In this lively episode of the Teaching Tax Flow podcast, hosts John and Chris delve into the outcomes of the recent election, marking a notable shift with Donald Trump poised to return to the presidency. This episode serves as a third installment in their White House walkthrough series, carrying listeners through an engaging discussion on the implications of Trump's presidency concerning tax legislation, economic strategies, and potential changes to financial policies. With a blend of humor and insight, the hosts navigate through what these political shifts might mean for different stakeholders, from everyday American taxpayers to large business entities.

The conversation is particularly centered around the intricate proposals suggested by Trump, such as the extension of the Tax Cuts and Jobs Act and specific deductions. Chris unpacks some complex economic concepts, including bonus depreciation and the SALT tax deduction, underlining how these could affect both businesses and individual taxpayers. The episode also highlights the essential process of how tax proposals become law, providing listeners with a comprehensive understanding of legislative procedures in the tax domain. This episode is a valuable listen for anyone looking to stay informed on fiscal policies and the political shifts shaping them.

Key Takeaways:

• Election Outcomes: Donald Trump is set to return as president, prompting potential changes in tax policies and economic strategies.
• Tax Policy Changes: Discussions include extending the Tax Cuts and Jobs Act and 100% bonus depreciation, with implications for business taxation.
• Legislative Process: The episode outlines the route from proposal to law, vital for understanding how tax policies are decided and implemented.
• Taxation Nuances: Focus on deductions, including SALT and tax exemptions on various forms of income such as Social Security.
• Practical Insights: The podcast offers strategic tax planning insights, particularly beneficial for U.S. citizens in higher tax liability states.

Notable Quotes:

1. "So ultimately, the theme would be whatever we have right now would continue moving forward in general. And I've said many, many times that taxes right now are on sale." - Chris Picciurro
2. "We're just pontificating right now, but that's what this episode's about. Like, gosh, okay, we finally know where the heck we're at with this election and let's dive in and look at what's getting proposed." - Chris Picciurro
3. "Social Security started becoming taxable. And now for many, many people, up to 80, 85% of the Social Security benefits are taxable." - Chris Picciurro
4. "Bonus depreciation is the backbone of cost segregation studies for our real estate investors." - Chris Picciurro
5. "Ultimately [with SALT deductions], if you're paying a tax somewhere else, you should probably get a deduction for it. I mean, that seems fair." - Chris Picciurro

Resources:

• Defeating Taxes

Episode Sponsor:
Sunsets & Dinks
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• (00:05) - Election Results, Tax Plans, and Political Humor
• (06:48) - Proposed Tax Changes and Their Potential Implications
• (13:31) - Community Engagement and Tax Law Discussions on Facebook
• (15:43) - Proposed Tax Exemption on Social Security Benefits
• (19:04) - Tax Policy Changes and Their Impact on Business and Individuals
• (26:18) - The Complex Process of Tax Legislation in the US
• (34:22) - Connecting Communities with Expert Tax and Investment Advice

In this episode of the Teaching Tax Flow podcast, co-hosts John Tripolsky and Chris Picciurro tackle a variety of tax-related questions in a rapid-fire format. They begin by highlighting the role of CPAs and EAs in tax preparation and planning, emphasizing the proactive approach to managing taxes. The episode provides listeners with practical insights into estate planning and tax optimization.

Throughout the episode, John and Chris delve into important tax topics such as common misconceptions about taxes, the significance of maintaining accurate financial records, and the benefits of being self-employed. They also discuss income shifting strategies like paying children legally for work done in a family business. The duo provides advice on hiring tax professionals and bookkeepers, ensuring listeners have the tools to nurture beneficial financial relationships. This episode is rich with actionable tips for both individual taxpayers and business owners, highlighting the importance of community and proactive tax management.

Key Takeaways:

• Proactive Tax Planning: CPAs and EAs can significantly impact tax outcomes through proactive strategy and planning, ensuring individuals and businesses pay the least tax legally and ethically.
• Common Misconception: A prevalent myth is that taxes are unmanageable, but through strategic actions, taxpayers can control their tax liabilities.
• Income Structuring: Shifting income to family members, like paying children, can optimize tax savings if done legally and with clear records.
• Accurate Record Management: Maintaining detailed financial records is essential for businesses to maximize deductions and ensure compliance in case of audits.
• Community Support: Being part of a community and utilizing resources like the Teaching Tax Flow group can enhance tax knowledge and confidence in financial decisions.

Notable Quotes:

1. "You control your tax by the actions that you take, or lack of actions." – Chris Picciurro
2. "Tax laws are written to encourage and discourage certain behavior." – Chris Picciurro
3. "A tax credit is better than a deduction 99% of the time." – Chris Picciurro
4. "It's essential for a business to keep accurate financial records." – Chris Picciurro
5. "The best time to have your tax return completed is any time before October 15th that legally and ethically gives you the best result." – Chris Picciurro

Resources:

• Teaching Tax Flow community on Facebook: DefeatingTaxes.com
• Teaching Tax Flow YouTube Channel with over 200 videos for tax tips and strategies.

Episode Sponsor:
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Listeners are encouraged to tune in to the full episode for a deeper dive into these topics and stay updated with future discussions and insights shared on the Teaching Tax Flow podcast.

• (00:02) - Rapid Fire Tax Questions with Chris Pacquiao
• (03:34) - Understanding the Role of CPAs and EAs in Tax Planning
• (13:25) - Tax Benefits and Challenges of Self-Employment
• (20:41) - Managing Tax Payments and Understanding Quarterly Tax Obligations
• (23:50) - Essential Tips for Hiring Tax Professionals and Effective Tax Planning
• (30:02) - Engaging Tax Discussions and Upcoming Surprising Topics

About the Guest: Kelly Bender
Kelly is the President of TBS in Pittsburgh, Pennsylvania, and an accomplished tax professional with a motto of "life untaxed." She is recognized for her proactive approach to tax and accounting services and has significantly expanded her practice through strategic acquisitions. Kelly is an enrolled agent and holds the prestigious role of an instructor for the National Association of Tax Professionals. She has presented at various conferences, including the Taxposium, highlighting her expertise in accounting for family-owned businesses.

Episode Summary:

In this episode of the Teaching Tax Flow podcast, hosts Chris Picciurro and John Tripolsky engage in an enriching discussion with Kelly Bender, a seasoned tax professional, about the life cycle stages of a business. As businesses evolve from the startup phase through growth to transition, Kelly provides substantial insights into tax strategies, operational tips, and planning to ensure financial health and longevity.

During the conversation, Kelly emphasizes the importance of choosing the right entity structure from the outset and how those decisions should align with personal and long-term business goals. Navigating the growth phase, Kelly discusses strategies for operational delegation, particularly outsourcing bookkeeping functions, to allow for efficient scaling. Moreover, she sheds light on transition planning for business owners looking to exit or sell, advising them to start planning years ahead to maximize their business's value and ensure a smooth transition. Tune in for practical business advice that can guide you toward achieving robust financial health and success.

Key Takeaways:

• Always begin with choosing the proper entity structure that aligns with your business goals.
• In the growth phase, consider outsourcing your bookkeeping to focus on strategic business development.
• Transition planning should ideally start five years before you wish to exit, ensuring maximum value and smooth succession.
• Effective communication and humility in leadership are crucial, especially when steering family-owned businesses.
• Use personalized tax strategies tailored to your situation, incorporating personal and business goals for optimal outcomes.

Notable Quotes:

• "The only way we can multiply ourselves is by delegating things that are not where our primary brainpower is used best." – Kelly Bender
• "It's better to exit with a plan than to exit by accident." – Kelly Bender
• "As soon as you start to feel like you're not giving the bookkeeping enough attention, it's time to let go of the reins." – Kelly Bender.
• "The person who's netting $5,000 a year is a very different conversation than the person netting $50,000 a year." – Kelly Bender.
• "Simple is really better because you don't even know how to handle that yet." – Kelly Bender.

Demonstrating how different phases of business require varied approaches to tax and operational strategies, this episode is a must-listen for any business owner or aspiring entrepreneur looking for actionable advice. Keep following our podcast for more insightful discussions with industry experts!

Episode Sponsor:
Integrated Investment Group

www.integratedig.com

• (00:14) - Exploring Business Life Cycles and Investment Opportunities
• (01:59) - Sports Rivalries and Podcast Guest Dynamics
• (03:38) - Proactive Tax Strategies for Family-Owned Businesses
• (08:21) - Advice for New Business Owners in Their First 24 Months
• (10:12) - The Importance of Proper Entity Structure for Business Success
• (12:59) - The Pitfalls of Unnecessary Business Partnerships
• (14:47) - Strategic Tax Planning for Business Growth and Sustainability
• (19:37) - When to Outsource Bookkeeping and Payroll for Small Businesses
• (22:01) - Successful Business Transitions Through Strategic Planning and Humility
• (27:22) - Balancing Business Risks and Lighthearted Hockey Rivalries

Episode Summary:

In this insightful episode of the Teaching Tax Flow podcast, hosts delve into the tax proposals of former President Donald Trump, as part of their White House Walkthrough series. With input from tax expert Chris Picciurro, the episode breaks down Trump's proposed reforms, comparing them to both current policy and Vice President Harris's outlined plans. It offers a deep dive into potential impacts on business taxes, capital gains, deductions, and the estate tax, providing listeners with a nuanced understanding of how these changes might affect individuals and businesses alike.

Throughout the episode, TTF highlights Trump’s significant tax strategies, including the proposed reduction of corporate tax rates and the introduction of tariffs on imports, particularly from China. Chris Picciurro emphasizes the potential permanency of the Tax Cuts and Jobs Act of 2017 and its implications for both business and personal taxes. The hosts explore contentious subjects such as the exemption of Social Security benefits from tax and the uncharted territory of exempting tip and overtime income from taxation, providing listeners with crucial insights into how these policies could reshape the financial landscape.

Key Takeaways:

• Former President Trump proposes reducing the corporate tax rate and potentially implementing a 15% rate for companies manufacturing in the U.S.
• Plans are on the table for exempting Social Security and tip income from taxation, alongside making the Tax Cuts and Jobs Act of 2017 permanent.
• A proposed 10-20% baseline tariff on all U.S. imports, with a 60% tariff on Chinese imports, could have wide-reaching economic implications.
• The reinstatement of unlimited deductions for state and local taxes (SALT) could significantly benefit high-income earners in higher-tax states.
• Exempting overtime pay from federal taxation is among the unique tax proposals discussed, impacting many American workers.

Notable Quotes:

1. "Your marginal tax rate is way more important than your tax bracket."
2. "The estate tax exemption now, if it comes back down, is going to hit a lot of people that it wouldn't really affect before."
3. "We're doing the best we can here to compare apples and apples, not apples and oranges too much."
4. "Tax laws are written to encourage and discourage certain behavior."
5. "Taxes are on sale. Taxes would potentially go on sale permanently."

Episode Sponsor:
Strategic Associates, LLC
Roger Roundy
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Listen to the full episode to explore comprehensive insights into Trump’s tax plan proposals and how they could potentially impact your financial strategies. Stay tuned for more enlightening content from the Teaching Tax Flow podcast as they continue to provide expert tax insights and strategies.

• (00:04) - Exploring Trump's Tax Proposals on Teaching Tax Flow Podcast
• (02:39) - Trump's Tax Proposal and Its Impact on Corporate Taxes
• (08:16) - Understanding Tax Credits, Deductions, and Their Impact on Income
• (11:31) - Estate Tax Changes and Their Impact on Middle America
• (15:32) - Trump's Tax Proposals and Their Impact on Individuals
• (19:27) - Proposals for Tax Exemptions and Tariffs Impacting the Economy
• (28:06) - Exploring Tax Proposals and Community Engagement in Finance

In this episode of the Teaching Tax Flow podcast, hosts John and Chris delve into the politically charged waters of taxation as part of their White House Walkthroughs series, covering proposed tax changes by current candidates. The focus for this episode is Vice President Kamala Harris's tax proposals, analyzed strictly from a factual perspective using reliable resources like the Tax Foundation.

Chris Picciurro outlines the potential impacts on both corporate and individual taxation, navigating listeners through the intricate possibilities of future tax policies.

This episode examines Harris's initiatives regarding key areas such as business taxes, capital gains, and tax credits. The hosts explain the implications of increasing the corporate tax rate to 28% and taxing long-term capital gains at a higher rate for high-income earners. They highlight proposed changes to the net investment income tax and the introduction of new credits and deductions for tips, families, and housing. As the conversation progresses, Chris outlines the potential broader economic impacts of these proposals, equipping listeners with an informed understanding of what these political discussions might mean for their tax strategies.

Key Takeaways:

• Vice President Kamala Harris proposes increasing the corporate tax rate to 28%, significantly impacting C corporations.
• Changes to capital gains and dividends tax rates could see increases for high-income earners, introducing a higher tax burden on incomes over $1 million.
• Expanding tax credits, such as the child tax credit and earned income credit, aims to provide financial relief across various taxpayer demographics.
• Estate and wealth taxes remain a critical focus area, with potential adjustments given the expiration of the Tax Cuts and Jobs Act.
• Economic implications of these proposed changes could result in a shift in gross domestic product and employment levels according to tax analysis.

Resources:

• Tax Foundation (taxfoundation.org)

Episode Sponsor:
The Mortgage Shop

Listeners are encouraged to explore the complete episode to grasp the nuances of these tax policy discussions and anticipate how they might tailor their own tax strategies effectively. Stay tuned for the subsequent episode, which will cover the proposals by the other major candidate, providing a full spectrum view of potential future taxation landscapes.

• (00:04) - White House Walkthroughs: Analyzing Kamala Harris's Tax Proposals
• (04:53) - Proposed Tax Increases on Corporations and High-Income Capital Gains
• (08:50) - Proposed Tax Changes and Their Impact on Income and Deductions
• (15:34) - Proposed Tax Credit Expansions for Families and Homebuyers
• (22:31) - Tax Planning Amid Potential Legislative Changes and Economic Impacts
• (32:32) - Upcoming Podcast on Trump's Proposals and Tax Changes

About the Guest: Chrissy Siders
Chrissy is a seasoned professional in the credit union industry, having begun her career in 1998. A degree holder from Michigan State University, Chrissy has developed a deep understanding of the financial industry through her extensive work in compliance, fraud, security, and internal audit. Since 2017, she has served as the President and CEO of True Community Credit Union, headquartered in Jackson, Michigan. Under her leadership, the credit union has expanded significantly, undergoing mergers and converting from a federal to a state charter, illustrating her commitment to strategic growth and technology enhancements.

Episode Summary:

In this episode of the Teaching Tax Flow podcast, co-hosts Chris Picciurro and John Tripolsky delve into the intriguing world of financial institutions, focusing on the distinctions and similarities between banks and credit unions. Joining them is Chrissy Siders, the knowledgeable President and CEO of True Community Credit Union, who shares her insights and expertise accumulated over a career that spans more than two decades.

Through engaging dialogue, the episode sheds light on how credit unions and banks differ in their structure, membership requirements, and community involvement, drawing attention to how credit unions operate as not-for-profit cooperatives versus the for-profit orientation of banks. Chrissy Siders elaborates on the evolutionary path of credit unions, detailing their increased involvement with both personal and business banking, and highlighting the notable technological advancements that make credit unions competitive in today's digital-first landscape. Listeners will gain a deeper understanding of these financial institutions and be encouraged to consider the best fit for their personal and business banking needs.

Key Takeaways:

• Credit unions differ fundamentally from banks in their not-for-profit cooperatives structure, with volunteer boards elected by members, contrasting with banks' profit-driven models with shareholders.
• Credit unions are deeply embedded in community engagement, often extending beyond regulatory expectations to deliver impactful local support and services.
• Technological innovation is a priority for credit unions like True Community, with significant investments in digital tools to facilitate banking processes and enhance member experience.
• The eligibility for membership in credit unions involves specific qualifications related to community ties, unlike banks that open accounts to any prospective customer.
• Credit unions are increasingly competitive in offering business, home, and specialty loans, often personalizing services to ensure comprehensive member financial support.

Notable Quotes:

1. "Credit unions are not for profit. We operate with the intent not to make some gigantic profit margin, but to invest back in our members." – Chrissy Siders
2. "It's inherent in our DNA and our business model to be deeply ingrained in the community." – Chrissy Siders
3. "Your money is just as safe in a credit union as it is in a bank, backed by adequate insurance." – Chrissy Siders
4. "We want to partner with you in writing a life story that stretches beyond your imagination." – Chrissy Siders
5. "We can't cookie-cutter approach to everybody. Every individual human is different." – Chrissy Siders

Resources:

• True Community Credit Union

Episode Sponsor:
Integrated Investment Group

www.integratedig.com

• (00:04) - Comparing Banks and Credit Unions: Differences and Similarities
• (03:44) - Credit Union Industry Insights with Chrissy Siders
• (07:49) - Differences Between Credit Unions and Banks in Structure and Community Impact
• (18:27) - Credit Unions' Technological Investments and Fintech Competition
• (22:13) - Credit Unions' Unique Approach to Banking and Risk Management
• (30:06) - Exploring Credit Union Benefits and Community Engagement in Michigan

About the Guest: Alec Hutchin

Alec is the Vice President of Investments for MDS Energy Development, LLC. He holds a degree in economics and has a deep-rooted passion for the natural gas industry, having grown up in western Pennsylvania’s “Gasland.” Alec's career in the oil and gas sector began after an intriguing conversation with Michael Snyder of Snyder Brothers, leading to his pivotal role in raising investments for alternative energy projects. Known for his comprehensive understanding of the industry and the tax benefits associated with oil and gas investments, Alec is an avid supporter of his local economy and an enthusiastic Pittsburgh sports fan.

Episode Summary:

In this episode of the Teaching Tax Flow podcast, hosts Chris Picciurro and John engage in an enlightening conversation with Alec Hutchin, Vice President of Investments for MDS Energy Development, LLC. The discussion delves deep into the intriguing world of oil and gas investment, an area known to offer significant tax benefits but often perceived as exclusive to wealthy individuals. Alec demystifies these tax advantages, explaining concepts like intangible drilling costs (IDC), percentage depletion allowance, and the potential for using oil and gas investments as a strategy for failed 1031 exchanges. This episode not only highlights the financial perks but also emphasizes the broader economic and community benefits of investing in domestic energy production.

Throughout the discussion, Alec shares his journey from aspiring economist to key player in Pennsylvania’s natural gas industry, underscoring the pivotal role of unconventional energy investments in driving local economies. He provides listeners with essential insights into the tax dynamics of oil and gas investments, such as the 100% deduction of IDCs in the first year and the 15% income exclusion via percentage depletion allowance. Alec also gives practical advice on what to look for when considering such investments, making this episode a valuable resource for both current and potential investors interested in diversifying their portfolios and optimizing their tax strategies.

Key Takeaways:

• Intangible Drilling Costs (IDC): Investors in oil and gas projects can claim up to 100% of their investment as a deduction in the first year of drilling.
• Percentage Depletion Allowance: 15% of the income received from oil and gas investments is tax-free, enhancing the investment’s appeal.
• Failed 1031 Exchange Strategy: Oil and gas investments can serve as an effective remedy for managing the tax burden from a failed 1031 exchange.
• Investment Accessibility: Modern scalability and financial models have made oil and gas investments more accessible to a broader range of investors.
• Critical Considerations: Key aspects to evaluate include project leverage, geological understanding of the drilling location, and the experience of the operating team.

Notable Quotes:

1. Alec Hutchin: "We're really excited for what we have in place currently in the states, to be able to really boost and help these tax strategies that you have that you're forming right now."
2. Chris Picciurro: "It's kind of like bonus depreciation that you don't have to recapture."
3. Alec Hutchin: "One of the most powerful codes in the Internal Revenue Code today."
4. Alec Hutchin: "We need affordable energy to make sure that single moms can feed their kids and to make sure that we can still continue to maintain a really prosperous life for the middle class."
5. Chris Picciurro: "It's really cool that you have stayed close to home."

Episode Sponsor:
REPStracker

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• (00:00) - Tax Benefits of Investing in Oil and Gas
• (03:51) - From Economics to Natural Gas: A Journey Back Home
• (08:54) - Tax Advantages of Intangible Drilling Cost Deductions in Oil Investments
• (15:39) - Tax Benefits and Strategies for Oil and Gas Investments
• (20:24) - Key Considerations for Investing in Oil and Gas
• (22:43) - Exploring Alternative Investments and Their Impact on America

In this episode appropriately titled, "Bonus Depreciation Explained," we aim to demystify one of the most queried topics in the tax community. Chris explains the fundamental principles of bonus depreciation, underlining its relevance and the strategic advantage it offers to businesses, particularly small entities and real estate investors. Listeners are treated to practical examples that illustrate how bonus depreciation can be maximized and the potential pitfalls to be wary of.

During this episode, Chris clarifies the specific IRS codes and tax laws governing bonus depreciation and elaborates on the implications of the Tax Cuts and Jobs Act. The episode also covers scenarios such as business asset purchases, the sale of depreciated property, and recapture rules. By simplifying these complex tax concepts, Chris ensures that both novice and experienced taxpayers understand how to leverage bonus depreciation for significant tax savings and compliance. The hosts use real-world examples, like the purchase of industrial equipment and vehicles, to bring clarity to these tax strategies.

Key Takeaways:

• Definition and Importance: Bonus depreciation is a tax incentive allowing businesses to deduct a significant portion of the cost of qualified property in the year it is placed in service.
• Qualifying Assets: It can be applied to both new and used assets, provided they are new to the purchasing business.
• Recapture Rules: Depreciation recapture applies if business use of an asset declines below 50% or if the asset is sold.
• Planning and Strategy: Strategic planning is essential to decide whether to use bonus depreciation, particularly when considering future asset use and potential tax rate changes.
• Tax Cuts and Jobs Act Impact: The Act significantly expanded bonus depreciation, including used assets, and set a phase-down schedule starting from 2023.

Notable Quotes:

1. "Tax laws are written to encourage or discourage certain behavior... this tax law is written to encourage businesses to invest in fixed assets." - Chris Picciurro
2. "Bonus depreciation allows you to front-load a percentage of the asset purchase into the first year and spread the remaining amount over the life of the asset." - Chris Picciurro
3. "The depreciation schedule is vital in keeping track of how much of the asset has been depreciated and what remains." - Chris Picciurro
4. "Placed into service is the most important date for bonus depreciation eligibility." - Chris Picciurro
5. "You don't have to use bonus depreciation; you can elect out if it makes better tax sense." - Chris Picciurro

Episode Sponsor
Sunsets & Dinks
www.teachingtaxflow.com/pickleball
CODE: TTF15

• (00:05) - Excitement Over Bonus Depreciation and Detroit Tigers' Playoff Hunt
• (03:16) - Understanding Bonus Depreciation and Its Economic Implications
• (05:37) - Understanding Bonus Depreciation for Small Business Investments
• (10:37) - Understanding Depreciation Recapture and Bonus Depreciation Strategies
• (18:35) - Understanding Depreciation Schedules and Bonus Depreciation Changes
• (27:29) - Teaching Tax Flow Podcast: Winter Prep and Listener Engagement