Like, 659 00:31:42,200 --> 00:31:45,720 Speaker 1: let's say I'm just beginning. I made in my business 660 00:31:46,160 --> 00:31:48,760 Speaker 1: last year. I think I'm gonna make twelve dollars this 661 00:31:48,800 --> 00:31:51,680 Speaker 1: year because I'm I'm growing at a rapid pace, but 662 00:31:51,920 --> 00:31:54,040 Speaker 1: I'm not quite at the level where it's self sustaining 663 00:31:54,120 --> 00:31:56,440 Speaker 1: or where this is my main gig. Like what kind 664 00:31:56,440 --> 00:31:59,400 Speaker 1: of filters do people need to run things through to determine, 665 00:31:59,560 --> 00:32:03,680 Speaker 1: you know, which which designation makes the most sense for them. So, 666 00:32:03,800 --> 00:32:06,920 Speaker 1: first off, you want to have some type of LLC 667 00:32:07,120 --> 00:32:09,880 Speaker 1: or protection if the assets of the business, meaning the 668 00:32:09,920 --> 00:32:12,400 Speaker 1: cash in the bank account, is enough that if you 669 00:32:12,520 --> 00:32:15,160 Speaker 1: got personally sued, you know that you want to protect it. 670 00:32:15,480 --> 00:32:18,720 Speaker 1: And it's really an individual judgment call on whether or 671 00:32:18,720 --> 00:32:20,840 Speaker 1: not you want to put all of that money into 672 00:32:20,920 --> 00:32:22,760 Speaker 1: one locker in the gym, or you want to put 673 00:32:22,800 --> 00:32:25,160 Speaker 1: it into two different lockers with different lock codes, right, 674 00:32:25,280 --> 00:32:27,479 Speaker 1: because then if one gets broken into, do you want 675 00:32:27,480 --> 00:32:29,000 Speaker 1: to have one in a different lock or just to 676 00:32:29,280 --> 00:32:32,440 Speaker 1: you know, minimize the risk. That's just the question that 677 00:32:32,480 --> 00:32:35,120 Speaker 1: I have to ask each individual client. I don't know, 678 00:32:35,280 --> 00:32:37,240 Speaker 1: there's really no kind of rule of thumb on that, 679 00:32:37,920 --> 00:32:40,040 Speaker 1: because everyone treats money a little bit differently with what's 680 00:32:40,080 --> 00:32:43,800 Speaker 1: significant or not. But I would say generally it's it's 681 00:32:43,920 --> 00:32:46,960 Speaker 1: good practice to have something in place because then you 682 00:32:47,000 --> 00:32:49,360 Speaker 1: can take advantage of things like the S corporation election, 683 00:32:49,440 --> 00:32:53,960 Speaker 1: which I normally recommend. If you have consistently shown that 684 00:32:54,000 --> 00:32:57,360 Speaker 1: you can sustain a profit off or more in a year, 685 00:32:58,360 --> 00:33:01,000 Speaker 1: and and so what's the benefit behind that, Like when 686 00:33:01,080 --> 00:33:03,520 Speaker 1: when you get to that level? So why would you 687 00:33:03,560 --> 00:33:05,920 Speaker 1: even want to do an S corporation? The answer would 688 00:33:05,920 --> 00:33:09,479 Speaker 1: be that you save a ton of self employment taxes. 689 00:33:09,560 --> 00:33:12,120 Speaker 1: So when you make your profit as a business owner, 690 00:33:12,440 --> 00:33:14,200 Speaker 1: Let's say you make a hundred thousand dollars in profit 691 00:33:14,240 --> 00:33:18,840 Speaker 1: for easy numbers, right, hundred thousand dollars in profit, Then Uh, 692 00:33:18,960 --> 00:33:21,040 Speaker 1: you get tax and most business owners don't know this. 693 00:33:21,160 --> 00:33:24,600 Speaker 1: You get tax fifteen point three percent and self employment taxes. 694 00:33:25,440 --> 00:33:28,080 Speaker 1: And I dare anybody listening go look at your tax 695 00:33:28,120 --> 00:33:29,840 Speaker 1: return that you filed last year or this year if 696 00:33:29,840 --> 00:33:32,840 Speaker 1: you've already done it, and go check how much you 697 00:33:32,880 --> 00:33:35,000 Speaker 1: paid in self employment tax. I bet if you owed, 698 00:33:35,640 --> 00:33:38,840 Speaker 1: you owed whatever that was, because people do not account 699 00:33:38,840 --> 00:33:41,800 Speaker 1: for that. And you pay fifteen point three percent in 700 00:33:41,840 --> 00:33:44,840 Speaker 1: self employment tax. And what happens is with an S 701 00:33:44,880 --> 00:33:48,600 Speaker 1: corporation is they allow you to pay yourself as an 702 00:33:48,640 --> 00:33:52,120 Speaker 1: owner employee with a W two a certain portion of 703 00:33:52,160 --> 00:33:54,520 Speaker 1: your profits or a reasonable salary. You know, we figure 704 00:33:54,520 --> 00:33:58,080 Speaker 1: out reasonable salary, which is very subjective, but a portion, 705 00:33:58,720 --> 00:34:01,120 Speaker 1: and then the rest of it is immune from self 706 00:34:01,120 --> 00:34:02,719 Speaker 1: employment tax. Which is why I say you have an 707 00:34:02,720 --> 00:34:06,040 Speaker 1: invisibility cloak. So a good chunk of your profit does 708 00:34:06,120 --> 00:34:08,400 Speaker 1: not have that fifteen point three percent tax on it 709 00:34:08,440 --> 00:34:11,040 Speaker 1: when you're an escorp, which means that you can experience 710 00:34:11,160 --> 00:34:15,560 Speaker 1: ridiculously high tax savings as you grow. And uh, just 711 00:34:15,600 --> 00:34:18,879 Speaker 1: by filing a couple of pieces of paper, it's really awesome. Well, 712 00:34:18,920 --> 00:34:22,319 Speaker 1: so as long as you're seeing reasonable compensation, you are 713 00:34:22,360 --> 00:34:26,560 Speaker 1: allowed to have owner distributions. Basically that that our tax 714 00:34:26,600 --> 00:34:29,319 Speaker 1: free from at least from self employment tax. Exactly, you 715 00:34:29,320 --> 00:34:32,279 Speaker 1: still pay income tax on everything, but the differences. The 716 00:34:32,280 --> 00:34:35,279 Speaker 1: self employment tax does not apply to your distributions, which 717 00:34:35,320 --> 00:34:39,560 Speaker 1: is fantastic for most scorp owners because generally your payroll 718 00:34:39,640 --> 00:34:42,480 Speaker 1: is not the majority of your profit, so you can 719 00:34:42,520 --> 00:34:44,680 Speaker 1: take a lot of distributions out of your business without 720 00:34:44,680 --> 00:34:48,680 Speaker 1: worrying about that fifteen point three and the fifty dollar 721 00:34:48,719 --> 00:34:51,000 Speaker 1: threshold is really after you start breaking even on the 722 00:34:51,040 --> 00:34:54,200 Speaker 1: cost of an scorp, like running the payroll service, hiring 723 00:34:54,200 --> 00:34:55,960 Speaker 1: an accountant to do with the new tax return, you 724 00:34:56,000 --> 00:34:59,960 Speaker 1: have to do maybe bookkeeping and maybe some additional register 725 00:35:00,000 --> 00:35:02,279 Speaker 1: ation or tax costs. So you want to make sure 726 00:35:02,320 --> 00:35:05,120 Speaker 1: that you're really healthy and a profitable business so that 727 00:35:05,160 --> 00:35:07,160 Speaker 1: you're not spending more for the s corp. Then you're 728 00:35:07,160 --> 00:35:12,359 Speaker 1: actually saving someone who is employed traditionally and gets paid 729 00:35:12,360 --> 00:35:15,719 Speaker 1: through W two through their employer. They you know, they 730 00:35:15,800 --> 00:35:17,840 Speaker 1: might say, I don't think it's a good idea for 731 00:35:17,840 --> 00:35:20,000 Speaker 1: me to strike out on my own, and one of 732 00:35:20,040 --> 00:35:24,320 Speaker 1: their reasons might be that their employer pays half of 733 00:35:24,360 --> 00:35:27,560 Speaker 1: that FIKE attacks, right, so they don't They don't personally 734 00:35:27,560 --> 00:35:30,759 Speaker 1: pay the full fifteen plus percent um. What would you 735 00:35:30,800 --> 00:35:32,640 Speaker 1: say to that person who's who's saying I don't I 736 00:35:32,640 --> 00:35:34,040 Speaker 1: don't know if I'm ready to go start my own 737 00:35:34,080 --> 00:35:37,400 Speaker 1: business in part because they think they're going to be 738 00:35:37,440 --> 00:35:41,200 Speaker 1: paying more in tax if they make that leap through 739 00:35:41,239 --> 00:35:44,600 Speaker 1: that one, Lens, I understand the math there, But if 740 00:35:44,640 --> 00:35:47,200 Speaker 1: you go off on your own, now we're talking about 741 00:35:47,280 --> 00:35:50,520 Speaker 1: unlocking all of those tax deductions and tax savings, right, 742 00:35:50,560 --> 00:35:53,200 Speaker 1: So your profit is actually different than your income as 743 00:35:53,200 --> 00:35:56,920 Speaker 1: an employee. So if you make a hundred thousand dollar salary, 744 00:35:56,960 --> 00:35:59,280 Speaker 1: that's that's an ink that's locked in. Like, you can't 745 00:35:59,320 --> 00:36:03,160 Speaker 1: bring that number or down. You can't reduce that salary 746 00:36:03,200 --> 00:36:05,960 Speaker 1: down and say well I actually made like thirt k. No, 747 00:36:06,239 --> 00:36:08,400 Speaker 1: you can't really do that. But as a business owner 748 00:36:08,640 --> 00:36:13,080 Speaker 1: you can. And that's why it's far more advantageous to 749 00:36:13,320 --> 00:36:17,240 Speaker 1: lower your taxable income by having some type of business 750 00:36:17,239 --> 00:36:20,680 Speaker 1: on the side or some type of business income, because 751 00:36:20,719 --> 00:36:23,719 Speaker 1: then you can offset that with expenses and it just 752 00:36:23,840 --> 00:36:26,399 Speaker 1: it opens up so much potential. Yeah, it's not, it's 753 00:36:26,400 --> 00:36:28,080 Speaker 1: not a simple math problem. There's just a lot more, 754 00:36:28,120 --> 00:36:29,640 Speaker 1: Like you said, there's a lot more flexibility when it 755 00:36:29,680 --> 00:36:33,160 Speaker 1: comes to owning your own business and should you know, 756 00:36:33,200 --> 00:36:34,880 Speaker 1: you keep talking about sort of like some of the 757 00:36:35,040 --> 00:36:41,240 Speaker 1: legal liability that you're able to waive essentially or or 758 00:36:41,280 --> 00:36:43,239 Speaker 1: you know, some of that protection you're able to gain 759 00:36:43,280 --> 00:36:45,920 Speaker 1: by incorporating. But you also say that it is not 760 00:36:46,120 --> 00:36:49,200 Speaker 1: enough to to actually, you know, fully protect your business, 761 00:36:49,200 --> 00:36:51,880 Speaker 1: Like why is that? And what else should folks do 762 00:36:51,920 --> 00:36:53,920 Speaker 1: as they're looking to start their own small businesses from 763 00:36:53,960 --> 00:36:57,520 Speaker 1: a from a legal standpoint, right? So, I mean an LLC, 764 00:36:57,640 --> 00:37:00,560 Speaker 1: for example, is like an umbrella. It's a don't prevent 765 00:37:00,640 --> 00:37:05,600 Speaker 1: the rain. It is still happening, but you have a 766 00:37:05,600 --> 00:37:07,920 Speaker 1: little bit of yeah, okay, it just protects you in 767 00:37:07,920 --> 00:37:11,080 Speaker 1: case it rains. So you know, it's not enough to 768 00:37:11,080 --> 00:37:13,160 Speaker 1: protect your business. You want to have you know, you 769 00:37:13,160 --> 00:37:14,880 Speaker 1: want to have some type and this gets into by 770 00:37:14,920 --> 00:37:17,240 Speaker 1: the way, this gets into legal I'm not a lawyer. 771 00:37:17,320 --> 00:37:20,480 Speaker 1: This is not legal advice, you know insert disclaimer here, right, 772 00:37:20,640 --> 00:37:24,800 Speaker 1: but uh, really, when it comes to protecting your business, 773 00:37:24,840 --> 00:37:26,880 Speaker 1: you need to have the right levels of insurance. You 774 00:37:26,920 --> 00:37:29,759 Speaker 1: need to have you know, the right financial management, and 775 00:37:29,760 --> 00:37:32,360 Speaker 1: you need to have the right type of business entity 776 00:37:32,400 --> 00:37:34,160 Speaker 1: because you want to make sure that your assets are 777 00:37:34,160 --> 00:37:36,440 Speaker 1: protected in the event that you know, you get sued 778 00:37:36,880 --> 00:37:41,120 Speaker 1: because you can't even get sued personally. I think people think, oh, 779 00:37:41,160 --> 00:37:43,200 Speaker 1: my business is pretty low risk, and like I don't 780 00:37:43,200 --> 00:37:45,920 Speaker 1: work with a lot of people where I have to 781 00:37:45,960 --> 00:37:50,080 Speaker 1: worry about, you know, personal injuries or anything like that. Yeah, 782 00:37:50,120 --> 00:37:52,400 Speaker 1: but you know, look at my business. I have cybersecurity 783 00:37:52,400 --> 00:37:54,680 Speaker 1: insurance in case I get hacked, right or in case 784 00:37:54,719 --> 00:37:57,000 Speaker 1: any of my software providers get hacked and there and 785 00:37:57,000 --> 00:38:01,000 Speaker 1: people's personal information is taken. I have no business insurance 786 00:38:01,040 --> 00:38:03,840 Speaker 1: Arizon omissions in case I goof up and write uh 787 00:38:04,280 --> 00:38:08,200 Speaker 1: nine instead of a six. Like you know, there there 788 00:38:08,239 --> 00:38:11,000 Speaker 1: are tons of different ways that you can protect yourself 789 00:38:11,000 --> 00:38:13,920 Speaker 1: as a business owner based on your industry, and I 790 00:38:14,000 --> 00:38:16,719 Speaker 1: just recommend exploring all of those different options and not 791 00:38:16,800 --> 00:38:19,920 Speaker 1: just relying on well, I have an LLC so I'm 792 00:38:19,960 --> 00:38:22,680 Speaker 1: never gonna get sued like you can get sued. It 793 00:38:22,760 --> 00:38:25,839 Speaker 1: just protects your business assets from being touched if you're 794 00:38:25,840 --> 00:38:28,520 Speaker 1: sued personally, and vice versa. And it's not even a 795 00:38:28,920 --> 00:38:33,000 Speaker 1: percent protected. Because here's the thing. If you're commingling your 796 00:38:33,160 --> 00:38:35,520 Speaker 1: business and personal funds, like your bank account is a 797 00:38:35,520 --> 00:38:38,640 Speaker 1: whole mix of you know, everything, if it's just like 798 00:38:38,680 --> 00:38:43,160 Speaker 1: a giant gumbo of transactions and you're like, okay, what 799 00:38:43,160 --> 00:38:45,640 Speaker 1: what was this charge from Venmo? What was this Amazon? 800 00:38:45,760 --> 00:38:48,160 Speaker 1: What was you know, this PayPal? If all of it 801 00:38:48,200 --> 00:38:52,320 Speaker 1: is commingled and jumbled in there, then what will happen 802 00:38:52,440 --> 00:38:56,279 Speaker 1: is if you get sued, right, and the judge could say, 803 00:38:56,320 --> 00:38:59,680 Speaker 1: I'm just painting a hypothetical that the judge could say, well, 804 00:39:00,360 --> 00:39:03,759 Speaker 1: show me like your business versus your personal assets, right, 805 00:39:04,360 --> 00:39:07,280 Speaker 1: and if you can't tell the difference, then why should 806 00:39:08,000 --> 00:39:12,080 Speaker 1: they respect that those boundaries? If you're not so that's 807 00:39:12,239 --> 00:39:15,200 Speaker 1: that's a really good call to anybody who has a 808 00:39:15,239 --> 00:39:18,720 Speaker 1: small business to make a distinction between their personal account 809 00:39:18,719 --> 00:39:20,759 Speaker 1: of their business. Put up that free online business checking 810 00:39:20,760 --> 00:39:23,240 Speaker 1: a yes, right now, exactly, it's a it's a small 811 00:39:23,280 --> 00:39:27,120 Speaker 1: easy step in order to help protect yourself. I want 812 00:39:27,120 --> 00:39:29,839 Speaker 1: to ask about book keeping in payroll, and oddly enough 813 00:39:29,880 --> 00:39:33,480 Speaker 1: we actually do these in house because Matt is an 814 00:39:33,480 --> 00:39:37,319 Speaker 1: oddball and like really enjoy it. Yeah, so he's got 815 00:39:37,360 --> 00:39:40,960 Speaker 1: this spreadsheet all worked out and but but most folks 816 00:39:41,080 --> 00:39:42,960 Speaker 1: end up using some sort of software to help with 817 00:39:43,000 --> 00:39:45,160 Speaker 1: both those kind of things. Um, do you have tips 818 00:39:45,320 --> 00:39:47,319 Speaker 1: on how to d I y this, how to do 819 00:39:47,360 --> 00:39:50,440 Speaker 1: it well? Or for picking a great software that's going 820 00:39:50,480 --> 00:39:54,400 Speaker 1: to actually make those tasks pretty simple. So I'll disclaim 821 00:39:54,400 --> 00:39:57,160 Speaker 1: what I use exclusively QuickBooks Online and Gusto, and I 822 00:39:57,200 --> 00:40:00,839 Speaker 1: recommend both. I love both and sell officially. I tell 823 00:40:00,840 --> 00:40:02,640 Speaker 1: everyone to use them because I would love to work 824 00:40:02,640 --> 00:40:04,920 Speaker 1: with them in the future, so I want them to 825 00:40:04,920 --> 00:40:07,680 Speaker 1: be on our our systems. But I also like them 826 00:40:07,680 --> 00:40:11,080 Speaker 1: because they're functional, they're user friendly. Um, I find Gusto 827 00:40:11,160 --> 00:40:13,879 Speaker 1: to be my favorite payroll provider because they're just so 828 00:40:14,719 --> 00:40:16,960 Speaker 1: with the times in terms of language they're using on 829 00:40:17,000 --> 00:40:20,120 Speaker 1: their website and how to do things and navigating. It's 830 00:40:20,120 --> 00:40:23,200 Speaker 1: just it's very friendly to a online business owner who's 831 00:40:23,239 --> 00:40:26,120 Speaker 1: relatively tech savvy, who understands kind of just the flow 832 00:40:26,120 --> 00:40:28,800 Speaker 1: of a website. I mean, it's it's easy to run reports, 833 00:40:28,800 --> 00:40:30,879 Speaker 1: it's easy to find what you need. So I really 834 00:40:30,920 --> 00:40:34,200 Speaker 1: like Gusto and basically like the opposite of any I 835 00:40:34,280 --> 00:40:39,200 Speaker 1: r S website exactly. And I love quick Books Online 836 00:40:39,239 --> 00:40:41,440 Speaker 1: because it is web based. I can access it anywhere. 837 00:40:41,840 --> 00:40:44,640 Speaker 1: I can access all my clients very easily. And um, 838 00:40:44,680 --> 00:40:47,040 Speaker 1: the interface is pretty simple where you just organize your 839 00:40:47,040 --> 00:40:50,880 Speaker 1: transactions every month, you can reconcile quickly and you know 840 00:40:51,160 --> 00:40:54,319 Speaker 1: spend maybe a couple hours a month depending on how 841 00:40:54,360 --> 00:40:57,560 Speaker 1: many transactions you have, and be done nice. Both of 842 00:40:57,560 --> 00:40:59,200 Speaker 1: those cost a little bit of money, is that right? 843 00:40:59,640 --> 00:41:02,120 Speaker 1: That correct? Yeah, they it depends on what level of 844 00:41:02,120 --> 00:41:05,280 Speaker 1: service you need. But you know you're looking at maybe 845 00:41:05,320 --> 00:41:07,920 Speaker 1: a hundred dollars a month between both of them combined. 846 00:41:08,120 --> 00:41:10,960 Speaker 1: So depending on the size of your business, Yeah, it's 847 00:41:10,960 --> 00:41:13,680 Speaker 1: well worth it for the efficiencies. In my opinion, I 848 00:41:13,719 --> 00:41:17,439 Speaker 1: think that I recommend any business owner use some type 849 00:41:17,440 --> 00:41:20,880 Speaker 1: of software provider that helps gain efficiency and automation and 850 00:41:21,320 --> 00:41:23,359 Speaker 1: we'll allow you to report and do things like that. 851 00:41:23,400 --> 00:41:25,719 Speaker 1: I mean as tax professionals too. If you want to 852 00:41:25,719 --> 00:41:28,960 Speaker 1: work with a tax professional, they're going to demand something 853 00:41:29,080 --> 00:41:33,759 Speaker 1: besides um, typically a spreadsheet or something I say, something 854 00:41:33,760 --> 00:41:38,520 Speaker 1: better than crayon on an actin figure. Yeah, exactly, like 855 00:41:38,560 --> 00:41:41,320 Speaker 1: please anything anything. I mean, a number written down is 856 00:41:41,360 --> 00:41:43,680 Speaker 1: better than a number not written down. But if I 857 00:41:43,719 --> 00:41:45,880 Speaker 1: can see it, understand it, and it's in a format 858 00:41:45,920 --> 00:41:49,000 Speaker 1: that is easily understood by a professional, it's even better. 859 00:41:49,440 --> 00:41:51,319 Speaker 1: Got it? Yeah, So I mean, are there some free 860 00:41:51,360 --> 00:41:53,839 Speaker 1: options out there though that would you know? That's maybe 861 00:41:53,880 --> 00:41:56,279 Speaker 1: somewhere in between the crayon on, a Napkin Uh and 862 00:41:56,320 --> 00:41:58,399 Speaker 1: Gusto is is there something kind of in between that 863 00:41:58,600 --> 00:42:00,840 Speaker 1: happens to be free. Yeah, so there's a couple of 864 00:42:00,880 --> 00:42:02,640 Speaker 1: ways you can do that. I think Wave, if I'm 865 00:42:02,640 --> 00:42:05,200 Speaker 1: not mistaken, has a free option. But you have to 866 00:42:05,239 --> 00:42:07,440 Speaker 1: be savvy enough with book keeping. This is the thing. 867 00:42:07,719 --> 00:42:08,960 Speaker 1: You can do it all for free. You can even 868 00:42:08,960 --> 00:42:11,919 Speaker 1: build Excel spreadsheets, but you have to know what you're doing. 869 00:42:12,280 --> 00:42:15,040 Speaker 1: And the problem is that most entrepreneurs will try to 870 00:42:15,080 --> 00:42:16,640 Speaker 1: do it on their own with the spreadsheets and just 871 00:42:16,880 --> 00:42:20,160 Speaker 1: organizing the activity. But that's half the equation. You have 872 00:42:20,200 --> 00:42:22,520 Speaker 1: to go back and reconcile to your bank account. And 873 00:42:22,920 --> 00:42:25,200 Speaker 1: we want to be able to run reports on demand 874 00:42:25,239 --> 00:42:28,920 Speaker 1: pretty much and see trends and see you know, goals 875 00:42:29,080 --> 00:42:32,319 Speaker 1: versus actual And there's a lot of insights that some 876 00:42:32,360 --> 00:42:35,000 Speaker 1: of these tools can give you that would be really 877 00:42:35,000 --> 00:42:38,200 Speaker 1: complicated to implement on spreadsheets on your own. It's true, 878 00:42:38,200 --> 00:42:40,520 Speaker 1: I want to know, Matt is Shanna making you think twice, 879 00:42:40,800 --> 00:42:43,839 Speaker 1: I'm not going to here. Hey, I've got I've got 880 00:42:43,840 --> 00:42:47,600 Speaker 1: the spreadsheets figured out, not just in categorizing expenses, but 881 00:42:48,080 --> 00:42:50,040 Speaker 1: that the payroll portion as well. But I can't on 882 00:42:50,160 --> 00:42:52,880 Speaker 1: demand run reports. I will say that, so we'll think 883 00:42:52,920 --> 00:42:56,000 Speaker 1: about it. Thank you. I will also want to just 884 00:42:56,080 --> 00:42:58,839 Speaker 1: kind of ask you because obviously we we mentioned at 885 00:42:58,840 --> 00:43:01,680 Speaker 1: the beginning episode we're we're basically a month away from 886 00:43:01,840 --> 00:43:06,600 Speaker 1: the personal tax filing. Yeah, but the truth is there's 887 00:43:06,760 --> 00:43:08,279 Speaker 1: very little we can do right now when it comes 888 00:43:08,280 --> 00:43:12,239 Speaker 1: to taxes on somebody's personal tax return. They can still 889 00:43:12,239 --> 00:43:14,520 Speaker 1: they still have time to contribute, let's say to a 890 00:43:14,600 --> 00:43:17,920 Speaker 1: roth ira a for if they haven't done so yet. 891 00:43:17,960 --> 00:43:20,319 Speaker 1: There there are small little changes that they can make, 892 00:43:20,840 --> 00:43:23,680 Speaker 1: but for the most part it's kind of baked in right. Um, 893 00:43:23,920 --> 00:43:25,600 Speaker 1: but but so what would you say people can do 894 00:43:25,640 --> 00:43:29,440 Speaker 1: starting now, starting in the spring of to start optimizing 895 00:43:29,440 --> 00:43:33,719 Speaker 1: the two taxes for for next year. So, if you 896 00:43:33,840 --> 00:43:36,120 Speaker 1: think you might be a candidate for the S corporation, 897 00:43:36,680 --> 00:43:40,040 Speaker 1: then the original deadline to file your S corporation is 898 00:43:40,120 --> 00:43:43,000 Speaker 1: March fift actually, but you can still do a late 899 00:43:43,040 --> 00:43:46,319 Speaker 1: election for and I say get that filed as soon 900 00:43:46,360 --> 00:43:48,600 Speaker 1: as possible. If you're thinking you might be over that 901 00:43:48,680 --> 00:43:51,520 Speaker 1: fift k profit threshold and you think that you want 902 00:43:51,560 --> 00:43:54,480 Speaker 1: to take on the responsibility of an S corporation, we 903 00:43:54,600 --> 00:43:56,520 Speaker 1: actually have on our podcast, we have a three part 904 00:43:56,560 --> 00:43:59,640 Speaker 1: series all about es Corps, which teaches everyone about that, 905 00:44:00,160 --> 00:44:02,000 Speaker 1: but they if you think you're a good candidate, I 906 00:44:02,000 --> 00:44:04,520 Speaker 1: would definitely look into that. And the other thing to 907 00:44:04,560 --> 00:44:07,040 Speaker 1: do is really get into a good habit of bookkeeping 908 00:44:07,239 --> 00:44:09,440 Speaker 1: where you're not just going to catch up every quarter 909 00:44:09,520 --> 00:44:11,560 Speaker 1: or every six months or every year. You want to 910 00:44:11,600 --> 00:44:13,640 Speaker 1: be able to have that data on demand so that 911 00:44:13,680 --> 00:44:16,000 Speaker 1: you can make decisions in your business based on that 912 00:44:16,480 --> 00:44:19,920 Speaker 1: and you could actually implement strategies. So, for example, if 913 00:44:19,920 --> 00:44:23,200 Speaker 1: I have a client who comes to the table March 914 00:44:23,280 --> 00:44:25,759 Speaker 1: thirty one and they have all their books done, they 915 00:44:25,800 --> 00:44:27,920 Speaker 1: have a profit and loss for Q one, we can 916 00:44:27,960 --> 00:44:30,440 Speaker 1: sit there and we can start playing with how do 917 00:44:30,520 --> 00:44:34,160 Speaker 1: we actually reduce taxes using the information on this sheet? Right, 918 00:44:34,520 --> 00:44:36,879 Speaker 1: But if you don't have that ready, then I can't 919 00:44:36,920 --> 00:44:40,759 Speaker 1: do much magic. So you really want to be equipped 920 00:44:40,760 --> 00:44:43,560 Speaker 1: and consistent, and I would say that if you're not 921 00:44:43,640 --> 00:44:46,400 Speaker 1: doing that, and we're already at Q one, this is 922 00:44:46,400 --> 00:44:49,440 Speaker 1: the time to really get consistent and disciplined about updating 923 00:44:49,480 --> 00:44:52,040 Speaker 1: your books, because what you don't realize is that is 924 00:44:52,080 --> 00:44:54,279 Speaker 1: the food journal of your business. And if you want 925 00:44:54,280 --> 00:44:56,080 Speaker 1: to train like an athlete, and if you want to 926 00:44:56,120 --> 00:44:58,919 Speaker 1: perform and you want to go to the Olympics. Then 927 00:44:59,360 --> 00:45:01,640 Speaker 1: you gotta start with what are you putting in your body, 928 00:45:01,680 --> 00:45:03,960 Speaker 1: what are you exercising, what are you doing on a 929 00:45:04,040 --> 00:45:07,200 Speaker 1: daily basis? And that bookkeeping is that data that if 930 00:45:07,239 --> 00:45:09,279 Speaker 1: I were your trainer I would need to see in 931 00:45:09,360 --> 00:45:11,480 Speaker 1: order to tell you what to do. That's right. Just 932 00:45:11,520 --> 00:45:13,080 Speaker 1: like you said at the beginning, it's just a story 933 00:45:13,080 --> 00:45:15,239 Speaker 1: of how your money spent the year, and you need 934 00:45:15,280 --> 00:45:19,480 Speaker 1: to start writing those chapters right now, months a month, Shanny, 935 00:45:19,480 --> 00:45:21,880 Speaker 1: this has been an awesome conversation. Will definitely link to 936 00:45:21,960 --> 00:45:25,760 Speaker 1: that series that you mentioned there on escorpse to your podcast. 937 00:45:25,840 --> 00:45:27,840 Speaker 1: But where else can folks learn more about you what 938 00:45:27,880 --> 00:45:30,719 Speaker 1: you're up to, So obviously the Keep What You Earned Podcast. 939 00:45:30,800 --> 00:45:33,279 Speaker 1: Would love for you guys to join me over there 940 00:45:33,280 --> 00:45:37,359 Speaker 1: and learn more there. And I am very active on Instagram. 941 00:45:37,360 --> 00:45:40,720 Speaker 1: My handle is at Shannon K. Weinstein. I'm dishing out 942 00:45:41,160 --> 00:45:43,800 Speaker 1: educational content. I try to make it funny, but I 943 00:45:43,840 --> 00:45:45,480 Speaker 1: don't want to tell you I'm funny, because then I 944 00:45:45,560 --> 00:45:49,319 Speaker 1: might be over promising. Uh, but it's very approachable. I 945 00:45:49,320 --> 00:45:52,040 Speaker 1: call it the judgment and jargon free zone. So if 946 00:45:52,120 --> 00:45:55,040 Speaker 1: you hate accounting, jargon and old white guys telling you 947 00:45:55,040 --> 00:45:56,799 Speaker 1: what to do with your money. Come on over to 948 00:45:56,840 --> 00:45:59,480 Speaker 1: Instagram and let's hang out. She's a c p A 949 00:45:59,600 --> 00:46:02,759 Speaker 1: and can edian Shannon Shannon, thank you so much for 950 00:46:02,840 --> 00:46:05,279 Speaker 1: joining us today. We really appreciate it. Yeah, thank you, 951 00:46:05,320 --> 00:46:07,880 Speaker 1: my pleasure. All right, Matt, that was a great conversation. 952 00:46:07,920 --> 00:46:10,319 Speaker 1: It's always nice to encounter a witty cp A. This 953 00:46:10,400 --> 00:46:12,360 Speaker 1: might be my the first time that's happened to me. 954 00:46:13,920 --> 00:46:16,080 Speaker 1: But c p A is not always known for their 955 00:46:16,080 --> 00:46:19,440 Speaker 1: wet no often known to be dry. But this conversation 956 00:46:19,480 --> 00:46:21,880 Speaker 1: was anything but. I think Shannon offered a lot of 957 00:46:21,920 --> 00:46:23,880 Speaker 1: great advice. But yeah, what was your big takeaway from 958 00:46:23,920 --> 00:46:26,319 Speaker 1: this compound? She had a lot of good knowledge to 959 00:46:26,320 --> 00:46:28,760 Speaker 1: share with us. And but if I had to choose 960 00:46:28,920 --> 00:46:32,600 Speaker 1: one tidbit, it would be that you should probably be 961 00:46:32,680 --> 00:46:35,520 Speaker 1: considering a tax professional. This is something that we harp 962 00:46:35,560 --> 00:46:37,160 Speaker 1: on a decent bit, right, Like when it comes to 963 00:46:37,160 --> 00:46:39,840 Speaker 1: other aspects of our finances, there's a lot that you 964 00:46:39,840 --> 00:46:42,040 Speaker 1: can d I Y, well, you don't necessarily need to 965 00:46:42,080 --> 00:46:44,520 Speaker 1: hire somebody to tell you to start funneling money into 966 00:46:44,640 --> 00:46:47,480 Speaker 1: your four one k at work, or to open a 967 00:46:47,560 --> 00:46:49,920 Speaker 1: roth iray and help you choose the exact fund that 968 00:46:49,960 --> 00:46:52,480 Speaker 1: you're going to all that's so easy. Uh, you just 969 00:46:52,480 --> 00:46:54,839 Speaker 1: said it and forget it. But with taxes, you can't 970 00:46:54,880 --> 00:46:56,480 Speaker 1: set it and forget it like that is something that 971 00:46:56,560 --> 00:46:59,760 Speaker 1: is constantly evolving. It is good to have a professional 972 00:46:59,760 --> 00:47:01,799 Speaker 1: who knows the ins and the outs, the laws that 973 00:47:01,800 --> 00:47:04,120 Speaker 1: have changed for that year. And aside from the laws, 974 00:47:04,160 --> 00:47:06,560 Speaker 1: she knows like she's talked with people who worked at 975 00:47:06,560 --> 00:47:08,279 Speaker 1: the I R S. Like she, you know, talked to 976 00:47:08,320 --> 00:47:11,279 Speaker 1: them on the phone when nobody else can. By the way, 977 00:47:11,440 --> 00:47:14,040 Speaker 1: she's got the inside line, but I don't. She's not 978 00:47:14,160 --> 00:47:16,480 Speaker 1: alone in that c p A S and tax professionals. 979 00:47:16,520 --> 00:47:18,400 Speaker 1: They are in contact with the I R S. And 980 00:47:18,440 --> 00:47:20,279 Speaker 1: like you know, she knows somebody box trucks there are 981 00:47:20,680 --> 00:47:23,000 Speaker 1: outside of the building and how backed up they are. 982 00:47:23,080 --> 00:47:26,160 Speaker 1: So you know, again, if we haven't already made enough 983 00:47:26,200 --> 00:47:28,600 Speaker 1: of the case to hire a tax professional, hopefully she 984 00:47:28,760 --> 00:47:31,160 Speaker 1: has done that for you. And especially if you have 985 00:47:31,239 --> 00:47:34,560 Speaker 1: a small business. Uh, it's time to specifically start looking 986 00:47:34,560 --> 00:47:38,080 Speaker 1: for somebody within your industry. I thought that was a 987 00:47:38,080 --> 00:47:40,480 Speaker 1: little subpoint. But you don't necessarily need to find somebody 988 00:47:40,520 --> 00:47:42,880 Speaker 1: that's right there in your town, but specifically hire somebody 989 00:47:42,920 --> 00:47:46,279 Speaker 1: who specializes in the industry. In which your business operates. Yeah, 990 00:47:46,320 --> 00:47:49,120 Speaker 1: hire a specialist, right, don't just pick somebody out of 991 00:47:49,160 --> 00:47:50,879 Speaker 1: the yellow pages, which I don't even know if those 992 00:47:50,920 --> 00:47:53,520 Speaker 1: exist anymore. But but hire someone an interview them, ask 993 00:47:53,560 --> 00:47:55,480 Speaker 1: some questions like, say, have you worked with people in 994 00:47:55,480 --> 00:47:57,879 Speaker 1: my situation before? I think it's a really good question 995 00:47:57,920 --> 00:48:00,680 Speaker 1: to ask when you're looking to hire a civic individual. 996 00:48:00,760 --> 00:48:02,520 Speaker 1: But how about you, man, what was your big takeaway 997 00:48:02,600 --> 00:48:04,880 Speaker 1: from this conversation? All right? I think my big takeaway 998 00:48:04,960 --> 00:48:07,400 Speaker 1: was go start a business, even a small one. I 999 00:48:07,440 --> 00:48:10,240 Speaker 1: like it, and I think most people out there can 1000 00:48:10,360 --> 00:48:13,359 Speaker 1: find some way. I think one it provides that diversification 1001 00:48:13,360 --> 00:48:15,319 Speaker 1: of income. We didn't really talk about that, but it's 1002 00:48:15,400 --> 00:48:18,600 Speaker 1: nice to make money in multiple ways. It provides just 1003 00:48:19,000 --> 00:48:22,360 Speaker 1: a little more security financially speaking, and and there are 1004 00:48:22,400 --> 00:48:24,560 Speaker 1: a lot of benefits to owning your own business that 1005 00:48:24,600 --> 00:48:26,600 Speaker 1: we didn't talk about, Like we we only talked about 1006 00:48:26,600 --> 00:48:30,000 Speaker 1: the tax benefits from Shannon standpoint, but there's a lot 1007 00:48:30,000 --> 00:48:33,239 Speaker 1: of autonomy doing what you love working for yourself. We 1008 00:48:33,239 --> 00:48:34,839 Speaker 1: didn't talk about any of the We didn't talk about 1009 00:48:34,840 --> 00:48:36,160 Speaker 1: any of that. So there are a lot of pluses 1010 00:48:36,160 --> 00:48:38,160 Speaker 1: to starting your own business and kind of like going 1011 00:48:38,320 --> 00:48:40,839 Speaker 1: in that direction, you know, at least getting started, but 1012 00:48:41,000 --> 00:48:43,560 Speaker 1: they're also benefits tax wise, and so I think a 1013 00:48:43,560 --> 00:48:46,120 Speaker 1: lot of people, me included a lot of years ago, 1014 00:48:46,160 --> 00:48:48,359 Speaker 1: I was like, well, but no, it seems like it's 1015 00:48:48,400 --> 00:48:50,960 Speaker 1: better tax wise to work for somebody else. And and 1016 00:48:51,000 --> 00:48:54,240 Speaker 1: also there you know, you get healthcare through your employer too. 1017 00:48:54,480 --> 00:48:58,320 Speaker 1: But I think as I moved further along into starting, 1018 00:48:58,560 --> 00:49:00,759 Speaker 1: we started this business together, and it's like, wow, there 1019 00:49:00,760 --> 00:49:02,000 Speaker 1: are there are a lot of things that you can 1020 00:49:02,040 --> 00:49:05,080 Speaker 1: control as the business owner, including how much in taxes 1021 00:49:05,160 --> 00:49:07,240 Speaker 1: that you pay, at least to a certain extent, right, 1022 00:49:07,320 --> 00:49:09,640 Speaker 1: So I think, yeah, that's a good call to action 1023 00:49:09,719 --> 00:49:11,640 Speaker 1: for a lot of a lot of how the money listeners. 1024 00:49:11,640 --> 00:49:14,439 Speaker 1: It's like, if you've been if you've been thinking about it, well, 1025 00:49:15,120 --> 00:49:18,200 Speaker 1: maybe add this other piece of information into your decision 1026 00:49:18,200 --> 00:49:21,640 Speaker 1: making process, because opening your own business could be smart 1027 00:49:21,719 --> 00:49:23,919 Speaker 1: on a whole lot of levels. Most definitely. Man, let's 1028 00:49:23,920 --> 00:49:26,040 Speaker 1: get back to the beer. You and I enjoyed a 1029 00:49:26,160 --> 00:49:29,719 Speaker 1: quantum desolation by a little cottage. What your thoughts on 1030 00:49:29,760 --> 00:49:31,640 Speaker 1: this double? I p A all right, So anytime I 1031 00:49:31,680 --> 00:49:34,560 Speaker 1: hear desolation, I think the desolation of small I think 1032 00:49:35,120 --> 00:49:38,640 Speaker 1: you think of Benedict comber bats. Usually you played the 1033 00:49:38,680 --> 00:49:41,400 Speaker 1: voice of Smog in the movies. But the best way 1034 00:49:41,440 --> 00:49:44,440 Speaker 1: I can describe this beer is it kind of was 1035 00:49:44,520 --> 00:49:47,600 Speaker 1: the liquid form of just straight up hot pellets like 1036 00:49:47,640 --> 00:49:49,000 Speaker 1: I would just like shove some of my mouth and 1037 00:49:49,000 --> 00:49:52,920 Speaker 1: I started chewing them. It's which honestly sounds terrible, Like 1038 00:49:52,920 --> 00:49:55,439 Speaker 1: I'm sure that that would be disgusting. It probably wouldn 1039 00:49:55,440 --> 00:49:57,480 Speaker 1: be nasty, But the way it smells, I mean, I'm 1040 00:49:57,560 --> 00:49:59,399 Speaker 1: totally with you. I I totally get what you're saying. 1041 00:49:59,440 --> 00:50:01,880 Speaker 1: This is a at double I p A. That's I 1042 00:50:01,920 --> 00:50:05,120 Speaker 1: assume this dry hopped. It's hazy. It's incredible. Honestly, it 1043 00:50:05,120 --> 00:50:07,520 Speaker 1: reminds me like it has a lot of characteristics that 1044 00:50:07,520 --> 00:50:09,680 Speaker 1: you find in some of the burial beers and a 1045 00:50:09,719 --> 00:50:12,160 Speaker 1: lot of their double dry hops hazy's. But I am 1046 00:50:12,200 --> 00:50:13,839 Speaker 1: so glad you and I got to enjoy this one. 1047 00:50:13,880 --> 00:50:16,200 Speaker 1: Big props to John out there at Little Cottage for 1048 00:50:16,360 --> 00:50:19,800 Speaker 1: making such amazing beers for us here in Atlanta. But Joel, 1049 00:50:19,840 --> 00:50:22,040 Speaker 1: that's gonna be up buddy for this episode. Will make 1050 00:50:22,040 --> 00:50:25,840 Speaker 1: sure to link to everything that we mentioned during this episode. 1051 00:50:26,160 --> 00:50:27,600 Speaker 1: They will be in the show notes up on our 1052 00:50:27,600 --> 00:50:31,200 Speaker 1: websites and so until next time, best friends out, best 1053 00:50:31,320 --> 00:50:32,120 Speaker 1: friends out