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As tax season 2024 unfolds, many entrepreneurs find themselves grappling with previous years' unpaid taxes, alongside the looming obligations for the current year. This episode gets into practical solutions for managing tax debt, with real-life advice and expert insights to navigate this challenging aspect of business ownership. • Understanding Your Options with the IRS: Setting up a payment plan with the IRS is the most common recourse for those unable to pay taxes in full. Learn about the prerequisites, process, and potential pitfalls. How does the IRS view income versus payroll tax debts? What are the crucial differences that could affect your business? • The Truth About Offers in Compromise: Offers in Compromise (OIC) might seem like a silver bullet for tax woes, but they're often misunderstood and not as easily attainable as advertised. I I try to demystify OICs, outlining the qualifications, processes, and the reality behind settling tax debts for "pennies on the dollar." Why are these offers rarely the best solution for most taxpayers? • Practical Tips and Real-World Strategies: Beyond understanding IRS mechanisms, this episode provides actionable advice for managing and potentially settling tax debts. From negotiating with state tax authorities to leveraging existing assets and income for a better outcome, learn strategies that could save your business significant amounts of money and stress. Thanks to our partners, NAPA TRACS and Promotive Did you know that NAPA TRACS has onsite training plus six days a week support? It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice. Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.com It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com. Paar Melis and Associates – Accountants Specializing in Automotive Repair Visit us Online: www.paarmelis.com Email Hunt: [email protected] Get a copy of my Book: Download Here Aftermarket Radio Network Click to go to the Podcast on Remarkable Results Radio

Taxes are an unavoidable part of life, and for many individuals and businesses, it can be an overwhelming process and stressful financial burden. We often dread those spring months when tax season is in full swing and we’re rushing to gather the appropriate documents, financial statements, receipts, and more for tax planning and filing. However, by planning for taxes ahead of time throughout the year, you can reduce your tax liability and ensure you are well-prepared for tax season. Plus, you won’t feel so rushed and stressed come tax crunch time. Read on for a few tax planning tips that can help you get ahead on your taxes and make the entire process smoother and less stressful. Tax Planning Tips TIP #1: KNOW WHAT YOUR TAXES ARE BEFORE ASKING IF YOU NEED TO REDUCE THEM. When planning for taxes, it’s important to have a clear understanding of what your taxes are. This will help you effectively reduce your tax liability. In order to do this, you must know your income, expenses, deductions, and credits. Take the time to thoroughly review your financial records and calculate your tax liability accurately. This is a foundational first step to help you start your tax planning efforts with the most accurate information. TIP #2: PLAN FOR TAXES THROUGHOUT THE YEAR. The next tax planning tip is to plan and prepare for taxes throughout the year, not just once a year during the busy tax season. This is a common mistake that many people make. Then, they often find themselves in a rush, making errors, and struggling to get support from accountants who are already booked out with tax work. Tax planning should be an ongoing process that you do throughout the entire year. Review your financial situation and make adjustments regularly. This will help you avoid last-minute stress, feel more prepared, and can even lead to opportunities for tax savings. TIP #3: IMPLEMENT A 3 PHASE TAX PLANNING APPROACH. To help you plan for taxes throughout the year, implement a 3 phase tax planning approach. Here’s a breakdown of what each phase might look like. PHASE 1: WHILE PREPARING THE TAX RETURN FOR THE PREVIOUS YEAR. Begin the first phase of the tax planning process by reviewing the previous year’s tax return. Look at what your financial picture and overall financial health looked like. Ask yourself if there were any significant changes in your income and/or expenses. Check to see if this year’s trends are in line with last year’s. Take note of any projected financial growth or slowdowns, as this will inform your tax planning decisions. PHASE 2: END OF JUNE Around the end of June, take another look at your financials thus far for the year. This is a great time to get a solid estimate of where you’re at and what the rest of the year will look like. If you’ve experienced good growth so far, you may want to consider increasing your estimated tax payments to avoid penalties and interest. This also gives you time to prepare for higher taxes in the spring by saving more for taxes. This is also an ideal phase to assess if there have been any major gains or losses in your income or business investments, as these may require you to adjust your tax planning strategy. PHASE 3: OCTOBER OR NOVEMBER As the year progresses, continue to monitor your financial situation and take a look in October or November to see if any new opportunities for tax planning have emerged. This is the time when you may consider making significant purchases before the end of the year that will benefit your tax situation. By implementing these 3 simple tax planning tips throughout the year, you can set yourself up for a less stressful (and surprising) tax return. You’ll head into tax season feeling confident in your decisions and prepared for any tax liability you must take care of. It’s important to remember that tax laws and regulations can change, so be sure to stay informed and consult with an accountant or tax professional to stay up-to-date.

This week Hunt discusses a common misconception surrounding S-Corp draws and how they are taxed. • What is a draw and how do you know how much you can take out of your business? • Does the amount that I pay myself have any relationship or impact on how much in draws I can take? • Do I pay tax on my draws? • What are issues that I could end up paying taxes on my distributions from my business? Thanks to our partners, NAPA TRACS and Promotive Visit NAPATRACS.com and GoPromotive.com Paar Melis and Associates – Accountants Specializing in Automotive Repair Visit us Online : www.paarmelis.com Email Hunt: [email protected] Get a copy of my Book : Download Here Click to go to the Podcast on Remarkable Results Radio

Thanks to our sponsor partner NAPA TRACS NAPATRACS.com This week Hunt talks about the debt ceiling as well as the national debt and how it is already affecting our lives. • How does the government generate and borrow money? • Who is financing the national debt of our country? • How are these issues affecting you right now, and what future input could that have on your taxes and customers? • What does the future hold if we want to try and reduce our deficit? Hunt Demarest, CPA Paar Melis and Associates – Accountants Specializing in Automotive Repair Visit us Online : www.paarmelis.com Email Hunt: [email protected] Get a copy of my Book : Download Here Click to go to the Podcast on Remarkable Results Radio

For automotive shop owners, tax planning is an ongoing process. You should meet with your accountant at least once a quarter to review your financials, expenses, major purchases, cash reserve, payroll, etc., and make needed course corrections. Below is a general list of tasks that should be done by the end of the year to prepare for tax season, which is right around the corner. Schedule a meeting with your accountant and ask if any information, reports, or documents are specific to your business. Update your inventory and run a report for December 31. Review your and your employee’s retirement accounts; fund them if needed before the end of the year. Purchase equipment, vehicles, etc., to reduce taxes ONLY after discussing with your accountant and coach. Check your accounts/receivables and print a report with a closing date of December 31. Prepare a list of any uncollectable debt for your accountant. Prepare your accounts/payables. Determine which bills will be paid in the current year. Ensure that all loan interest income and expense is properly itemized on your P/L. Ensure that all major equipment purchases are properly itemized on your balance sheet. Prepare any investment dividends documents. You may need to wait until January to obtain these documents. Make sure you have all receipts and records for any capital improvements or leasehold improvements made this year. Contact your attorney for any required corporate meetings, filings, etc. Discuss with your accountant how to payout any end-of-year employee or corporate officer bonuses. Ensure that all payroll information and worker’s compensation information are correct. Remember, preparing now may save you from paying too much in taxes and will relieve stress from your life.

Do you ever worry that if the credit card you’re using to make business purchases isn’t in your business name that you won’t be allowed to take the deductions? The good news is, that’s not the case—even if you have a separate entity! This doesn’t mean you should mix personal and business expenses. When you take a personal credit card and use it entirely for business expenses, you are essentially contributing this debt to your business. You can use the card the same as if it was in the company’s name and deduct every business expense you purchase on it. This can be a great strategy, just like with auto loans, when the company is new because it’s harder for new companies to get lines of credit without an established credit history. So if you’ve got a personal credit card available for business expenses, feel free to use that card and benefit from all of the rewards! To learn more please call 1954-324-0803 or book an appointment at https://calendly.com/markjohnsontaxplanner/45min View full article

He had been working with his accountant for 6 years. That’s over $134k in over-payments. The reality is most CPAs only do tax preparation not tax planning, there is a HUGE difference! I am offering free tax planning assessments to all group members. Where we will look at: Deductions review & Strategy planning Legal Entity Optimization Retirement Option & Plan to Hit Extra 1M by Retirement Insurance Review & Assets Protection TCJA (Trump Tax) Review Message me direct or book your slot on my website. View full article

According to The NY Times, you should have a well-padded cushion of savings by age 50 if you want to retire comfortably. This is how it should look: By age 50, have five times your annual salary saved. ( ie. $100K income = $500K savings) By age 55, have six times your annual salary saved. ( ie. $100K income = $600K savings) By age 60, have seven times your annual salary saved. ( ie. $100K income = $700K savings) The Times also reports that less than 13% of Americans have a pension or a solid retirement plan. How does your situation looks? Are you on track to retire comfortably? If not, no need to panic. We can guide you in getting there. If a shop owner who is currently 50 years old starts putting away $2,700 every month until he retires at 67. He would have amassed $1,245,344 by the time he retires. Now you might be asking where will I get the money from to save? Well, most of the shop owners that I encounter are overpaying an average of $22,679 in taxes yearly. This amount alone could easily be used to fund your retirement plan. When we met Henry he was 62 and his shop was netting a little over $283K per year. We were able to find tax savings which allowed him to save $84K per year and in 8 years he had over $1.1M in retirement savings. To learn how to use your tax savings to build your retirement portfolio message me directly or book a free consultation via my website.

Typically, at the end of the year, tool reps and other sales people will try to sell shops tools and equipment with the pitch to make sure you get all your write-off deductions in by the end of the year. While this tax strategy can reduce your taxable income, thus reducing the amount of taxes you owe, you need to discuss any purchase with the purpose of using it as a write-off with a qualified accountant first. Reducing taxable income through ligament write-off deductions can in many cases also reduce your cash reserve. Cash is king and sometimes paying taxes and maintaining cash reserve is the smarter decision. Everyone wants to reduce their business and personal income tax. But, please discuss with your accountant any purchase that may impact cash reserve. Obviously, if you need a particular tool or equipment to operate your business, that’s different.

Hi All, I'd like to thank everyone who has helped answer so many questions recently. I'm in the process of finalizing the opening of our Auto Repair shop and I got a call from a CPA offering their services. Basically their offering is a subsription type service that allows me to contact them with any questions etc and they help file taxes each year etc etc. However being new to this I would appreciate any input on how you all manage the finances of your business. I was hoping quickbooks would be sufficient for me but apparently they recomend proffesional help. Our shop consists of 2 full time mechanics and myself to manage and run the whole thing as well as the initial service advisor.