Main Street Business

#587 Trump Signs The Big Beautiful Bill: What This Means for Tax Planning

• Mark J Kohler and Mat Sorensen

Share episode

President Trump just signed the Big Beautiful Bill into law — and it’s packed with tax breaks for small business owners, real estate investors, and everyday entrepreneurs. In this episode, tax attorney Mark J. Kohler and attorney Mat Sorensen break down the most useful strategies you can implement right now to save big.

Here’s what you’ll learn:

  • How to leverage 100% bonus depreciation for real estate, vehicles, and business equipment
  • Why the QBI (199A) deduction is now a permanent win for small business owners
  • How to tap into Opportunity Zones for tax-free investing
  • The truth about the new $40K SALT cap — and the workaround that still works in 36 states

Whether you're an entrepreneur, investor, or just want to pay less in taxes — this episode is your playbook.

Speaker 1:

Welcome to the Main Street Business Podcast with your distinguished hosts, mark J Kohler and Matt Sorenson. Both are bestselling authors and have over 25 years of industry experience, with 10,000 client consultations, making them the leading tax and legal experts in the nation. Together, they'll unpack the most complex tax, legal and financial strategies crucial for saving more, stressing less and building generational wealth. Crucial for saving more, stressing less and building generational wealth. Today they're your personal advisors, ready to break it down for you and make the tax and legal game easier than ever. Here is Mark and Matt.

Speaker 2:

We're leaving millions of dollars on the table with just simple strategies.

Speaker 3:

on a year-to-year basis, the highest rate is going to stay fixed at 37%. If this bill didn't pass, it was going to 39.6%. Even if you were like in the current 12% bracket, you were going up to 15%. This wasn't just the high bracket going down. This is affecting everyone across the different tax brackets. Whether you're middle income, low income, higher income, you're going to see a tax benefit from that.

Speaker 2:

This is the crème de la crème of the whole bill for you, business owners and investors. Welcome everybody to the Main Street Business Podcast with your hosts Mark Kohler and Matt Sorenson. This is a big beautiful day and it's the big beautiful bill. Finally, the fat lady sings. It's all over. The sausage is made. You can enjoy that hot dog now. You don't have to see it being made in Congress anymore. It was disgusting, but it's finally done. The bill is final.

Speaker 3:

Matt, this has got to be a big day for you. Oh, I'm so excited. You know, like the House passed it by one vote and then the Senate was like we're going to make it even closer and go 50-50. So the vice president has to vote on this thing to make it pass. And then, of course, trump signed it right before the 4th of July, before you actually ate that hot dog, because you were so enthralled with all of this sausage making. But there is some good news in this bill. There's some winners and losers in this, but mostly good news, and we want to break that down for you, for business owners and then also for individuals. Obviously, business owners are individuals too, but we want to hit those topics and lots to cover, lots to cover, lots to cover.

Speaker 2:

We're going to jump right into it. I also want to tell you I think it was a little lackluster for me because it just was extending a lot of things we got used to, but that's okay. When people say it just benefits the rich, I'm still trying to find some angles for my wealthy client. I'm like to find some angles for my wealthy client. I'm like what?

Speaker 3:

You'll hear a lot of these individual deductions when we get to them have high income phase outs, so I'm a little confused on that too. But obviously the higher income people pay more in taxes because they're in a higher tax bracket and that's just how our tax system works. So to say that they save the most is kind of accurate. That's how math works. They pay the most, so they will save the most when you reduce taxes. But everybody's rates got reduced. We'll go over that today. So let's jump in. For business owners, mark, I mean, I don't know, you had a favorite one in there. You had to have had a favorite.

Speaker 2:

Oh, I think yeah, thank you, you're giving me first shot. Man, I'll take it. I'm going to do a layup. If we're going to play horse, I'm going to go for a layup. I'm not going to go shoot a three-pointer and pray for a good shot. Okay, so here it is. Everybody, for the business owner, bar none, this is the best tax strategy and benefit from the bill from real estate investor to business owner bonus depreciation Absolutely the best. It's up to 100%, it's permanent and holy crap. And for those that are techies out there in the tax world, it's going to be a balancing act between bonus and 179 and tactical planning on spreading out deductions. But if you want a big write-off up front, bam, you can take it. Let's break it down. What do you love about the bonus depreciation?

Speaker 3:

Well, I mean, if you're buying a new qualifying vehicle or equipment in your business, I think right now the max bonus depreciation you can do is 40% and next year it's going to be 20%. So, like you know, that's that piece of equipment I buy that cost me 100 grand, you know, and let's say has a five year life. I can only write off 20,000 of that a year, but now I can take that whole $100,000 reduction in the year. I acquire that asset. That allows me, as a business owner, to buy more assets, buy more equipment, increase my production. Obviously I see more spending in the economy. So I think it'll be good for the economy. But it's great for business owners to have the ability to take that. It's not required, it's an option. You want to expense it more and take the bonus? You can take the 100% depreciation on it in year one and I like how you said.

Speaker 3:

That too, it's permanent, and remember last time they did it it was like 100%, 80%, 60%, 40%, 20%.

Speaker 2:

They stuck it at 100% right, yeah, and I want to give you guys listeners. You're going to be blessed. Get a bonus, no pun intended for listening to this podcast. We know there's a lot of voices out there talking about the big, beautiful bill, but you chose to get your summary here. I'm going to give you two kick-ass strategies that go with this bonus depreciation that I would swear 90% of accountants are not talking about.

Speaker 2:

But first I want to get a little technical. See, the 179 allows you to expense that Five-year asset immediately if you wanted to. There's limits on 179. I go over a million, whatever 179, but it cannot drive you into a loss. So if I go out and buy a new piece of equipment or a truck, I can expense it without bonus depreciation 100% of it. But if it puts me into a loss, I can't. And I have to look at all the assets I bought that year. I have to choose the 179, all of them.

Speaker 2:

So the 179 is out there and some people still may utilize that, but the bonus can now throw you into a loss. So your business may say let's have $100,000 in profit, but you expense a new piece of equipment for $150,000 with bonus. Now you're in a $50,000 loss that you can use against other income. With a $179,000, it drops to zero, but it cannot push you into a loss. So there's some techniques there, and I want to say this for any of you out there that are regularly acquiring equipment you're making money, you're not making money, you're expanding. This is not a no-brainer go bonus. You're going to want to strategize with your accountant, choose which assets to bonus or 179, and be very tactical about it.

Speaker 3:

Great tip Dang. All right, anything else you want to say, alex, I'm ready to hit the line. Matt, you want to hear the strategy.

Speaker 2:

Okay, you got another one. Guys, I'll tell you right now. I don't have much more to say about the bill than this one. This is the creme de la creme of the whole bill for you, business owners and investors what I love about bonus. I'll give three of them real quick. The short-term rental loophole still available. Any of you that want to go down and buy a short-term rental before the end of the year and put in 100 hours of renovation and decorating. You can expense, with cost segregation and bonus, probably 40% or more of that acquisition, all on your tax return, and you don't even have to be a real estate professional. Bonus opens up that door wide open again this year.

Speaker 2:

Number two self-rental. Matt Sorensen and I are self-rental aficionados. We buy buildings to rent to our business after our startup phase and started making some money. We wanted to buildings to rent to our business after our startup phase and started making some money. We wanted to quit paying rent to other people If you're a business owner and paying rent to someone else. This is your chance to go acquire a building before your end a commercial condo, a storage unit, a warehouse, whatever the hell you use and you could bonus depreciate again a huge chunk of it and wipe out your income on your business. Return this year and get even a refund. Possibly Big deal Bonus opens that up again.

Speaker 2:

Third, matt, here it is. See, when you go to expense a vehicle, matt said that at the beginning I'm going to go buy a truck for, say, 50 grand. Well, you can only bonus depreciate your business use. So if you say, well, I'm going to use 70% of the truck for business, okay, so $15,000 of the $50,000 truck is personal use. So I don't get to bonus depreciate that. I could write off $35,000 in one pop. Okay, that's cool Bonus depreciation.

Speaker 2:

But, matt, here's the strategy. If you're out there looking at buying a truck or vehicle and you know you're going to only use it 70% for personal I mean 70% for business wait until December, buy that vehicle in December, use it 100% for business. For the last week of the year you could write off 100% of that vehicle because the percentage of business use is in the year of acquisition For bonus depreciation. So I could 100 bonus depreciate that truck. Now you say, well, mark, I convert it back to personal use to 70 on january. First, I mean it's going to be 70 Business use. I got personal use in there, yeah, but the rule is, if you don't go below 50 business use you could. You don't have to recapture that 100% bonus depreciation so you could 100% bonus depreciate a vehicle before you're in show 100% business use, start to use it for personal use. Just don't go below 50. I got 100% write-off and bonus opens that door as well.

Speaker 3:

I'm glad we led with this one, good Lord. I mean, I was like taking it to the next level. Okay, I like that. You know, for any of you guys that like to be strategic about it, you know you want to game it as much as possible. Awesome tips there. Keep in mind a lot of those uh, that bonus depreciation we were hitting for real estate investors. A lot of times those losses don't come over to your ordinary income, your W-2 or your business income, except for those exceptions Mark was talking about, like the short-term rental, the self-rental Vehicle's a little different there. It doesn't have that same issue. But awesome tips there. I want to hit-. Okay, what's your favorite? What moves the needle? I like.

Speaker 3:

I know you say it's boring. You said $. You said 199A is boring, but I'm telling you QBI is a big deal. Okay, qualified business income this is a big deal. This was set to expire and this was a huge perk that small business got back in 2017.

Speaker 3:

See corporate America in the last tax bill. They were smart. Big companies that are C corporations pay corporate tax. That used to be 35%. When the last tax reform happened, they went and lobbied Congress and said no, no, no, we want that to be permanent, lower at 21%, and they got that forever. Permanent.

Speaker 3:

Small businesses there are like, well, what do we get? And they're like, well, you don't pay tax at your level, you pay at your individual level. It's pass-through for you, llcs and S-corporations. So they said, we'll give you a 20% deduction on your qualifying business income, qbi. So it reduces your business income 20% If you make 200 grand. You're only taxed if you made 160. It's huge, it's a big perk.

Speaker 3:

But they said, eh, it's not going to be permanent though. We'll give it to you for nine years, right, 10 years. Well, that was the last year of it. It was set to go away next year. So, even though we've gotten used to it and we've kind of gotten, you know, a little comfortable with it, it was going away next year. Now that got extended and there was a lot of talk about that, about that just being renewed for a pre a portion of time. The house bill even bumped up to 23%, but the final bill that Trump signed in the law that the Senate passed is 20% for QBI. This is a deduction you get for your qualifying business income and it was made permanent too. We're not dealing with another cliff where this is going to die again. That was made permanent too, and I like that one because that helps a lot of small business owners and I know the bonus depreciation can too. But that's going to help and already has been helping save a ton of taxes for small business.

Speaker 2:

Yeah, and Matt, you're absolutely right. I just think you know Matt's right. I got used to it. I was like, hey, the $199.8. I mean, they took out that stop sign. I don't have to stop there anymore. Well, I'm loving it. Now you're saying, well, they were going to put the stop sign back. I'm like, well, but they didn't. So anyway, I love that.

Speaker 2:

This is a great write-off and there's some strategy here as well. When you meet with your accountant for those that are S Corp owners, the salary level you take and the balance between your 401k, your solo 401k, maybe even the backdoor, mega backdoor, roth S-corp owners salary it will affect your 199A and there's an art there of finding that sweet spot. So make sure you're talking with your accountant about 199. You don't want to just say, oh, I'm taking QBI, well, you take more salary, you get less QBI, you take less salary, you get more QBI, and so there's a give and take and then you're oh, I want to put money in my solo 401k. Oh, I want to put money in my spouse's solo 401k. So strategy is absolutely critical and I just want to say this to everyone out there If you're listening to this, if you're like I have got to be more proactive with my tax planning.

Speaker 2:

Please make an appointment with one of our tax lawyers. We do a comprehensive tax consultation. We'll build a trifecta. We'll give you our top 10 things you need to be working on. If you don't have a good accountant, we've got a network of accountants that speak Mark Kohler and Matt Sorensen. Or you can take it back to your accountant and say, hey, these tax lawyers said we need to talk about this. You might get lucky and they go okay, we'll take advice from someone else. You might have to upgrade your accountant, but come get a second opinion. You can down below in our show notes click on kkoslawyerscom. Meet with one of our tax lawyers and they will talk about every one of these strategies in detail with you and see what you need to do differently. All right, $199,000,. Matt, I like it. Okay, all right, I got to vote for it.

Speaker 2:

All right, okay, you know it only got 50-50 in the Senate, so I'll take it. I can't believe that. You know, it's this Trump derangement syndrome again. Every small business owner in America wants it. Why does it never? Whatever? Okay, now, what do you think about opportunity zones? Do you like those? I could get into the detail.

Speaker 3:

I'm for it, I support it and that's my message. How could you not right? Here's why because and I know you're a little more expert on the Oz program and opportunity zone is like, a lot of people are familiar with the 1031, right Opportunity zones a lot of people aren't familiar with it Again, a new thing that got passed back in 2017, the last tax reform. It's all expiring now and it's already kind of phased down, frankly, but it's coming back maybe. But, like people are familiar with the 1031, right, I sell real estate like investment real estate and I repurchase investment real estate.

Speaker 3:

I don't pay tax. I can roll that gain and buy a new property of greater or equal value and that's a great tax deferral strategy. Opportunity zone is like that on steroids. Opportunity zone sell stock, sell your business, sell real estate. We don't care what you sell. Roll it in to qualifying opportunity zone project, which could be a real estate project, could be a business in an opportunity zone. Defer the tax. Also, you can reduce tax. It's a pretty. It's a very, very generous program, I should say from a tax standpoint, if you're looking for tax savings.

Speaker 2:

Yeah, and some of you may be going okay, I haven't heard of this. Let me give you another way of saying this. And Matt, great summary, and I'll keep this brief. The principle behind the matter is the feds are now giving the state governors the opportunity to choose opportunity zones in their state and so they get to choose X number of zones. They call them qualifying tracks or something like that. Yeah, qualifying tracks, these zones that need redevelopment, and the best way to get shiz done in developing property in America is to give incentives to investors to go there. Whether it's Katrina and a disaster zone, they'll give investors, sometimes tax benefits to go rebuild. So these governors get to choose these zones.

Speaker 2:

Now this has been around for nine years, but it just hasn't got as much traction for some odd reason. But it's back with a vengeance and even better. So the point is, if you have a capital gain like Matt said, sell stock, crypto, business, real estate and you don't want to do a 1031, or you're late, you missed the 1031, or you don't even qualify for a 1031, like stock or crypto wouldn't? You can take whatever portion of that gain you want and deploy it into an opportunity zone, let's say, real estate project At our law firm, even Devin Munns, our attorney. You can build your own LLC that qualifies for the opportunity zone.

Speaker 2:

You want to get on your state website and go hey, this is right down the street. Holy crap, I can buy this building. Put in X percentage of new improvements, make it qualifying, put your own capital gain into it, defer the tax for a period of time and if you hold that property 10 years, any appreciation you never pay tax. May I quote Smalls Never From, of course, sandlot 4th of July movie best ever. So I just think the Opportunity Zone needs to be on people's radar. Big bill back better, the big beautiful bill.

Speaker 3:

Okay, cool, we got Opportunity Zones in All. Right, let's shift over to individuals. You ready? Yes, I think those are the big three.

Speaker 2:

There's some others out there carry forward interest. There's some deal with solar tax credits that got shot down. We'll have some other podcasts on that stuff, but I think those are the big three that business owners need to be aware of. But every business owner is an individual. So Matt hit it. What do you like about the individual?

Speaker 3:

Your income is hitting your individual return also. So we've got to figure out how we're going to save there. Well, I think. Let me hit the main one, which is rates are staying at the reduced rate, and I know that might sound again like well, rates are going up next year 2% to 3% For everyone but the 10% bracket, the very lowest bracket, which doesn't pay tax anyways. But for everyone else you're going up 2% to 3%. So the highest rate is going to stay fixed at 37%.

Speaker 3:

If this bill didn't pass, it was going to 39.6. And then, even if you were like in the current 12% bracket, you were going up to 15%. All right, so this wasn't just the high bracket going down. This is affecting everyone across the different tax brackets. So everyone's going to see a 2% to 3% rate reduction, except that bottom lower 10% bracket. So that's huge and I think that is something we're all going to see tax savings on, and whether you're middle income, lower income, higher income, you're going to see a tax benefit from that. There's more, but that's just the first one. On the individual rate Lower lease rates and made permanent Again. It's not this 10-year cliff where it's going to die again. That was made permanent as well.

Speaker 2:

Yeah, and I'll just piggyback it and say and capital gain rates did not change. So some people thought that might be affected. And oh, I sell crypto. It was blah, blah, blah. None of that's in the final bill. Capital gain rates don't change and all of our personal rates are now permanent and did not go up.

Speaker 2:

Here's another one that's interesting. The estate tax exemption was made permanent at $15 million for an individual and $30 million for a couple, and it now will be adjusted for inflation from that point moving forward. Now what that means some of you are like $15 million. Well, some of you on the podcast are like maybe someday I'll get there. Some of you are like 15 million. Well, some of you on the podcast are like, maybe someday I'll get there. Others of you are like that adds up quick. You've got a small business that's add value. You've got real estate, you've got your 401k, you've got your home, you've got some inheritance, life insurance proceeds, life insurance it all adds up.

Speaker 2:

The IRS takes a picture people when you die. And every year, if you look at statistics, more and more millionaires are created every year in this country. It's crazy. So here's the point If you feel like in your net worth taking that big picture into account, is worth $15 million or more and you're married, you don't automatically get the $30.

Speaker 2:

You have to have a special trust. It's called an AB bypassed estate plan trust. They're not that expensive but we do them every day in our firm for clients around the country and so you've got to get that AB trust done in order to grab the 15 and 15. So if you're married, you only get the 30 if you have a trust designed to grab it and use it. It just defaults, if you don't, to the 15 per individual. So be careful. If your parents, a friend, family member or yourself are in that area of around 15 mil plus, get a consult with one of our tax lawyers and for under five grand you're going to have it all taken care of. Don't get some lawyer selling you some $10,000 blah blah, blah plan. You don't need to spend that much on an AB trust.

Speaker 3:

Yeah, and, by the way, if you hit a state tax, the federal estate tax is like 45%, it's almost half. It's like okay, I got taxed when I made it with income tax, I got taxes, I own it with property tax and I got taxed when I died and that one's the biggest, that's the highest rate. So you get basically to keep half over that amount. So some good planning there is very, very valuable, literally can save billions. All right, let me hit the one that was like the political football in this whole process, which was the state and local tax. Sometimes some people call it SALT. This is that deduction that the federal government gives you to say, hey, you made 200 grand and you paid the state of California $30,000 in state income tax. We're not going to tax you like you made 200 grand, we're only going to tax you like you made 170, because that's all you got to keep. The state of California took 30 grand from you. We'd be crazy to tax money. You had to pay tax to a state on right and that makes sense as a tax policy. Why would the federal government tax you on money that you already had to send to another state for their state tax? Okay, so in our tax law we have a deduction for state and local tax.

Speaker 3:

Now in the last tax reform they said we're going to cap that at $10,000. They said you can't take a deduction larger than $10,000. So for high-income people from states that have a large, high state income tax and this can even be property tax, local tax this was not good because they were not getting this deduction. They were only limited to the ten thousand dollars. Well, basically that was set to expire again and it's actually the thing was going to go away so you'd have no cap, which would actually been good for on this issue. But the compromise in the bill was a new cap at 40 grand. This is what passed. Trump signed into law a new cap at 40 grand,000. There's some high-income phase-outs on that we can touch on, but now you get a new cap of $40,000 on state and local tax.

Speaker 2:

Yeah, no, it caps out. If you're making between $500,000 and $600,000 AGI, then you can't use it at all, but it is so if you're making less than $500,000, you at least get the $10,000.

Speaker 2:

Though, with all that said, I've got something better, and that is the pass-through entity tax. Ooh, I love this one. Yes, now, this almost got. This was in one of the Senate's version, or the House's version. In the joint committee they took it out, thank heavens, that they were going to federally eliminate the state's ability to do this. So here's what it is 36 states have said oh, you hate the SALT strategy and your state tax is limited to this 10 or 40 grand.

Speaker 2:

Pay for it through your S-Corporation and you can take a valid deduction on your S-Corp tax return for federal and state purposes. And so now I can save that tax by going through my S-Corp. Now, this is only for you out there that are S-Corp owners or 1065s. Actually, partnerships can pull this off too, but there's a unique way to pull this off and it allows you to get bypassed that whole SALT issue Because, remember, salt is state and local tax. You're going to probably hit property tax of $10,000 to $40,000 anyway. So this is the state income tax that can be paid for by your entity. Now, that's just a short summary. Again, strategy planning session. When you meet with one of our tax lawyers, they'll identify if you're in one of these states and if this could work for you, based on your type of business. So not all is lost.

Speaker 3:

I love that strategy too. Yeah, and that was kind of a loophole for business owners to get around the SALT cap. If you're a W-2 owner, there's no way around it, but if you're this pass-through business owner, the escort partnership, this is the strategy where you can. You know you're like well, I'm going to phase out on this stuff, I'm not going to benefit from this increase in the 40K. Frankly, you don't even worry about the cap anymore. You could be having 100K, 200k here, no cap, and you can use this little. They call it a workaround, not a loophole. The AICPA came out and tried to defend this and they're like this is the workaround.

Speaker 3:

We want to preserve the workaround Everyone's like loophole, but good tip. Love that one.

Speaker 2:

Yeah, Now I'm just going to bundle these up due to time as well, because it affects some people but not others. I call them the big three or little three Social Security, tips and overtime. Those three all phase out Any benefit. Okay, in summary, we all heard it in the news Overtime is not going to get taxed, Tips are not going to get taxed and Social Security we're going to stop taxing a portion of it. All of it phases out at $150,000. Single On Social Security, it's $75,000. But $300,000 joint on tips and overtime. The point is, if you or your spouse are getting tips, you're still going to pay FICA, Social Security, Medicare. If you're getting overtime, you're still going to get withholdings on that, but you're not going to pay income tax on it until you hit these thresholds. Social Security is kind of a weird one. They give you a credit that you could go against your social security.

Speaker 3:

The one on the seniors, you know, because they couldn't get anything on social security. Right, that was Trump's campaign promise and a lot of Republicans are out campaigning no tax on social security. Well, they couldn't do that, so they got the $6,000 deduction per individual that's age 65 or older. So if you're a married couple and you're both 65 or older, you can, you'll get $12,000. And, by the way, if you're 65 or older, you already get an additional deduction on your tax return on top of the standard deduction. So you're basically getting three standard deductions already on your dang tax return. So it's not that bad, but there's something there. Now, those do also die. Those are not permanent ones. So that's the downside on the tips overtime and the senior deduction is those are going to be gone in, I think, four to five years, so those are not made permanent.

Speaker 2:

Yeah, and here's the thing that is, I think, very unique. So let's say again here's an angle for you S-corp owners. Now, if you're a sole proprietor, your tip income is part of your gross income on a Schedule C and, as you know, at our company we're going to recommend you convert to an S-corporation as soon as possible if you're paying too much self-employment tax. So sole proprietors, uber drivers, if you get a tip you're still paying tax on it. It doesn't matter. You're an independent sole proprietor.

Speaker 2:

But if you're an S-corporation, matt, this is a unique one. So I'm an S-corp owner and I make $100,000. And so I take $40,000 in payroll and I have $60,000 in K-1. All right, well, of that $40,000 in my industry, let's say I'm a salon owner or a barber and I get a tip on a regular basis. So of my $100,000, let's say, $20,000 of it is tip income because that's in my profession. I'm an S-corp owner, not a sole proprietor. And can I put that tip income on my W-2 and exclude it from tax? Yes, I can, but it's still subject to FICA. So it's going to be in box three and box five on the W-2, but not in box one. So you're not going to pay income tax on it, but you're going to still pay FICA on it.

Speaker 3:

Now here's the I'm okay with that. I'm okay with that because the income rate's higher than the FICA. Now, here's the thing.

Speaker 2:

Okay, how many of you getting tips claim it anyway. If anybody's giving you cash, you're not going to claim it anyway? Well, I'm not going to get taxed on it. You're going to claim it, so you can pay.

Speaker 2:

FICA, you're not going to do that. Well, you're supposed to. I know I know, but I will say this For those of you that get tips via third-party pay now. So you're getting your tips through Venmo and through PayPal or Apple Pay. Those are going to come through on a 1099. So now my tips do matter because I could take them off my W-2 and make a strategy of this. So here's my takeaway If you're an Uber driver and you're making more than $40,000 or $50,000 a year and a third of it is tips, maybe you should make an S-election even sooner.

Speaker 2:

So take that little LLC as an Uber driver, make the S-election, pick up payroll and put your tips. You can take your tips off box one on the W-2. Now, I know that sounded complicated, but again, people, this is why you meet with a tax strategist. We want to save you far more than you ever pay us and we're cheap compared to a big city law firm that wants to charge you tens of thousands of dollars. So get a strategy session. I think there's an angle there for S-corp owners. Matt, that's all I wanted to say.

Speaker 3:

Yeah, All right, let's hit some other ones here. I want to just I'm just going to rattle some off fast because I know we're kind of wrapping it up here. But um, for those of you have kids, the child tax credit that was right now it's 2000. That was set to go to a thousand next year but it was made permanent at 2200 bucks per child. This is a tax credit which is great. There is again a high income phase out on that. But we do get the child tax credit made permanent 2200 bucks per kid. If you got a kid or you're thinking about having one, that's a pretty good deal. Anything else you want to throw out to let people know about. On the individual side, I know there's a lot of little points here. We will never be able to hit them all.

Speaker 2:

Yeah, no, I'm good with that. I think if everyone I want to say good job For listening to a podcast about tax legislation. It's the number one cost in your life. It's the number one thing people don't want to talk about. It's either boring or complicated. But when you take a little initiative to do your personal planning in this area, it can be a lifetime game changer. Because if you can say 10 grand a year, 20 grand a year in tax planning and put that money away, you just look at the future value of that. It is insane. You're leaving millions of dollars on the table with just simple strategies on a year-to-year basis. So I want to say thank you for being here. Share this podcast with friends of yours that may be on the bubble of listening to tax strategies. Say hey, this market, matt, don't make it that bad, listen to it, it'll change your life.

Speaker 3:

So I want to say thank you for being here, yeah, and if you do have questions, our team at KKOS Lawyers we're here for you and please make sure you subscribe to the podcast, because we're going to be diving deep in a lot of these other sections. You might have heard some strategies here. You're like holy cow, I don't code that you might not even be thinking about, and so we want to open up your eyes to these strategies. Everybody's situation is different. This is not a one size fits all where you can just like Google around on this or watch one YouTube video and be like I figured it out, that's what you do. No, it's a tailored approach to your specific situation and we can help you get, take care of it and make it easy. So thanks again for listening. Please make sure you share the show with your friends and family. Like it? I don't know. Give us a comment or review. What do you do nowadays? What is it called A review?

Speaker 2:

Five star, two thumbs up, high five, you know we'll take whatever, Just nothing negative If it's negative.

People on this episode

Head Shot

Mark J. Kohler

Host