The Ultimate Tax Strategy: Unleashing the Power of Your Small Business

💰Having a side hustle can generate additional tax-free income that can be used to pay off debts and invest in passive income streams.

📱Your cell phone expenses, including the cost of the phone, accessories, and service, can be 100% tax deductible if used for your small business.

🚗If you use your vehicle for business purposes, you can deduct the actual expenses or use the standard mileage rate to offset your tax liability.

🍽️Dining expenses related to your small business, such as business meetings and client entertainment, can be 50% tax deductible.

🧳Travel expenses incurred for business purposes, including conferences, meetings, and site visits, are 100% tax deductible.

Do I need to issue a 1099 to my kids if they help me in my small business?

—No, if your kids are under 18 years old and you're a sole proprietorship or a partnership with only you and your spouse as partners, you don't need to issue a 1099. However, it's still important to keep records of the payments you make to them.

Can I write off my health insurance premiums?

—Yes, as a self-employed individual, you can deduct your health insurance premiums as an above-the-line deduction on your personal tax return.

What types of equipment can I write off for my small business?

—You can write off any equipment or tools that are used exclusively for your small business, such as cameras, tripods, computers, and software.

Can I write off the cost of attending conferences or seminars?

—Yes, expenses related to attending conferences, seminars, and workshops that are directly related to your small business are tax deductible. This includes registration fees, travel expenses, and accommodation costs.

Can I deduct the cost of renting a space for my home office?

—Yes, if you meet the requirements, you can deduct the cost of renting a separate space exclusively for your home office. The deduction is based on the percentage of your home's total square footage that is used for business purposes.

00:00In this video, Mark Kohler, a CPA attorney with over 25 years of experience, shares his ultimate tax strategy for small business owners.

05:30Mark explains the importance of having a side hustle to generate additional tax-free income that can be used to pay off debts and invest in passive income streams.

08:00He identifies the top 10 tax deductions for small businesses, including cell phone expenses, vehicle usage, dining expenses, and travel costs.

14:20Mark also answers common questions about issuing 1099s to kids, deducting health insurance premiums, writing off equipment expenses, and deducting conference costs.

20:15He concludes the video by emphasizing the importance of utilizing these tax deductions to reduce your tax burden and maximize your savings.