139. Tax WINS that could be yours too

In this episode, Kimberly Tara, CPA CTC, shares real-life examples of 6 tax wins that have significantly reduced client's tax liabilities and achieved financial clarity and confidence. She shares that you, too, can use these strategies to WIN BIG! The year is almost over and now is the time to take action.

Connect with Kimberly on Instagram: @kimberlytaracpa

Transcript

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Welcome to Keep More Money, the podcast for profitable women business owners who are tired of overpaying in taxes and tired of chasing down their CPA, deferring to someone else for every financial decision and getting hit with surprise tax bills every April. If you've ever felt like you'll never truly get on top of your business finances. This show is for you. I'm Kimberly Tara, CPA certified tax coach, multi-business owner and mom of four littles. With over a decade of experience and more than 15 million saved for my clients, my mission is to educate and empower women just like you, to keep more of their money, reduce financial stress, and create lasting wealth. Taxes suck, but they don't have to hold you back. I'll show you how to make tax strategy simple, fun and easy to understand. You've worked hard for your success and now it's time to keep more of it. Let's dive in. Welcome back to the Keep More Money Podcast. It's hard to believe, but we're almost to the end of October and heading into the final stretch of the 2025 calendar year. While so many business owners are scrambling, panicking about deadlines, getting their books in order or bracing for yet another large tax bill, our clients are celebrating. They're celebrating because they've already won, and not just with tax savings, but with clarity, calm, and confidence around their finances. I know tax savings can feel abstract until you hear an example of what it looks like in real life. So today. I wanna share real stories, the strategies, the shifts, and the decisions that have helped our clients save thousands of dollars. And as you listen, I want you to think, could that be me next year? Could that be me this year? Because the truth is yes, it absolutely could be. And listen, the reason I wanna share their stories today isn't to brag about the numbers. It's because I want you to see what's possible for you. Because every one of these stories started with a woman. Who was tired of feeling confused, overwhelmed, or frustrated with her business taxes and current CPA, and she decided it was time to make a change. She didn't know all the strategies, she didn't have everything perfectly organized. She just decided that she was ready to keep more of her money, and that decision changed everything. Today's episode is about possibility because I want you to see yourself in every one of these stories that I'm about to share. They aren't outliers. They're real life examples of what's possible for you when creative and proactive strategy meets expert support. So as I go through these wins, again, I want you to listen for yourself in these stories. The opportunities. Maybe your business looks different, maybe your numbers are smaller or bigger, but the principles are the same. These are the real life tax wins that could be yours too. And here's the thing, none of these women started out any different from you. They're running businesses, raising families, managing life, and doing their best to stay on top of everything. Most days, most of them had CPAs that they thought were quote unquote fine before meeting us. Those CPAs filed their taxes every year, mostly on time. They usually answer questions even if it took weeks or months. For the reply, they checked the boxes necessary to keep. These women to keep you out of trouble with the IRS. But what they didn't have was strategy. And that's the difference between feeling like you're constantly behind and finally feeling like you're winning. None of these examples I'm about to share with you are overnight miracles. They are the result of proactive strategy, better support, year round guidance, and women who decided to stop doing things the hard way. Okay. Every win you're about to hear started with a conversation. A woman, just like you saying, I'm tired of being in the dark. I'm tired of saying I don't know what I don't know. I want clarity. I want to learn. I want to be educated, and I'm ready to use my business to pay less taxes instead of it costing me more. And I need someone qualified to do that. Okay, so the first tax win, we're gonna call the entity shift, and that is usually a fancy word for electing to file taxes as an S-Corp. S-Corps are not the only entity out there, but those are the ones that you hear. The most in terms of tax savings and tax strategy. So our client, Sarah, had been running her business for about four years as a sole proprietor in 2024. Things really took off. She was more profitable than ever, and as tax time loomed, she felt so scared of how much she'd owe that she just kept avoiding them. After a VIP day with us, we were able to get her business shifted to an S corp, even with a late at selection. And that single change saved her$22,000 in taxes in the first year alone. Now, of course, there were other strategies that we got into after we made this entity shift for her to elect to file taxes as an S corp. But this was by far the first and biggest. ROI that we needed to get her. Your takeaway from this tax win is that if your business is consistently profitable, and I usually say about 70, 75,000 or more in profit, and you're still filing as a sole proprietor, it's time to look at whether an S Corp entity election makes sense, because you might be missing one of the biggest tax savings opportunities available to small business owners. Entity structure matters and it is not a one size fits all decision, but this one decision could be a total game changer for your bottom line. Just make sure that you follow all the rules and you do all of the supporting strategies of being an S corp after you make the election. Tax win. Number two, capital gains savings. So this tax win is for you if you invest in rental property. Real estate investments. Heather and her husband were selling an investment property and were bracing themselves for a massive capital gains tax bill. Their house's value had grown astronomically since they purchased it, which is a really good thing. They were so excited that their plan had worked and that this property had so much appreciation until someone said the word tax and it hit them like a ton of bricks. Oh my goodness, we're gonna have to pay taxes on this. And their excitement quickly turned to anxiety. By engaging our tax team before tax time. We got their tax balance down from, are you ready for it? 400,000 to 140,000 combined for federal and state. They do live in California, which is a high income state, so this was a big component of their taxes. And helping reduce their taxable gain dramatically. And they avoided unnecessary taxes that allowed them to keep more money for their family and their future. I will say that they, they also have a business, a successful business, another successful business, a W2, right? I don't want you to think that this one rental property was the only thing at play, but that was the main thing, causing them to have a$400,000 tax bill, which was basically going to eat into the majority of their profits. So your takeaway from this tax win is. Big one time events like selling a home, selling an investment property, selling a business, right? Those events deserve tax strategy before you sign the papers or as soon after as you realize you need help, timing and structure make a world of difference, and the more time that you can give your tax strategist, the better that they can do in helping you implement strategies and reducing your tax bill. Tax win. Number three, auto reimbursement instead of depreciation. Our client, Molly, had been working with us for quite a few months before she attended an in-person retreat. On that retreat, she was with other business owners and they kept telling her to go buy a big SUV so that she could take bonus depreciation. The problem. Molly didn't want a big SUV, no matter how much depreciation she could get in her business. She also doesn't drive a ton. Thankfully, Molly came back and booked a call with our team to see if there was another opportunity out there that was more aligned with her life and her business, and so we were able to come up with a legal strategy that is now saving her hundreds of dollars each month through a reimbursement plan instead of depreciating the vehicle. So the takeaway that I want you to have from this win is that sometimes your biggest wins aren't about brand new strategies. They're about optimizing what you're already doing. A few tweaks can turn everyday business expenses into major tax advantages. I also want you to take away from this one that it's a good reminder that just because you see it on social media or your biz bestie is doing something, it doesn't mean that it's the best strategy for you, and it also doesn't even mean that they're doing it properly. Win number four, camp as an education expense. I know what you're thinking, Kimberly. My business can't pay for my kids' camp. And you're right. Hear me out on this win. Our client, Katie had been paying out of pocket for her daughter's camp. Her daughter was actually already an employee When Katie came to work with our firm, as we dove deeper into her business though, we realized that one of the summer camps, quote unquote, she and her daughter were attending in a different state. Actually qualified as a business education expense because of the type of camp it was and what her daughter was learning to bring back to the business. Specifically in her role, she was learning about leadership. Katie was providing mentorship. This was very much a business education and training expense. Katie was no doubt already off to a great start when she started working with us and she was already doing all of the right things to pay her daughter to document it. This one tweak though allowed her to legitimately deduct$8,000 in her business that she was paying for personally before. Her, her daughter earned income. She was learning valuable skills. Katie shifted personal expenses into tax deductible business ones like Talk about a win win, win. So your takeaway from this win is even if you know about a tax strategy you can use in your business, even if you're already implementing it, you may not be use utilizing it to the fullest extent. We see this a ton, and it's why 100% of our clients save more in taxes than what they invest to work with us. We see things you don't. Because we're the experts in this field and we see things. Your current CPA doesn't because we take the time to dig deeper, ask questions, and truly get to know your business and your life win. Number five, confidence over confusion. Our client, Chelsea, like the majority of our new clients, came to us, overwhelmed and anxious about her income taxes, especially because her business was really starting to take off towards the end of the previous year. She wasn't behind, but her current accountant wasn't providing her with strategy and support even after specifically asking. She ultimately realized her current accountant just wasn't in a position to help her with this. It was a totally different ball game from when she and her husband were both just getting W twos. After working with us for just three months, she told us she was no longer scared to keep growing her business and make more money. She was confident in her tax plan and keeping up with her payments throughout the year. Thanks to our support. Nicole is another client with a similar story. She kept putting off her check in call with us canceling, rescheduling over and over again. Her business was highly profitable and growing rapidly, so much so that she had become the breadwinner for her family. She kept pushing taxes down the list even though she had our support behind her. The fear and discomfort was still trying to win here. When she had her call, she told us what a relief it was and that she didn't expect it to be a therapy session, but that's what it felt like in a good way, and she is already looking forward to her next call and she promises she won't reschedule. So your takeaway for this win is that the biggest win isn't always a financial win. It's emotional. Confidence is a return on investment too. Knowing where you stand means sleeping better at night. Literally, that's what happened to our client, Jess, like she messaged us and said, I am sleeping better at night. And it allows you to stop feeling anxious about it. When you stop feeling anxious, it stops floating into every piece of your life. And last but not least, win number six. Excited about tax season. Did you think you were hearing things? Did you think I misspoke? But I said excited about tax season. When we first met our client, Caris, right about this time last year actually, when things were starting to get down to the wire, she had come to absolutely dread every tax season. It felt chaotic and stressful and just she wanted to go bury herself. Now she looks forward to it. Why do you ask? Because she knows everything is under control and she's working the plan and the plan is working for her. She's already implemented her strategies, her quarterly estimated taxes are calculated and paid, and she actually gets excited to see the final results of that proactive work she told us. Now, I don't wanna throw up anymore when I see an ad for taxes. So your takeaway here is that when you plan proactively, tech season isn't something to fear. It might be something to celebrate, and even if you don't get excited about it or want to celebrate it, it is not this horrible thing that you keep pushing down and dreading for weeks and months. These kinds of wind don't come from guessing. They come from being guided. Every one of these women started in the same place, overwhelmed, unsure, and just tired of feeling like they were missing something. None of them had the perfect situation, but all of them made one key decision to stop trying to do it alone. And that's exactly what I want you to walk away with today. I want you to know that these wins are not rare. They're the result of strategy and support. They're proof that when you get proactive and surround yourself with the right qualified team, real change happens. Not just on paper, obviously on paper, but also in how you feel about your money and your business. These wins aren't reserved for other people. They are available to you too if you choose to take that next step toward clarity and proactive planning. And listen, these are just some of the wins we've had in just recent months for our clients. There's so many more, too many for a single episode. So I want you to take a minute to think about what your tax win could look like. So imagine it's April, you're sitting at your desk and you open the PDF of your income tax return, and you're actually smiling. Because for the first time in years, you're getting a five figure refund. Instead of owing five figures, what's even cooler? Your business made more money this year and you paid less taxes. You took action, and you've already implemented strategies that help you save more this year than ever before you smile, you feel calm instead of frantic. You feel excited and confident instead of confused and scared. This isn't a dream. It's the reality for women like Katie and Lisa, our clients who decided to get strategic and surround themselves with the right support so that as they made more money, they actually paid less in taxes. Your next tax win is waiting and it can start today. So remember, these wins are not exclusive. These women are not special. They're no different from you, other than they took action, they booked the call, they sent the dm. These wins are available to you if you're willing to learn, ask questions, and invest in better support. So I want you to think about is it your turn? To stop guessing, to start strategizing so that you can have the wins start coming to you too. If you've been listening today and you did see yourself in those examples, if you did say out loud yes. Or. That could be me, or I want that to be me, or I think that that strategy, that win is exactly me. You're right. It could be you because you don't need luck to win at taxes. You just need strategy support and the willingness to get creative and proactive. So if you're ready to do that now, instead of waiting another week. Another month, another tax season, hating your business, blaming it for how much money you have to pay to the IRS. It's time to change that. I want you to send me a message on Instagram. I'm at Kimberly Terrace, cpa, and we'll also make sure to put the link in the episode description and let's chat share what's going on with me. I'll be honest with you, if there's something we can do, if we're a good fit. That's it for today's episode of Keep More Money. Let's close out the rest of the year strong, and I'll see you next week.