In this episode of the Tax and Accounting Ride Along Podcast, we’re breaking down the fundamentals every real estate investor and property owner needs to know about real estate accounting and tax management. Whether you own a single rental or a growing portfolio, understanding the numbers behind your properties is essential to maximizing profits and staying compliant with the IRS. 🏘️💼

Real estate accounting isn’t just about tracking rent—it’s about keeping accurate records, categorizing expenses correctly, and understanding how tax regulations impact your bottom line. We’ll walk through the essentials, including how to properly track income and expenses, monitor cash flow, and reconcile your accounts so you always know the true financial health of your properties.

We’ll also dive into the tax regulations that directly affect real estate owners and why navigating them correctly is so important. From avoiding penalties to making smarter buying, selling, and management decisions, understanding the tax rules can mean the difference between leaving money on the table and building long-term wealth. 💡

In this episode, you’ll learn about the main types of taxes that impact real estate, including property taxes, rental income taxes, capital gains taxes, and transfer taxes. We’ll explain how each one works and why you need to plan for them ahead of time.

Of course, we’ll also cover the tax deductions and benefits available to property owners, such as mortgage interest, operating expenses, depreciation, and even strategies like the 1031 exchange. Used correctly, these tools can significantly reduce your taxable income and improve your overall returns. 💰

We’ll discuss common compliance issues and accounting challenges real estate owners face, including record-keeping mistakes, misunderstood deductions, and keeping up with ever-changing tax laws. You’ll also hear why maintaining detailed financial records isn’t optional—and how good bookkeeping makes tax time far less stressful.

Finally, we’ll talk about tax planning strategies for efficiency, when it makes sense to bring in a professional accountant, and how working with a real estate-savvy tax professional can help you avoid costly mistakes while optimizing your investment strategy.

Proper tax management isn’t just about compliance—it’s about maximizing returns and protecting your investments.

So buckle up and tune in for a practical, no-nonsense breakdown of real estate accounting basics that every property owner should understand. 🎧

This episode of the Tax and Accounting Ride Along Podcast will help you build a stronger financial foundation for your real estate investments—now and in the future.

In this episode of the Tax and Accounting Ride Along Podcast, we’re breaking down one of the most common—and most misunderstood—topics in small business taxation: how LLCs are taxed. If you own an LLC (or are thinking about forming one), this episode is a must-listen. 🚗🎧

LLCs are incredibly popular because of their flexibility, but that flexibility also creates confusion—especially when it comes to taxes. By default, most LLCs are flow-through entities, meaning the business itself doesn’t pay income tax. Instead, profits and losses flow directly onto the owners’ personal tax returns. This structure helps avoid double taxation, but it also comes with important responsibilities that many business owners overlook.

We’ll walk through how single-member LLCs are treated as disregarded entities, while multi-member LLCs are taxed like partnerships by default. We’ll also explain why the number of members matters and how ownership percentages impact who reports what on their tax return.

A major focus of this episode is self-employment tax—what it is, why LLC members are subject to it, and how it can significantly impact your overall tax bill. Many LLC owners are surprised to learn that even though their business is “pass-through,” they’re still responsible for Social Security and Medicare taxes on their share of the profits. 💸

From there, we dive into LLC tax elections. Did you know an LLC can elect to be taxed as an S corporation or even a C corporation in certain situations? We’ll discuss:

When an S corporation election might help reduce self-employment taxes

Why a C corporation election is rarely used—but sometimes strategic

What business owners should understand before making any election with the IRS

We’ll also touch on the importance of proper recordkeeping, staying compliant as tax laws change, and why trying to “DIY” LLC tax planning can lead to costly mistakes.

Most importantly, this episode reinforces a key truth: LLC taxation is not one-size-fits-all. The right tax structure depends on your income, growth plans, and personal financial situation—which is why professional guidance is so critical.

Whether you’re a new LLC owner, a seasoned entrepreneur, or just trying to better understand how your business is taxed, this episode will give you clarity, context, and practical insight you can actually use.

So buckle up and ride along as we demystify LLC taxation and help you make smarter, more informed decisions for your business. 🚦

In this episode of the Tax and Accounting Ride Along Podcast, we’re breaking down one of the most common — and costly — misunderstandings in small business accounting: owner’s draws and member’s draws are not deductible business expenses. 🚨

If you’re a sole proprietor, single-member LLC owner, or part of a multi-member LLC, chances are you’ve taken money out of your business at some point. But are you treating it correctly for accounting and tax purposes? This episode explains why getting this wrong can lead to IRS issues, inaccurate financials, and unexpected tax bills.

We start by clearly defining what an owner’s draw and a member’s draw are from an accounting standpoint, and how they differ depending on your business structure. Then we tackle the big question: why the IRS does not allow these withdrawals as deductible business expenses — even though they reduce your business’s cash balance.

You’ll learn how the IRS views draws as distributions of profit rather than operating expenses, and what that means for your taxable income. We also explain the tax implications, including why business owners are taxed on profits whether or not they actually withdraw the money. 💡

To wrap things up, we share practical tips to help you stay compliant and avoid common mistakes, such as:

• Keeping accurate records of owner’s and member’s draws
• Avoiding draws that exceed business equity
• Understanding how improper draws can lead to double taxation
• Knowing when it’s time to consult a tax professional

If you want cleaner books, fewer tax surprises, and a better understanding of how money really flows in your business, this episode is a must-listen.

🎧 Buckle up for another clarity-packed episode of the Tax and Accounting Ride Along Podcast, where we turn confusing tax rules into practical knowledge you can actually use.

In this episode of the Tax and Accounting Ride Along Podcast, we’re diving into one of the most powerful—and often misunderstood—tools in tax planning: Net Operating Losses (NOLs). Whether you’re a business owner coming off a tough year or a tax professional advising clients, understanding how NOLs work can make a major difference in managing tax liability and cash flow. 📊

A Net Operating Loss occurs when a business’s allowable deductions exceed its taxable income for the year. While no one enjoys operating at a loss, the tax code offers an important silver lining: those losses don’t have to go to waste. NOLs can be used to offset income in other tax years, creating meaningful Net Operating Loss tax benefits that help businesses recover and stabilize financially.

We’ll start by breaking down the fundamentals—what qualifies as an NOL, who can use them, and how they fit into an overall tax strategy. From there, we’ll explore the two key ways NOLs can be applied: carrybacks and carryforwards.

You’ll learn how NOL carrybacks historically allowed businesses to apply losses to prior profitable years and receive tax refunds—and how the Tax Cuts and Jobs Act (TCJA) dramatically changed those rules. For most businesses, carrybacks were eliminated, shifting the focus entirely to carryforwards. Understanding when exceptions apply is critical, and we’ll explain that clearly and in plain language.

Next, we’ll take a closer look at NOL carryforwards, which now allow losses to be carried forward indefinitely under current law. While that sounds generous, there’s an important limitation many taxpayers overlook: NOLs generally can only offset up to 80% of taxable income in future years. We’ll discuss how that limitation works, why it matters, and how it impacts long-term tax planning. 💡

We’ll also cover practical considerations—such as record-keeping, tracking carryforward amounts, and timing decisions—so you don’t accidentally lose valuable tax benefits. Proper documentation and annual review are essential to staying compliant and maximizing the value of your NOLs.

Finally, we’ll touch on recent insights from trusted tax resources and explain why professional guidance is often necessary when dealing with NOLs. Between changing legislation, special rules for different entities, and strategic planning opportunities, this is an area where informed decisions really pay off.

Net Operating Losses can be a powerful tool when used correctly—but they’re not automatic, and they’re not always simple. Tune in to learn how NOLs really work, how recent law changes affect you, and how to use them strategically to improve cash flow and reduce future tax liabilities.

Buckle up for another informative and practical episode of the Tax and Accounting Ride Along Podcast—designed to help you make smarter tax decisions with confidence. 🎧

#NetOperatingLosses #NOL #NOLTaxBenefits #NOLCarryforward #NOLCarryback #TaxLossStrategies #BusinessTaxPlanning #IRSTaxRules #TaxDeductions #TaxLiabilityReduction #CashFlowTaxPlanning

Welcome back to the Tax and Accounting Ride Along Podcast!

In today’s episode, we’re diving into one of the most underrated secrets to a smooth, stress-free tax season: well-prepared, clean financial statements. Whether you’re a small business owner, freelancer, or advisor helping clients keep their books in order, clean financials can completely transform your tax-time experience.

Most people don’t realize that messy books lead to errors, delays, penalties, and even audits. But when your financial statements are accurate and organized, everything—from tax prep to decision-making—becomes easier, faster, and more reliable. This episode breaks down why clean financials matter and how they directly impact your tax outcomes and business success.

In this episode, you’ll learn:

• What clean, well-prepared financial statements actually are—and why they matter
• How accurate books drastically reduce errors, delays, and tax-season surprises
• Why clean financials improve communication with your tax preparer and uncover more deductions
• How organized records help you anticipate tax liabilities before they hit
• The long-term benefits of ongoing financial statement maintenance—even outside of tax season
• How strong financials improve your chances of getting financing and attracting investors
• Practical tips for keeping your books clean year-round, including automation, reconciliation, and proper documentation

Whether you manage your own books or rely on a professional, this episode is packed with actionable insights to help you stay organized, reduce tax-time anxiety, and make smarter financial decisions throughout the year.

Because when your financials are clean, tax season stops being a headache—and becomes just another easy checkpoint in your business journey.

Hit play and let’s ride along!

Don’t forget to subscribe so you never miss an episode—and join us each week for more practical, no-fluff tax and accounting insights for small businesses and everyday taxpayers.

#TaxSeason #SmallBusinessFinance #BookkeepingTips #CleanFinancials #TaxPreparation #AccountingPodcast #BusinessAccounting #FinancialStatements #TaxPlanning #EntrepreneurFinance #BusinessTips #AccountantLife #TaxAdvice #BusinessOrganization #CashFlowManagement #IRSReady #StressFreeTaxSeason #TaxStrategy #FinanceTips #BusinessOwners #TaxPros

In this episode, we're uncovering the secrets to paying zero taxes on over $100,000 of income, even if you earn W2 wages and generate long-term portfolio income from mutual funds and investments. 💡

If you’ve ever wondered how to minimize your tax liability despite earning a significant income, you’re in the right place. Combining W2 income with long-term capital gains can create a unique tax situation, but with the right strategies, you might be able to legally reduce your taxable income to zero.

🔑 In this episode, we'll cover:

• The difference between W2 income and long-term portfolio income (capital gains).
• How to leverage tax-deferred accounts (like 401(k)s and IRAs) to reduce taxable income.
• The power of tax-loss harvesting to offset capital gains from mutual fund sales.
• A deep dive into capital gains tax rates and how they can work in your favor to potentially pay no taxes on gains over $100,000. We’ll explain how filing status, income thresholds, and deductions come into play to achieve this.

💥 Real-Life Example:

Join us as we break down a practical example involving Mike and Mary, a couple with over $100,000 in total income who successfully paid zero taxes on their earnings for five years. We’ll guide you through how they strategically used their capital gains, W2 income, and tax deductions to legally avoid taxes while living comfortably.

This isn’t a pipe dream—it’s a feasible strategy that can be applied with the right planning and foresight. By the end of this episode, you’ll understand how to use these tactics to reduce your tax burden and possibly pay zero taxes on substantial income, even with over $100,000 coming in.

📅 Planning ahead is key! Learn the steps you can take now to optimize your tax situation and avoid costly tax mistakes later.

Tune in to learn actionable strategies, real-life examples, and expert advice on how to legally reduce your taxes to zero. Don’t miss out—this episode could change the way you approach tax planning for high income! 🎧

P.S. NOTE: Let me be clear - This is in regards to Federal Income Taxes. If you live in a State with State Income Taxes, State Income Taxes may still apply.

Welcome back to another episode of the Tax and Accounting Ride Along Podcast!

In today’s episode, we’re breaking down the battle of the retirement plans: Solo 401K vs SEP-IRA. If you're a small business owner, freelancer, or self-employed, choosing the right retirement plan can save you thousands in taxes and set you up for a secure future. But which one should you pick?

We’ll explain the key differences between the two, including:

• Contribution Limits: How much can you really put away, and which plan offers more flexibility?
• Tax Benefits: Which option provides better immediate tax deductions and long-term growth?
• Eligibility: Who can qualify for each plan, and what are the requirements?
• Loan Options: Can you borrow from your retirement plan? We’ve got the details.
• Administrative Ease: What’s the paperwork and filing process like for each plan?

By the end of this episode, you’ll be able to make an informed decision about which retirement plan is the best fit for your business and long-term goals.

Don’t miss out on this important tax and retirement planning conversation—press play now!

Subscribe so you never miss an episode, and ride along with us each week for more practical, no-fluff tax and accounting insights for small business owners and everyday taxpayers.

Welcome back to Tax and Accounting Ride Along!- your go-to dose of straight-talking tax and accounting insights for small businesses and the everyday taxpayer in the general public! In this episode, we dive into a subject that affects families, heirs, and future generations alike: understanding estate taxes—specifically the difference between estate income tax and the estate tax itself. These two terms often get mixed up, yet they serve very different purposes, and knowing the distinction is essential for smart estate planning.

We start by unpacking estate income tax, the tax applied to income your estate earns after someone passes away. Whether it's rental income from real estate, dividends from stocks, interest from savings, or gains from investments, any estate-generated income of $600 or more triggers a filing requirement using IRS Form 1041. We explore how this tax is calculated, what income must be tracked, and how distributions to beneficiaries—reported on Schedule K-1—can shift the tax burden.

Then, we shift to the estate tax, often known as the “death tax.” Unlike estate income tax, this one-time tax looks at the total fair market value of everything owned at the time of death—real estate, investments, business interests, personal property, and more. For 2024, estates exceeding $13.61 million per individual or $27.22 million for married couples may owe federal estate tax, filed using IRS Form 706. Most estates fall below these thresholds, but for those that don’t, strategic planning is essential to minimize the tax burden and preserve wealth for future generations.

By the end of the episode, you’ll clearly understand the filing requirements, tax thresholds, and strategic considerations that distinguish these two important tax categories. Whether you’re an executor, beneficiary, or someone planning ahead, this discussion empowers you with the knowledge needed to make informed decisions, maintain compliance, and safeguard generational wealth.

Tune in for practical guidance, real-world examples, and expert-backed insights to help you navigate estate taxes with confidence.

#EstatePlanning #EstateTax #EstateIncomeTax #GenerationalWealth #FinancialLiteracy #TaxPlanning #WealthManagement