July 28, 2025 • 45 mins
Tax Talk 4 U Big Beautiful Individual Tax Cuts by the One Big Beautiful Bill makes the 2017 tax changes permanent, also Tax deduction on auto loan interest, increase standard deduction $31,500 for joint filers. The senior deduction is an exemption for filers 65 and older allows seniors to claim an additional $6,000. Charitable deductions allows non-itemizers to deduct up to $1,000 (single filers) or $2,000 (married couples) for cash contributions to qualified charities, starting in 2026.
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Tax Talk 4 U is broadcast live Mondays at 10AM ET and Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Tax Talk 4 U is viewed on Talk 4 TV (www.talk4tv.com).
Tax Talk 4 U Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.
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Episode Transcript
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Speaker 1 (00:00):
The topics and opinions express in the following show are
solely those of the hosts and their guests and not
those of w FOCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicit or implies shall be extended to W FOURCY
Radio or it's employees are affiliates. Any questions or comments
should be directed to those show hosts. Thank you for
(00:20):
choosing W FOURCY Radio.
Speaker 2 (00:27):
Barry G.
Speaker 3 (00:28):
Fowler EA brings you tax talk for you right here
on W four CY Radio and talk for TV. As
an enrolled agent and a national leader in tax resolution
as well as Trucker bookkeeping and tax planning. With over
thirty years of experience, Barry will break down taxes, bookkeeping,
(00:49):
tax planning, and tax relief for individuals and businesses just
like you. So let's have some tax talk for you
with your hosts.
Speaker 2 (00:58):
Barry G.
Speaker 4 (00:59):
Foul Hey, good morning, it's a wonderful Monday morning. I'm
always glad to be here talking taxes, of course, bookkeeping,
and of course see a great reach out to all
of our fabulous friends that are in the trucking business
and our clients that are listening to the show as well.
(01:24):
You know, today's one of those days where you come
in to the office, have things you have plan that
need to get done. Things you need to do first
thing in the morning, to get up early and get
to the office early so that we does and done.
And guess what, always running behind. And I mean, you know,
that's just the way life goes here in the trucking industry.
(01:47):
You know, you get dispatched to a job and then
you sit and wait for them to load the truck
and get to the places you be as soon as
you need to be there, because you're always depending on
somebody else. In this case, this is purely dependent on me.
And we go through and take the time and get
prepped for the show.
Speaker 2 (02:08):
Man.
Speaker 4 (02:09):
I'd love to have questions today because questions would make
my life a lot easier in doing this show. And
so we always enjoyed the questions. So if you've got
questions that suggests, let's get them in here. We're talking
again about that one big beautiful film. You know, people
ask me, you know, hey, can you summarize this really
(02:30):
simple and really easy? Yeah, it's a lifesaver. It prevented
going back to the tax Code of two prior to
twenty seventeen. It continues the Trump tax cuts, which was
great for every American across the board, and especially you know,
(02:51):
the middle class and those a little bit lower income
because it provided a lot of benefit. And you know,
people have said to me, hey, this bill only benefits
the rich. Well, you're listening to talking point, you know,
you're not looking at what was actually this one big,
beautiful bill. You know, Trump signed this into law to
(03:12):
live forth and it made permanent the Tax Cuts Jobs
Act of I think it was twenty seventeen, and then
it introduced a lot of new provisions. If you think
about it, you know, they put in there the higher
standard deduction, It increased child tax credits. Now, you know,
(03:32):
if you think about the rich, you know what was
important to them is something that Democrats were fighting for,
and that was because they're in states that have higher
property and state income taxes. They were trying everything they
could to increase the state and local tax deduction. When
(03:53):
you itemize. Now most people are not itemizing. You know, yes,
if you got a new mortgage, your mortgage interest is
a lot higher, and then you know, with mortgage interest
being higher, then you know you might be able to
get over that new standard you know deduction. And you know,
(04:14):
getting over that standard deduction sometimes gets harder because you know,
the standard deduction now if you're married finally joined, is
thirty one thousand, five hundred with this new tax law.
So think about that. In order to be idable to
itemize your state taxes, your local taxes, your mortgage interest
(04:35):
all has to be greater than thirty one thousand, five
hundred add in their charge of terrible contributions. So this
law didn't necessarily wasn't out there to help the wretch
because they've got to be able to itemize, so they
have some limitations in what you can take on state
and local taxes. It was ten thousand, and it's moved
(04:57):
up to you know, forty thousand, So that means you've
got to be paying a lot of mortgage interest, a
lot of pay and a lot of property tax at
state and local taxes just to be able to get
to the point of itemizing. And not to say that
you know, average Americans can't itemize. It becomes a lot
harder to itemize because you've got to get over that
(05:18):
standard deduction now be there, So you know, that's really
the crux of this, so you've got to really think
about it. Hey, it's great, Riley, thanks for asking the questions.
Why do they keep changing our taxes and why do
we even have to pay so much in taxes? Well,
first off, they keep changing the tax code all the time.
(05:42):
They think it's a lot of times to benefit people,
and it's really to benefit the government. You know, realistically,
if the tax code was as simple as it was
back when they originally created it, and I think it
was back in twenty nineteen seventeen, you know, paying only
one to three percent and everybody would think that would
be great today. Those would be ideal rates and if
(06:04):
they never changed it from that, it would be fantastic today.
But the government has gotten into I'm getting on my
soapbox here, so hey, I'm gonna say it like it is.
Government's got into catering to its constituents. So how do
they keep getting elected? I keep giving money, doing projects,
(06:26):
doing things that benefit you or I to get us
to vote for a particular person or party. If the
government would just step back and do what's in the constitution,
then maybe our taxes could be a lot lower. If
you want to know what's in the constitution, pick up
a copy of the constitution or read it. Back in
the days, it used to be church and family that
(06:47):
you rely on to help one another. Today we place
a lot more reliance to help on our government. Who
am I to say what's right and wrong. Everybody has
their different beliefs, but I'm going to tell this. If
we relied on church and family and not the government,
then government isn't that important. Government provides the structure, family
(07:10):
provides that helping hand. So hey, maybe my soapboxer today
and maybe we'll get more in my where I can preach.
We got another question here from Ralph. It seems like
they tax are paid before we make it, after we
make it, and again after that. You know, it's taxes, taxes, taxes, Ralph,
You're absolutely right. You know they've got security tax which
(07:32):
never was meant to be this high of a rate,
was never meant to be your sole retirement. It was
meant to be the safety net, but they turned it
in to what everybody thinks should be the retirement instead
of the safety net. And then they tax you your
federal income town.
Speaker 2 (07:48):
Now.
Speaker 4 (07:49):
I don't know how old you are, Ralph, but if
you remember, way back into the eighties, tax rates were
much higher. Tax rates have continued to go down. It
started with the and Revolution and Reaganomics and lowering the
tax rates and bringing down the highest tax rates and
bringing down the lower tax rates. But it came in
(08:09):
with a lot more spending and deficits. And the more
spending we have and the more deficits we have, the
more money the government needs from you and I. The
government doesn't operate like a business. Oh here we go,
so box again. The government operates like money is free.
Money isn't free. It comes from you and I. And
(08:31):
it doesn't just count the federal government. It counts state governments,
It counts local governments, counts even here in Texas, school
districts is a little government in its own And they
tax you. So again. You had your Social Security, you
had your Medicare, you have your federal income tax. If
you live in a state with state incomes, you get
state income tech. And then they get you with sales
(08:54):
tax on everything you buy. Of course, some goods are
exempt foods, necessities, but sales taxing nonetheless. And then that
isn't bad enough. They hit you with property taxes, and
so you own your property, but to kind of continue
paying the government to have your property seems like a
never ending battle. And it doesn't end. If you put
(09:16):
money into an IRA or four oh one K, and
it's not rough. They tax you when you withdraw it.
If you bring it take the money out before you're
fifty nine and a half, they tax you with a
penalty for early withdrawal. So yes, it's taxes, taxes, taxes.
I mean, if you ever wanted to hear it, there's
(09:37):
only two things certain in life, death and taxes. And
even when you die you might be subject to inherit
a tax if you own enough property or have enough assets.
But it gets harder. Hey, we're going to keep talking
about the one big, beautiful bill and answering your questions
right after this.
Speaker 3 (09:57):
We have only scratched the surface of today's Please stand
by as Barry G. Fowler will be right back with
tax stock for you. If you own the IRS or
are going through an IRS audit, don't go at it alone.
Speaker 2 (10:14):
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Speaker 2 (10:57):
Let's get back to tax stock for you.
Speaker 3 (10:59):
With more tax talk and once again here's your host,
Barry G.
Speaker 2 (11:04):
Fallon.
Speaker 4 (11:07):
Hey, welcome back. You know, one big beautiful Bill. I
really enjoyed the new tax code and keeping the original
tax code that we've been operating under Trump's at least
this time they've put it in and made it permanent.
They'll make changes and they'll tweak things, but there's a
(11:28):
lot of beautiful things that are been in this bill. Now,
if you're looking for some of the stuff like you know,
the senior deduction, over time, no tax on tips, these things.
We have the One Big Beautiful Bill podcast we did.
It's a couple of weeks ago. You can go to
(11:49):
tax TALKFORU dot com see our podcast there, go to
iHeart Spotify wherever you may be listening to your podcasts,
and you can see and listen to our podcasts on
the One Big Beautiful Bill. What we're trying to do
is cover the things that maybe we didn't give much
coverage to last time, and continuing to answer the questions
(12:11):
that you have about this One Big Beautiful Bill. So
maybe we can simplify it. You know, if you really
enjoy some light reading, you know, you can pick up
a copy of the One Big Beautiful Bill and read
all almost nine hundred pages of it, or you can
listen to tax Talk for you. We get to summarize
things for you, clarify things for you, and make your
(12:34):
life a little bit simpler. But if you like sleep,
read the bill. Hey, we read through the whole bill.
We pulled out the things that are important tax wise
for you. We got through the riff raff ay. One
of these days we'll talk about all the fluff that
they put in this bill, because you know, there isn't
a single bill out here that doesn't have fluff, waste
(12:55):
of money or waste of time. They could have made
it really much, but they've got to do things that
cater to you I and others. Crosser. They did do
an enhancement of the Dependent Care Assistance contributions. So, beginning
in twenty twenty six, Section one twenty nine A to
(13:17):
A increases the annual contribution limits for employer provided Dependent
Care Assistant program Hey, we put the initials in there
for short dcaps and it is commonly referred to as
a dependent care flexible spending arrangements. So those fssays. The
new limits starting in twenty twenty six is seventy five
(13:41):
hundred per year thirty three thousand, seven hundred and fifty
for married individuals filing separately, and that goes up from
the current level of five thousand, So the next year
you're going to see this new limit of seventy five hundred.
This Dependent Care Assistant programs allows employees to set aside
(14:04):
pre tax income for qualifying dependent care expenses such as daycare,
preschool UH, and certain adult care as well, and then
the contributions are excluded from gross income producing your federal
income tax, Social Security and Medicare taxes. So that's a
(14:27):
pretty nice part. You know, those increased limits are going
to help families with higher annual childcare costs, allowing greater
tax UH preferred deferrals and with the cost of daycare
these days, you need every help, every bit of help
you can get. I looked at what my son and
(14:48):
daughter in law, we're paying for their first child in daycare.
Oh my gosh. And you know, I know she she
was a teacher, and she after they've had their second kid,
she and my son made a decision that she wasn't
going to work anymore because they just couldn't afford to
(15:09):
keep both kids in daycare and her working. She was
just working to pay for daycare, which is just incredibly
insane what they're going to have to go through, and
you know, would go through and pay and then what
they'd be left over with. So it's great for them
to be able to do that. You know, not everybody
(15:32):
can do that, but at the cost of daycare these days,
and sometimes you've got to do what you got to do.
If if you're a tax payer and you claim the
Child Independent Care Credit, the same expenses can't be used
for the credit, and you know, the Dependent Care Assistance FSA,
(15:54):
you can't use the expenses on both sides, you know,
so you've got to go through into that.
Speaker 2 (16:00):
You know.
Speaker 4 (16:01):
I got a question here from Nellie. Can you run
through things that they put in here just to distract
from the facts, you know, how they put things in
to pull our attention from what is really going on.
And we're going to leave that for another long day
because there's a lot of things in this bill that
I considered to be fluff, things that you know, hey,
(16:23):
what they did, So let me just break this down
real quick. What they did is they didn't just do
a tax bill. So it wasn't just a bill that said, hey,
we're going to do this bill and do taxes. They
were doing one whole bill to fund the government, which
you know, in funding the government, it becomes full of
a little bit of fluff. And you know, senators congressmen
(16:47):
need things in there because they got to be able
to come home and say, hey, I got this road
project or that road project you just saw that I
just saw this morning online. You know, a congressman or
center or out of Don't Betterment is out of Pennsylvania
was just talking about one point two billion dollars set
aside to you know, be for infrastructure in Pennsylvania. You know, hey,
(17:15):
there are things that need to be done. Yes, we
need to improve our roadways, and we need to do this.
Sometimes we got to step back and take a look
at what it's costing us to do these things, and
is there a better or more effective way of doing it.
Coming into work this morning, I saw that they were
building a new two lane bridge, you know, to help
(17:35):
the flow of traffic, and it was going to cost
a couple hundred million dollars And I look at that
and go, wow, is the price of concrete that high
these days? Is the price of building this structure that
expensive these days? What are we doing? You know, maybe
we need to step back and look at the costs
(17:56):
and how we're doing things, and maybe there's a better
way of doing things. But you know, hey, I'm not
into construction. I don't know what the construction costs are.
I just know that, when you know, we were looking
to do something add on to our house, the costs
we're going to be absorbing it and we just couldn't
afford to do it. Well, if your country and nation
(18:16):
is in debt, maybe we got to look at better
ways of doing things. And maybe one point two billion
isn't the right answer. Maybe the right answer is finding
a better and more effective way of getting construction done,
and maybe there is a better route to go hey again.
(18:36):
You know, hey, this isn't meant to be a soapbox day,
but we definitely gonna look at this bill and come
out here and tell you all the different things that
are in this bill that kind of put the fluff
in there and you know, not necessarily distraction, but more
of how did we pay to get the votes to
pass a bill that should have easily passed if you
(18:58):
were just standing on on keeping the tax code the
same and enhancing the tax code and making it better
for every American that's out there. They did do an
enhancement to five twenty nine plans starting after December thirty first,
twenty twenty five, it's going to increase the annual limits
(19:22):
on distributions from five twenty nine plans from ten to
twenty thousand. It also allows distributions to be used for
additional educational expenses and connection with enrollment or intendance in
elementary or secondary public schools, so private religious. So you know,
(19:44):
there's some nice things that are going to be going
in there as well. You know, this bill did some
good enhance enhancements. Things that we saw that went away
that affected you know, middle class and lower income people,
and it had had the impacts on them. So if
(20:04):
you're not itemizing those impacts, you know, it kind of
hurt you when they took things away. So you saw
a couple of years we had where you could take
six hundred dollars as charitable contributions that went away, and
you know, they didn't look at bringing any of that
back until they started looking at what can they do
to enhance this bill and help people make more charitable contributions.
(20:26):
You see, if you can't deduct it, not everybody gives
out of the kindness of their heart. Some people give
out of the kindness of I'm going to get a
tax deduction for it. So having a little extra incentive
for people to give when there's natural natural disasters or
just to give period is a good thing. And we're
going to talk about how they change this bill to
(20:48):
give you the incentive to make charitable contributions. Right after this, we.
Speaker 2 (20:54):
Have only scratched the surface of today's show. Please stand
by us. Barry Chief Bower will be right back with tax.
Speaker 4 (21:01):
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Speaker 3 (21:05):
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Speaker 2 (21:49):
Let's get back to tax stock for.
Speaker 3 (21:51):
You with more tax stock once again, here's your host,
Barry G.
Speaker 2 (21:57):
Fallon.
Speaker 4 (22:00):
Hey, welcome back. You know we're talking about some of
the key provisions affecting individuals on this tax code. We
talked about you know how they change five twenty nine accounts,
and now we're talking about charitable contributions. So for tax
years after December thirty one, twenty twenty five, you know
this is one they should have just made it effective
this year. It would have been really nice to do.
(22:22):
But the one big beautiful bill at reinstates and enhances
Code Section one seventy p, which provided charitable contribution deductions
for non itemizers So if you're taking the standard deduction
of the thirty one to five as married filing joint
you're going to get a now a permanent deduction of
(22:44):
up to one thousand dollars in cash contributions for single filers,
two thousand for married filing jointly. And then if you're itemizing,
it's going to impose a new half a percent AGI
lore on charitable contributions. So if you're itemizing, you've got
to get over half a percent of your adjusted gross income.
(23:06):
That is kind of a bad thing to put out
there to do, especially since you're going to give marriage
finally joint a two thousand dollars deduction. Now, you can't
just take the deduction on your taxes unless you actually
are contributing money, you know, church charity, and it's got
(23:27):
to be a valid charity giving just to an individual.
To give to an individual is not a charitable deduction.
You know, they've got to have the five o' one
C three or five oh one status out there to
be able to have this deduction. Child tax credits have
been increased to twenty two hundred per child beginning in
(23:48):
twenty five, and indexes for inflation. You know, there. There
are things in this bill that adds complications. You know,
now they're going to come out with a deduction for
car loan interest. Does Mike count I got this last year. No,
it's a new deduction of up to ten thousand of
(24:10):
qualified passenger vehicle loan interest. And it's interest on debt
incurred after December thirty one, twenty twenty four, and it's
only allowed for tax years twenty twenty five through twenty
twenty eight, and then it has a phase out when
you're modified a just a gross income exceeds one hundred
(24:32):
thousand or two hundred thousand of married fileing joint. But no,
if you bought your car last year in twenty twenty four,
this doesn't count in twenty twenty five or anywhere after.
They have some other restrictions about it being made here
in the United States. You know, there are specifics behind
this rule that they won out there. Interesting it's kind
(24:57):
of help offset the cost of of these absorbitent interest
rates that we see now. You know, we talk about
interest rates and how high interest rates are back in
the eighties, that these interest rates would seem reasonable when
we were dealing with you know, high and absorbentent interest rates.
(25:17):
Back then, it was seventies and eighties and you didn't
have those two percent three percent mortgages that you know,
we had the luxury of having, you know, inflation being
under control. Right now, we're not seeing inflation going there.
You would assume the interest rates are coming down, but
they have yet to come down. And interest rates being
(25:41):
high affects not just you and I, but also affects
our federal government because of how much debt our federal
government is in. And maybe next week we'll have a
complete lecture about our federal debt and how much interest
we're paying based on the amount of debt that we have,
and how the government allows that much debt for our
(26:03):
federal government when you and I can never be that
overloaded with the same amount of debt that the government is. Hey,
you know, maybe that's a fun thing for another topic.
Let me know post comments, do you want to hear
about our national debt and the things that we got
going on here in this country? Health savings account enhancements
(26:24):
for plans beginning after December thirty one, twenty four. That
one big beautiful bill permanently extends the Safe Harbor providing
that health plan will not fail to be treated as
a high deductible plan because of not having a high
deductible for telehealth services. So, you know, there were some
(26:46):
limitations in this on these bills and being able to
use a HSA Health Savings account because the deductible on
telehealth wasn't considered to be high deductible. Beginning in twenty
twenty six, this bill also is going to have individuals
(27:06):
with high deductile health plans also enroll in direct primary
care arrangements, and it allows HSA funds to be used
to pay for dependent care services up to one hundred
and fifty months for individuals, three hundred a month for
family arrangements, and then for all bronze and catastrophic health
insurance plans on the exchange to be eligible plans for
(27:29):
the purpose of making HSA contributions. Yeah, try saying some
of that stuff real quick, ten times over. You know,
it's some of the things are kind of crazy out there,
you know, some of the things they threw into this bill.
Hey gamblers, you know, let's talk about gambling. You know,
(27:52):
you got gambling winnings. I want to direct my gambling losses,
you know, beginning in twenty twenty six, One Big Beautiful
Bill further limits the term losses for wagering transactions Code
Section one sixty five ninety percent of the amount of
such losses. Any deduction for gambling losses remains limited to
(28:13):
the amount of gambling innings and still got to itemize.
You know, this bill is one big beautiful bill. You know,
a lot of pages, a lot of things, a lot
of changes that are out there. You know, it's going
to have some inflation adjustments as we go. The qube
(28:36):
QB B B A. I always laugh when I see
this in the abbreviations for you know, notes or things
that we're taking, and you know, it's a pretty long abbreviation.
One Big Beautiful Bill Act makes also those TCJA Trump
(29:02):
tax cuts individual rates permanent and provides for extra year
of inflation adjustments for the ten, twelve, and twenty two
percent brackets. Hey, that's nice. It's given you those adjustments,
and those are the lowest brackets that are out there.
It also enhanced the standard deduction and it makes it
(29:24):
permanent and further enhances by increasing the amount for twenty
twenty five. Just like we talked about. You know, you're
going from fifteen thousand or going to fifteen thousand seven
to fifty for single filers, twenty three thousand, six twenty
five for heads household, and thirty one thousand file five
hundred for married and filing jointly. So it was an
across the board increase of five percent, and that's going
(29:46):
to be the new base for inflation indexing after twenty
twenty five.
Speaker 2 (29:51):
You know.
Speaker 4 (29:51):
So there's a lot of things that we can go
through and do and is going to make your life
a little bit better, a little bit easier to use
this bill out there. You know, we've been talking about individuals,
and we've been talking about the things that you know
helped you. We're going to go back and talk about
(30:13):
no tax on overtime. We're going to talk about the
senior deduction and no tax on tips a little bit more.
We come right back after that.
Speaker 3 (30:25):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back with.
Speaker 2 (30:32):
Tax talk for you.
Speaker 3 (30:36):
As an owner operator, you already spend too much time
away from your family. Stop spending time doing paperwork. Go
to Trucker tax tools dot Com, a solution built specifically
for truckers. Trucker tax Tools dot Com makes your life
run smoothly. Let's get back to tax stock for you
(30:58):
with more tax stock once again.
Speaker 2 (31:01):
Here's your host, Barry G. Fallum.
Speaker 4 (31:06):
Hey, welcome back. I got the question here from chet.
I'm an owner operator and over the road. What does
this bill do for me? Hey, I'll tell you what.
Get on your CV radio and hey, tell your friends
tune in right now to Tax Talk for you. I'm
going to give you about two or three minutes to
(31:26):
message all your friends out there because we're going to
talk about some of the bill that we have out
here for trucking that's in this one big, beautiful bill.
A matter of fact, it helps all business across the board.
I'm going to address really quick, no tax on tips,
no tax on overtime, and social Security, and then we're
going to talk about trucking. So you got time to
(31:47):
get your friends to listen to us. Go to Tax
Talk for you or W four CY radio.
Speaker 2 (31:52):
Hey.
Speaker 4 (31:53):
Deduction for tipp income. This bill created an above the
line deduction of up to twenty five and for qualified
tips received by an individual occupation which is customarily and
regularly received tips. You know it does have some phase
outs out here, and this no tax on tips is
(32:14):
not permanent. It goes from twenty five through twenty eight.
If it works really well, I can see them making
this permanent or extending this, and then you're subject to
some minified adjusted gross income levels anything above one hundred
and fifty thousand or three hundred thousand. In joint no
tax on overtime. Again, this is only from twenty five
(32:36):
to twenty eight, and it creates an above the line
deduction for up to twelve thousand to five hundred or
twenty five thousand in the case of a joint filing.
Qualified overtime compensation is defined as what's paid to an
individual under section seven of the Federal State Fair Labor
State Standards Act fls A. And then you've got your
(33:01):
phase outs as well over there, and another temporary deduction
is a deduction for individuals that have attained the age
of sixty five before the end of the tax year.
The deduction amount is six thousand per individual. The senior
deduction begins phase out once it's over seventy five thousand
(33:23):
or one hundred and fifty thousand period. Finally, joint and
again it's phased out after twenty twenty five to twenty
twenty eight. So if you're a senior, that's technically no
tax on Social Security, no tax, and then no tax
on overtime and no tax on tips. Remember this phase
out after twenty twenty eight. Maybe they'll come back and
(33:48):
make it permanent. Truckers, business owners, the bill was chalked
full of things to help you business.
Speaker 2 (33:57):
Now.
Speaker 4 (33:57):
I hope you get on your CV radio. I hope
you maybe you got on the phones and text message
your friends, and I hope a lot of you went
over to Tax Talk for You and hit that as
one of your favorites, or go over to the Facebook
page truck tax Tools Facebook page, Taxation Solutions, tax Relief
Facebook page, or you know again, tax Talk for You
(34:18):
and tax Talk for You, and that's the number four,
and the letter you dot com Tax Talk the number four,
and then you just the letter you dot com and
you can hear this, and then you can go and
get our podcasts and tell people, hey, we talked about
what kind of savings we've got for business owners and truckers.
(34:41):
They expanded the qualified Business Income deduction and made it
permanent the current twenty percent rate increases the deduction limit
phase in range from fifty to seventy five for none
joint returns and a one hundred to one hundred and fifty.
In addition, the act introduces a new inflation adjusted minimum
(35:05):
deduction for taxpayers who have at least one thousand of
qualified business income from one or more active trades or
businesses in which the taxpayer materially participates. Hey, if you're
an over the road trucker, you're participating in your business.
If you've got QBI, you then have a minimum of
(35:29):
four hundred dollars you're going to be able to take
or being in business. Now, you also, in this bill
permanently extended the additional first year depreciation deduction, and the
allowance has now been increased to one hundred percent for
property acquired or placed in service on or after January nineteenth,
(35:53):
twenty twenty five. Now, if you've bought your truck January tenth,
put it in service in January before January nineteenth, that's
what you don't get the one hundred percent deduction. You've
fallen under the old bonus depreciation rules. But if you
didn't put it in service until after then, then you
can possibly take bonus appreciation. Now, I also warn you
(36:17):
don't count on one hundred percent depreciation because sometimes that
isn't the best benefit for me. A lot of times
I hear from people that told me, you know, hey,
I talking to somebody else and they took a hundred
percent depreciation they paid zero tax. If you paid zero tax,
then you possibly wasted depreciation that was on income that
(36:38):
was taxed at ten percent or lower. And maybe your
business is going to be such that you could use
more deductions in the future, save yourself more money in
the future than what you're going to save today. Got
to do some analysis out there. Don't fall for the
trap of your tax person trying to make themselves look
(36:59):
good by giving you a large refund at a cost
of future refunds or future lower tax rates with use
of appreciation. Same with Section one seventy nine Expensive the
One Big Beautiful Bill increase the maximum amount a taxpayer
may expense under Code Section one seventy nine. The two
point five million Hey, I'm glad to see they increase
(37:21):
this deduction, but I'm going to tell you what you're
buying a two point five million dollars truck, tractor and trailer.
You're never going to make it in the trucking business. Now,
if you decided you're going into the trucking business and
you have getting a fleet of trucks, then yes, we
could possibly use Section one seventy nine to appreciate the
(37:44):
maximum two point five million. Now, it's reduced by the
amount by which the cost of qualifying profit property exceeds
four million. So if you're buying four million worth of
trucks or more, then you're going to be reducing that
two point one five million dollars down. The two point
five and the four million are going to be adjusted
for inflation for tax years beginning after twenty twenty five.
(38:09):
This rule applies to anything purchased and put in service
after December thirty one four, so this year. So those
are a couple of really nice things that are out there.
You as a trucker are also going to be able
to deduct for dums. Now, for diums and everything. What
(38:31):
you've got to look at is nights away from home
on the road. Per diems right now are at eighty dollars,
maybe inflation adjusted later this year. Last year we got
a huge inflation adjustment that took place October first, so
you had to make sure you were tracking the difference
between your days in the beginning of the year through
(38:53):
October first, and then October first to the end of
the year, and then you've got the inflation adjusted out
for the last three months in the lower amount sixty
nine dollars in the first part of the year, and
then eighty percent was deductible. So it was a real
nice adjustment. We'll see if they're going to do the
(39:14):
adjustment this year. It took them a few years to
do it before. But again, you've got to have a
tax home. You've got to have something that you're caring
for and taking care of paying for. Maybe it's fully
paid off and you're paying just to maintain it, whatever
the case may be, you've got a home. And then
therefore you know when you're out on the road those
(39:36):
nights away from home, you'll be able to take the deduction. Now,
remember the first day you leave you get half a day,
and day you come home you get a half a day,
but everything in between is a full day. So if
you're reporting to us that I was on the road
four hundred and twenty five days last year, the first
thing we're going to tell you, is there only three
(39:57):
hundred and sixty five days in a year. Second thing
we're going to tell that means you never returned home,
and therefore you don't get the per diems and therefore
you take actual expenses.
Speaker 2 (40:09):
That's it.
Speaker 4 (40:10):
So realistically, every trucker I know returns home to spend
some time with family. If you're traveling in your truck
and you have no home, you're considered a tax turtle
and therefore the pre deem out there. Vince asked a
question about per diems, does that include if you are
renting or do you have to own. You can be
(40:30):
renting an apartment that works, You can be renting a
home that works, You can own a home, own a kindo.
Those things work. As a matter of fact, if you've
got a home or apartment or whatever, there's some advantages
that you can actually lease the place, your home or
(40:53):
your apartment to your business for up to fourteen days
and got a lot of qualifications you can do on it.
But it could be tax free income or expense for
your business out there. Alex with his question, is with
the tax changing all the time, can you really plan
(41:13):
for future taxes? Yes? No, maybe what you're planning and
when we are planning is we are looking at what
the permanent tax code is, and then we plan around
that tax code to begin with. We also look when
we're planning around, what are the temporary things in tax
code and how do you use these items to best
(41:37):
impact you personally on your individual taxes or if you're
running a business like we do with Trucker tax tools
and working with truckers out there, we help them plan
to save the most money for their business and then
via that we're saving as much money for them personally.
(42:00):
One thing I could say about tax planning is tax
planning is adaptive for adapting. Here you're out every year,
we're looking at, you know, net income. What things can
our owners of our businesses do that would help their
bottom line. Now bottom line is both before and after
(42:23):
tax bottom line, so you know, maybe it's putting more
money away for retirement. Maybe it's if you've got employees
offering a four to h one K program that helps
save taxes for both employer and the employee based on
what's being put away. If you are a sole owner,
maybe it's putting a solo four oh one K in place,
(42:47):
or a simplified employee pension plan. If you've got a
high deductible HS health plan, maybe it's putting money into
an HSA and maximizing the tax deduction there. Maybe it's
finding a way to put dependent care plans in place
that help you or your employees across the board. These
(43:10):
are the things that you do in tax planning and
how to save money for you and I as a
business owner and then as an individual. So tax planning
you have a lot of variables. Now, if you're an
owner operator, I'm going to tell you the best thing
to do right now is pick up the phone and
(43:30):
call the Trucker Tax Tools and then go to Trucker
Tax Tools dot com. Put in your information, we'll call you,
we'll get you set up. We'll talk about your bookkeeping, taxes,
what we do to save you money and make your
life running or smoothly. But again, you know it starts
with going to Trucker Tax Tools dot com. Hey, I'm
(43:51):
running out of time and I've been long winded. Make
sure each week what you do is you come here
to tax Talk for you dot com, follow us there
or follow us on Facebook. Never miss an episode, whether
it's our podcast iHeart wherever you listen podcast look us
up at Tax Talk for You, but be here every
Monday at ten am Eastern time, right here on W
(44:13):
four CY Radio. Thank you having God bless, glorious and
an awesome week. See you next week.
Speaker 3 (44:21):
Are you an individual or business that wants to understand
taxes and how they affect you? Are you looking for
specific tax advice for self employed business owners and truckers.
Are you behind on taxes and your bookkeeping? Are you
dealing with dirs and ready to have some relief? Then
(44:42):
you need Tax Talk for You, hosted by tax and
trucker expert Barry g. Fouer Ea Kenyan ten am the
Eastern Time every Monday, right here on W four CY
Radio and Talk for TV. Don't forget to check this
and past episodes at tax Talk for You dot com.
(45:02):
See you next week at w fur c Y dot
com
The topics and opinions express in the following show are
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make no recommendations or endorsements for radio show programs, services,
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Radio or it's employees are affiliates. Any questions or comments
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(00:20):
choosing W FOURCY Radio.
Speaker 2 (00:27):
Barry G.
Speaker 3 (00:28):
Fowler EA brings you tax talk for you right here
on W four CY Radio and talk for TV. As
an enrolled agent and a national leader in tax resolution
as well as Trucker bookkeeping and tax planning. With over
thirty years of experience, Barry will break down taxes, bookkeeping,
(00:49):
tax planning, and tax relief for individuals and businesses just
like you. So let's have some tax talk for you
with your hosts.
Speaker 2 (00:58):
Barry G.
Speaker 4 (00:59):
Foul Hey, good morning, it's a wonderful Monday morning. I'm
always glad to be here talking taxes, of course, bookkeeping,
and of course see a great reach out to all
of our fabulous friends that are in the trucking business
and our clients that are listening to the show as well.
(01:24):
You know, today's one of those days where you come
in to the office, have things you have plan that
need to get done. Things you need to do first
thing in the morning, to get up early and get
to the office early so that we does and done.
And guess what, always running behind. And I mean, you know,
that's just the way life goes here in the trucking industry.
(01:47):
You know, you get dispatched to a job and then
you sit and wait for them to load the truck
and get to the places you be as soon as
you need to be there, because you're always depending on
somebody else. In this case, this is purely dependent on me.
And we go through and take the time and get
prepped for the show.
Speaker 2 (02:08):
Man.
Speaker 4 (02:09):
I'd love to have questions today because questions would make
my life a lot easier in doing this show. And
so we always enjoyed the questions. So if you've got
questions that suggests, let's get them in here. We're talking
again about that one big beautiful film. You know, people
ask me, you know, hey, can you summarize this really
(02:30):
simple and really easy? Yeah, it's a lifesaver. It prevented
going back to the tax Code of two prior to
twenty seventeen. It continues the Trump tax cuts, which was
great for every American across the board, and especially you know,
(02:51):
the middle class and those a little bit lower income
because it provided a lot of benefit. And you know,
people have said to me, hey, this bill only benefits
the rich. Well, you're listening to talking point, you know,
you're not looking at what was actually this one big,
beautiful bill. You know, Trump signed this into law to
(03:12):
live forth and it made permanent the Tax Cuts Jobs
Act of I think it was twenty seventeen, and then
it introduced a lot of new provisions. If you think
about it, you know, they put in there the higher
standard deduction, It increased child tax credits. Now, you know,
(03:32):
if you think about the rich, you know what was
important to them is something that Democrats were fighting for,
and that was because they're in states that have higher
property and state income taxes. They were trying everything they
could to increase the state and local tax deduction. When
(03:53):
you itemize. Now most people are not itemizing. You know, yes,
if you got a new mortgage, your mortgage interest is
a lot higher, and then you know, with mortgage interest
being higher, then you know you might be able to
get over that new standard you know deduction. And you know,
(04:14):
getting over that standard deduction sometimes gets harder because you know,
the standard deduction now if you're married finally joined, is
thirty one thousand, five hundred with this new tax law.
So think about that. In order to be idable to
itemize your state taxes, your local taxes, your mortgage interest
(04:35):
all has to be greater than thirty one thousand, five
hundred add in their charge of terrible contributions. So this
law didn't necessarily wasn't out there to help the wretch
because they've got to be able to itemize, so they
have some limitations in what you can take on state
and local taxes. It was ten thousand, and it's moved
(04:57):
up to you know, forty thousand, So that means you've
got to be paying a lot of mortgage interest, a
lot of pay and a lot of property tax at
state and local taxes just to be able to get
to the point of itemizing. And not to say that
you know, average Americans can't itemize. It becomes a lot
harder to itemize because you've got to get over that
(05:18):
standard deduction now be there, So you know, that's really
the crux of this, so you've got to really think
about it. Hey, it's great, Riley, thanks for asking the questions.
Why do they keep changing our taxes and why do
we even have to pay so much in taxes? Well,
first off, they keep changing the tax code all the time.
(05:42):
They think it's a lot of times to benefit people,
and it's really to benefit the government. You know, realistically,
if the tax code was as simple as it was
back when they originally created it, and I think it
was back in twenty nineteen seventeen, you know, paying only
one to three percent and everybody would think that would
be great today. Those would be ideal rates and if
(06:04):
they never changed it from that, it would be fantastic today.
But the government has gotten into I'm getting on my
soapbox here, so hey, I'm gonna say it like it is.
Government's got into catering to its constituents. So how do
they keep getting elected? I keep giving money, doing projects,
(06:26):
doing things that benefit you or I to get us
to vote for a particular person or party. If the
government would just step back and do what's in the constitution,
then maybe our taxes could be a lot lower. If
you want to know what's in the constitution, pick up
a copy of the constitution or read it. Back in
the days, it used to be church and family that
(06:47):
you rely on to help one another. Today we place
a lot more reliance to help on our government. Who
am I to say what's right and wrong. Everybody has
their different beliefs, but I'm going to tell this. If
we relied on church and family and not the government,
then government isn't that important. Government provides the structure, family
(07:10):
provides that helping hand. So hey, maybe my soapboxer today
and maybe we'll get more in my where I can preach.
We got another question here from Ralph. It seems like
they tax are paid before we make it, after we
make it, and again after that. You know, it's taxes, taxes, taxes, Ralph,
You're absolutely right. You know they've got security tax which
(07:32):
never was meant to be this high of a rate,
was never meant to be your sole retirement. It was
meant to be the safety net, but they turned it
in to what everybody thinks should be the retirement instead
of the safety net. And then they tax you your
federal income town.
Speaker 2 (07:48):
Now.
Speaker 4 (07:49):
I don't know how old you are, Ralph, but if
you remember, way back into the eighties, tax rates were
much higher. Tax rates have continued to go down. It
started with the and Revolution and Reaganomics and lowering the
tax rates and bringing down the highest tax rates and
bringing down the lower tax rates. But it came in
(08:09):
with a lot more spending and deficits. And the more
spending we have and the more deficits we have, the
more money the government needs from you and I. The
government doesn't operate like a business. Oh here we go,
so box again. The government operates like money is free.
Money isn't free. It comes from you and I. And
(08:31):
it doesn't just count the federal government. It counts state governments,
It counts local governments, counts even here in Texas, school
districts is a little government in its own And they
tax you. So again. You had your Social Security, you
had your Medicare, you have your federal income tax. If
you live in a state with state incomes, you get
state income tech. And then they get you with sales
(08:54):
tax on everything you buy. Of course, some goods are
exempt foods, necessities, but sales taxing nonetheless. And then that
isn't bad enough. They hit you with property taxes, and
so you own your property, but to kind of continue
paying the government to have your property seems like a
never ending battle. And it doesn't end. If you put
(09:16):
money into an IRA or four oh one K, and
it's not rough. They tax you when you withdraw it.
If you bring it take the money out before you're
fifty nine and a half, they tax you with a
penalty for early withdrawal. So yes, it's taxes, taxes, taxes.
I mean, if you ever wanted to hear it, there's
(09:37):
only two things certain in life, death and taxes. And
even when you die you might be subject to inherit
a tax if you own enough property or have enough assets.
But it gets harder. Hey, we're going to keep talking
about the one big, beautiful bill and answering your questions
right after this.
Speaker 3 (09:57):
We have only scratched the surface of today's Please stand
by as Barry G. Fowler will be right back with
tax stock for you. If you own the IRS or
are going through an IRS audit, don't go at it alone.
Speaker 2 (10:14):
Call Taxation Solutions tax.
Speaker 3 (10:16):
Relief at eight eight eight nine three zero one zero
one six.
Speaker 2 (10:21):
We are your solution.
Speaker 3 (10:23):
For irs, TETs, audits, back taxes, garnishments, leans and levees.
Whether you're an individual or business, you need a solution
and a strong, aggressive tax resolution. Don't let the IRS
walk all over you. Stop the IRS now call eight
eight eight nine three zero one zero one six or
(10:46):
go to Taxationsolutions dot net now for a free no
obligation consultation.
Speaker 2 (10:57):
Let's get back to tax stock for you.
Speaker 3 (10:59):
With more tax talk and once again here's your host,
Barry G.
Speaker 2 (11:04):
Fallon.
Speaker 4 (11:07):
Hey, welcome back. You know, one big beautiful Bill. I
really enjoyed the new tax code and keeping the original
tax code that we've been operating under Trump's at least
this time they've put it in and made it permanent.
They'll make changes and they'll tweak things, but there's a
(11:28):
lot of beautiful things that are been in this bill. Now,
if you're looking for some of the stuff like you know,
the senior deduction, over time, no tax on tips, these things.
We have the One Big Beautiful Bill podcast we did.
It's a couple of weeks ago. You can go to
(11:49):
tax TALKFORU dot com see our podcast there, go to
iHeart Spotify wherever you may be listening to your podcasts,
and you can see and listen to our podcasts on
the One Big Beautiful Bill. What we're trying to do
is cover the things that maybe we didn't give much
coverage to last time, and continuing to answer the questions
(12:11):
that you have about this One Big Beautiful Bill. So
maybe we can simplify it. You know, if you really
enjoy some light reading, you know, you can pick up
a copy of the One Big Beautiful Bill and read
all almost nine hundred pages of it, or you can
listen to tax Talk for you. We get to summarize
things for you, clarify things for you, and make your
(12:34):
life a little bit simpler. But if you like sleep,
read the bill. Hey, we read through the whole bill.
We pulled out the things that are important tax wise
for you. We got through the riff raff ay. One
of these days we'll talk about all the fluff that
they put in this bill, because you know, there isn't
a single bill out here that doesn't have fluff, waste
(12:55):
of money or waste of time. They could have made
it really much, but they've got to do things that
cater to you I and others. Crosser. They did do
an enhancement of the Dependent Care Assistance contributions. So, beginning
in twenty twenty six, Section one twenty nine A to
(13:17):
A increases the annual contribution limits for employer provided Dependent
Care Assistant program Hey, we put the initials in there
for short dcaps and it is commonly referred to as
a dependent care flexible spending arrangements. So those fssays. The
new limits starting in twenty twenty six is seventy five
(13:41):
hundred per year thirty three thousand, seven hundred and fifty
for married individuals filing separately, and that goes up from
the current level of five thousand, So the next year
you're going to see this new limit of seventy five hundred.
This Dependent Care Assistant programs allows employees to set aside
(14:04):
pre tax income for qualifying dependent care expenses such as daycare,
preschool UH, and certain adult care as well, and then
the contributions are excluded from gross income producing your federal
income tax, Social Security and Medicare taxes. So that's a
(14:27):
pretty nice part. You know, those increased limits are going
to help families with higher annual childcare costs, allowing greater
tax UH preferred deferrals and with the cost of daycare
these days, you need every help, every bit of help
you can get. I looked at what my son and
(14:48):
daughter in law, we're paying for their first child in daycare.
Oh my gosh. And you know, I know she she
was a teacher, and she after they've had their second kid,
she and my son made a decision that she wasn't
going to work anymore because they just couldn't afford to
(15:09):
keep both kids in daycare and her working. She was
just working to pay for daycare, which is just incredibly
insane what they're going to have to go through, and
you know, would go through and pay and then what
they'd be left over with. So it's great for them
to be able to do that. You know, not everybody
(15:32):
can do that, but at the cost of daycare these days,
and sometimes you've got to do what you got to do.
If if you're a tax payer and you claim the
Child Independent Care Credit, the same expenses can't be used
for the credit, and you know, the Dependent Care Assistance FSA,
(15:54):
you can't use the expenses on both sides, you know,
so you've got to go through into that.
Speaker 2 (16:00):
You know.
Speaker 4 (16:01):
I got a question here from Nellie. Can you run
through things that they put in here just to distract
from the facts, you know, how they put things in
to pull our attention from what is really going on.
And we're going to leave that for another long day
because there's a lot of things in this bill that
I considered to be fluff, things that you know, hey,
(16:23):
what they did, So let me just break this down
real quick. What they did is they didn't just do
a tax bill. So it wasn't just a bill that said, hey,
we're going to do this bill and do taxes. They
were doing one whole bill to fund the government, which
you know, in funding the government, it becomes full of
a little bit of fluff. And you know, senators congressmen
(16:47):
need things in there because they got to be able
to come home and say, hey, I got this road
project or that road project you just saw that I
just saw this morning online. You know, a congressman or
center or out of Don't Betterment is out of Pennsylvania
was just talking about one point two billion dollars set
aside to you know, be for infrastructure in Pennsylvania. You know, hey,
(17:15):
there are things that need to be done. Yes, we
need to improve our roadways, and we need to do this.
Sometimes we got to step back and take a look
at what it's costing us to do these things, and
is there a better or more effective way of doing it.
Coming into work this morning, I saw that they were
building a new two lane bridge, you know, to help
(17:35):
the flow of traffic, and it was going to cost
a couple hundred million dollars And I look at that
and go, wow, is the price of concrete that high
these days? Is the price of building this structure that
expensive these days? What are we doing? You know, maybe
we need to step back and look at the costs
(17:56):
and how we're doing things, and maybe there's a better
way of doing things. But you know, hey, I'm not
into construction. I don't know what the construction costs are.
I just know that, when you know, we were looking
to do something add on to our house, the costs
we're going to be absorbing it and we just couldn't
afford to do it. Well, if your country and nation
(18:16):
is in debt, maybe we got to look at better
ways of doing things. And maybe one point two billion
isn't the right answer. Maybe the right answer is finding
a better and more effective way of getting construction done,
and maybe there is a better route to go hey again.
(18:36):
You know, hey, this isn't meant to be a soapbox day,
but we definitely gonna look at this bill and come
out here and tell you all the different things that
are in this bill that kind of put the fluff
in there and you know, not necessarily distraction, but more
of how did we pay to get the votes to
pass a bill that should have easily passed if you
(18:58):
were just standing on on keeping the tax code the
same and enhancing the tax code and making it better
for every American that's out there. They did do an
enhancement to five twenty nine plans starting after December thirty first,
twenty twenty five, it's going to increase the annual limits
(19:22):
on distributions from five twenty nine plans from ten to
twenty thousand. It also allows distributions to be used for
additional educational expenses and connection with enrollment or intendance in
elementary or secondary public schools, so private religious. So you know,
(19:44):
there's some nice things that are going to be going
in there as well. You know, this bill did some
good enhance enhancements. Things that we saw that went away
that affected you know, middle class and lower income people,
and it had had the impacts on them. So if
(20:04):
you're not itemizing those impacts, you know, it kind of
hurt you when they took things away. So you saw
a couple of years we had where you could take
six hundred dollars as charitable contributions that went away, and
you know, they didn't look at bringing any of that
back until they started looking at what can they do
to enhance this bill and help people make more charitable contributions.
(20:26):
You see, if you can't deduct it, not everybody gives
out of the kindness of their heart. Some people give
out of the kindness of I'm going to get a
tax deduction for it. So having a little extra incentive
for people to give when there's natural natural disasters or
just to give period is a good thing. And we're
going to talk about how they change this bill to
(20:48):
give you the incentive to make charitable contributions. Right after this, we.
Speaker 2 (20:54):
Have only scratched the surface of today's show. Please stand
by us. Barry Chief Bower will be right back with tax.
Speaker 4 (21:01):
Talk for you.
Speaker 3 (21:05):
As an owner operator, you already spend too much time
away from your family. Trucker Tax Tools handles all your
bookkeeping and taxes, no matter what level trucker you are.
Speaker 2 (21:15):
Life on the road can be taxing, but.
Speaker 3 (21:18):
That doesn't mean that your wallet or time with your
family should suffer. Trucker Tax Tools makes your life run smoothly.
Go to Trucker tax Tools dot com for a free
guide that will give you the tools to never worry
about your taxes again. Call Trucker Tax Tools eight seven
seven nine sixty six two four seven seven or go
(21:41):
to Trucker tax Tools dot com now and let the
experts keep you trucking.
Speaker 2 (21:49):
Let's get back to tax stock for.
Speaker 3 (21:51):
You with more tax stock once again, here's your host,
Barry G.
Speaker 2 (21:57):
Fallon.
Speaker 4 (22:00):
Hey, welcome back. You know we're talking about some of
the key provisions affecting individuals on this tax code. We
talked about you know how they change five twenty nine accounts,
and now we're talking about charitable contributions. So for tax
years after December thirty one, twenty twenty five, you know
this is one they should have just made it effective
this year. It would have been really nice to do.
(22:22):
But the one big beautiful bill at reinstates and enhances
Code Section one seventy p, which provided charitable contribution deductions
for non itemizers So if you're taking the standard deduction
of the thirty one to five as married filing joint
you're going to get a now a permanent deduction of
(22:44):
up to one thousand dollars in cash contributions for single filers,
two thousand for married filing jointly. And then if you're itemizing,
it's going to impose a new half a percent AGI
lore on charitable contributions. So if you're itemizing, you've got
to get over half a percent of your adjusted gross income.
(23:06):
That is kind of a bad thing to put out
there to do, especially since you're going to give marriage
finally joint a two thousand dollars deduction. Now, you can't
just take the deduction on your taxes unless you actually
are contributing money, you know, church charity, and it's got
(23:27):
to be a valid charity giving just to an individual.
To give to an individual is not a charitable deduction.
You know, they've got to have the five o' one
C three or five oh one status out there to
be able to have this deduction. Child tax credits have
been increased to twenty two hundred per child beginning in
(23:48):
twenty five, and indexes for inflation. You know, there. There
are things in this bill that adds complications. You know,
now they're going to come out with a deduction for
car loan interest. Does Mike count I got this last year. No,
it's a new deduction of up to ten thousand of
(24:10):
qualified passenger vehicle loan interest. And it's interest on debt
incurred after December thirty one, twenty twenty four, and it's
only allowed for tax years twenty twenty five through twenty
twenty eight, and then it has a phase out when
you're modified a just a gross income exceeds one hundred
(24:32):
thousand or two hundred thousand of married fileing joint. But no,
if you bought your car last year in twenty twenty four,
this doesn't count in twenty twenty five or anywhere after.
They have some other restrictions about it being made here
in the United States. You know, there are specifics behind
this rule that they won out there. Interesting it's kind
(24:57):
of help offset the cost of of these absorbitent interest
rates that we see now. You know, we talk about
interest rates and how high interest rates are back in
the eighties, that these interest rates would seem reasonable when
we were dealing with you know, high and absorbentent interest rates.
(25:17):
Back then, it was seventies and eighties and you didn't
have those two percent three percent mortgages that you know,
we had the luxury of having, you know, inflation being
under control. Right now, we're not seeing inflation going there.
You would assume the interest rates are coming down, but
they have yet to come down. And interest rates being
(25:41):
high affects not just you and I, but also affects
our federal government because of how much debt our federal
government is in. And maybe next week we'll have a
complete lecture about our federal debt and how much interest
we're paying based on the amount of debt that we have,
and how the government allows that much debt for our
(26:03):
federal government when you and I can never be that
overloaded with the same amount of debt that the government is. Hey,
you know, maybe that's a fun thing for another topic.
Let me know post comments, do you want to hear
about our national debt and the things that we got
going on here in this country? Health savings account enhancements
(26:24):
for plans beginning after December thirty one, twenty four. That
one big beautiful bill permanently extends the Safe Harbor providing
that health plan will not fail to be treated as
a high deductible plan because of not having a high
deductible for telehealth services. So, you know, there were some
(26:46):
limitations in this on these bills and being able to
use a HSA Health Savings account because the deductible on
telehealth wasn't considered to be high deductible. Beginning in twenty
twenty six, this bill also is going to have individuals
(27:06):
with high deductile health plans also enroll in direct primary
care arrangements, and it allows HSA funds to be used
to pay for dependent care services up to one hundred
and fifty months for individuals, three hundred a month for
family arrangements, and then for all bronze and catastrophic health
insurance plans on the exchange to be eligible plans for
(27:29):
the purpose of making HSA contributions. Yeah, try saying some
of that stuff real quick, ten times over. You know,
it's some of the things are kind of crazy out there,
you know, some of the things they threw into this bill.
Hey gamblers, you know, let's talk about gambling. You know,
(27:52):
you got gambling winnings. I want to direct my gambling losses,
you know, beginning in twenty twenty six, One Big Beautiful
Bill further limits the term losses for wagering transactions Code
Section one sixty five ninety percent of the amount of
such losses. Any deduction for gambling losses remains limited to
(28:13):
the amount of gambling innings and still got to itemize.
You know, this bill is one big beautiful bill. You know,
a lot of pages, a lot of things, a lot
of changes that are out there. You know, it's going
to have some inflation adjustments as we go. The qube
(28:36):
QB B B A. I always laugh when I see
this in the abbreviations for you know, notes or things
that we're taking, and you know, it's a pretty long abbreviation.
One Big Beautiful Bill Act makes also those TCJA Trump
(29:02):
tax cuts individual rates permanent and provides for extra year
of inflation adjustments for the ten, twelve, and twenty two
percent brackets. Hey, that's nice. It's given you those adjustments,
and those are the lowest brackets that are out there.
It also enhanced the standard deduction and it makes it
(29:24):
permanent and further enhances by increasing the amount for twenty
twenty five. Just like we talked about. You know, you're
going from fifteen thousand or going to fifteen thousand seven
to fifty for single filers, twenty three thousand, six twenty
five for heads household, and thirty one thousand file five
hundred for married and filing jointly. So it was an
across the board increase of five percent, and that's going
(29:46):
to be the new base for inflation indexing after twenty
twenty five.
Speaker 2 (29:51):
You know.
Speaker 4 (29:51):
So there's a lot of things that we can go
through and do and is going to make your life
a little bit better, a little bit easier to use
this bill out there. You know, we've been talking about individuals,
and we've been talking about the things that you know
helped you. We're going to go back and talk about
(30:13):
no tax on overtime. We're going to talk about the
senior deduction and no tax on tips a little bit more.
We come right back after that.
Speaker 3 (30:25):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back with.
Speaker 2 (30:32):
Tax talk for you.
Speaker 3 (30:36):
As an owner operator, you already spend too much time
away from your family. Stop spending time doing paperwork. Go
to Trucker tax tools dot Com, a solution built specifically
for truckers. Trucker tax Tools dot Com makes your life
run smoothly. Let's get back to tax stock for you
(30:58):
with more tax stock once again.
Speaker 2 (31:01):
Here's your host, Barry G. Fallum.
Speaker 4 (31:06):
Hey, welcome back. I got the question here from chet.
I'm an owner operator and over the road. What does
this bill do for me? Hey, I'll tell you what.
Get on your CV radio and hey, tell your friends
tune in right now to Tax Talk for you. I'm
going to give you about two or three minutes to
(31:26):
message all your friends out there because we're going to
talk about some of the bill that we have out
here for trucking that's in this one big, beautiful bill.
A matter of fact, it helps all business across the board.
I'm going to address really quick, no tax on tips,
no tax on overtime, and social Security, and then we're
going to talk about trucking. So you got time to
(31:47):
get your friends to listen to us. Go to Tax
Talk for you or W four CY radio.
Speaker 2 (31:52):
Hey.
Speaker 4 (31:53):
Deduction for tipp income. This bill created an above the
line deduction of up to twenty five and for qualified
tips received by an individual occupation which is customarily and
regularly received tips. You know it does have some phase
outs out here, and this no tax on tips is
(32:14):
not permanent. It goes from twenty five through twenty eight.
If it works really well, I can see them making
this permanent or extending this, and then you're subject to
some minified adjusted gross income levels anything above one hundred
and fifty thousand or three hundred thousand. In joint no
tax on overtime. Again, this is only from twenty five
(32:36):
to twenty eight, and it creates an above the line
deduction for up to twelve thousand to five hundred or
twenty five thousand in the case of a joint filing.
Qualified overtime compensation is defined as what's paid to an
individual under section seven of the Federal State Fair Labor
State Standards Act fls A. And then you've got your
(33:01):
phase outs as well over there, and another temporary deduction
is a deduction for individuals that have attained the age
of sixty five before the end of the tax year.
The deduction amount is six thousand per individual. The senior
deduction begins phase out once it's over seventy five thousand
(33:23):
or one hundred and fifty thousand period. Finally, joint and
again it's phased out after twenty twenty five to twenty
twenty eight. So if you're a senior, that's technically no
tax on Social Security, no tax, and then no tax
on overtime and no tax on tips. Remember this phase
out after twenty twenty eight. Maybe they'll come back and
(33:48):
make it permanent. Truckers, business owners, the bill was chalked
full of things to help you business.
Speaker 2 (33:57):
Now.
Speaker 4 (33:57):
I hope you get on your CV radio. I hope
you maybe you got on the phones and text message
your friends, and I hope a lot of you went
over to Tax Talk for You and hit that as
one of your favorites, or go over to the Facebook
page truck tax Tools Facebook page, Taxation Solutions, tax Relief
Facebook page, or you know again, tax Talk for You
(34:18):
and tax Talk for You, and that's the number four,
and the letter you dot com Tax Talk the number four,
and then you just the letter you dot com and
you can hear this, and then you can go and
get our podcasts and tell people, hey, we talked about
what kind of savings we've got for business owners and truckers.
(34:41):
They expanded the qualified Business Income deduction and made it
permanent the current twenty percent rate increases the deduction limit
phase in range from fifty to seventy five for none
joint returns and a one hundred to one hundred and fifty.
In addition, the act introduces a new inflation adjusted minimum
(35:05):
deduction for taxpayers who have at least one thousand of
qualified business income from one or more active trades or
businesses in which the taxpayer materially participates. Hey, if you're
an over the road trucker, you're participating in your business.
If you've got QBI, you then have a minimum of
(35:29):
four hundred dollars you're going to be able to take
or being in business. Now, you also, in this bill
permanently extended the additional first year depreciation deduction, and the
allowance has now been increased to one hundred percent for
property acquired or placed in service on or after January nineteenth,
(35:53):
twenty twenty five. Now, if you've bought your truck January tenth,
put it in service in January before January nineteenth, that's
what you don't get the one hundred percent deduction. You've
fallen under the old bonus depreciation rules. But if you
didn't put it in service until after then, then you
can possibly take bonus appreciation. Now, I also warn you
(36:17):
don't count on one hundred percent depreciation because sometimes that
isn't the best benefit for me. A lot of times
I hear from people that told me, you know, hey,
I talking to somebody else and they took a hundred
percent depreciation they paid zero tax. If you paid zero tax,
then you possibly wasted depreciation that was on income that
(36:38):
was taxed at ten percent or lower. And maybe your
business is going to be such that you could use
more deductions in the future, save yourself more money in
the future than what you're going to save today. Got
to do some analysis out there. Don't fall for the
trap of your tax person trying to make themselves look
(36:59):
good by giving you a large refund at a cost
of future refunds or future lower tax rates with use
of appreciation. Same with Section one seventy nine Expensive the
One Big Beautiful Bill increase the maximum amount a taxpayer
may expense under Code Section one seventy nine. The two
point five million Hey, I'm glad to see they increase
(37:21):
this deduction, but I'm going to tell you what you're
buying a two point five million dollars truck, tractor and trailer.
You're never going to make it in the trucking business. Now,
if you decided you're going into the trucking business and
you have getting a fleet of trucks, then yes, we
could possibly use Section one seventy nine to appreciate the
(37:44):
maximum two point five million. Now, it's reduced by the
amount by which the cost of qualifying profit property exceeds
four million. So if you're buying four million worth of
trucks or more, then you're going to be reducing that
two point one five million dollars down. The two point
five and the four million are going to be adjusted
for inflation for tax years beginning after twenty twenty five.
(38:09):
This rule applies to anything purchased and put in service
after December thirty one four, so this year. So those
are a couple of really nice things that are out there.
You as a trucker are also going to be able
to deduct for dums. Now, for diums and everything. What
(38:31):
you've got to look at is nights away from home
on the road. Per diems right now are at eighty dollars,
maybe inflation adjusted later this year. Last year we got
a huge inflation adjustment that took place October first, so
you had to make sure you were tracking the difference
between your days in the beginning of the year through
(38:53):
October first, and then October first to the end of
the year, and then you've got the inflation adjusted out
for the last three months in the lower amount sixty
nine dollars in the first part of the year, and
then eighty percent was deductible. So it was a real
nice adjustment. We'll see if they're going to do the
(39:14):
adjustment this year. It took them a few years to
do it before. But again, you've got to have a
tax home. You've got to have something that you're caring
for and taking care of paying for. Maybe it's fully
paid off and you're paying just to maintain it, whatever
the case may be, you've got a home. And then
therefore you know when you're out on the road those
(39:36):
nights away from home, you'll be able to take the deduction. Now,
remember the first day you leave you get half a day,
and day you come home you get a half a day,
but everything in between is a full day. So if
you're reporting to us that I was on the road
four hundred and twenty five days last year, the first
thing we're going to tell you, is there only three
(39:57):
hundred and sixty five days in a year. Second thing
we're going to tell that means you never returned home,
and therefore you don't get the per diems and therefore
you take actual expenses.
Speaker 2 (40:09):
That's it.
Speaker 4 (40:10):
So realistically, every trucker I know returns home to spend
some time with family. If you're traveling in your truck
and you have no home, you're considered a tax turtle
and therefore the pre deem out there. Vince asked a
question about per diems, does that include if you are
renting or do you have to own. You can be
(40:30):
renting an apartment that works, You can be renting a
home that works, You can own a home, own a kindo.
Those things work. As a matter of fact, if you've
got a home or apartment or whatever, there's some advantages
that you can actually lease the place, your home or
(40:53):
your apartment to your business for up to fourteen days
and got a lot of qualifications you can do on it.
But it could be tax free income or expense for
your business out there. Alex with his question, is with
the tax changing all the time, can you really plan
(41:13):
for future taxes? Yes? No, maybe what you're planning and
when we are planning is we are looking at what
the permanent tax code is, and then we plan around
that tax code to begin with. We also look when
we're planning around, what are the temporary things in tax
code and how do you use these items to best
(41:37):
impact you personally on your individual taxes or if you're
running a business like we do with Trucker tax tools
and working with truckers out there, we help them plan
to save the most money for their business and then
via that we're saving as much money for them personally.
(42:00):
One thing I could say about tax planning is tax
planning is adaptive for adapting. Here you're out every year,
we're looking at, you know, net income. What things can
our owners of our businesses do that would help their
bottom line. Now bottom line is both before and after
(42:23):
tax bottom line, so you know, maybe it's putting more
money away for retirement. Maybe it's if you've got employees
offering a four to h one K program that helps
save taxes for both employer and the employee based on
what's being put away. If you are a sole owner,
maybe it's putting a solo four oh one K in place,
(42:47):
or a simplified employee pension plan. If you've got a
high deductible HS health plan, maybe it's putting money into
an HSA and maximizing the tax deduction there. Maybe it's
finding a way to put dependent care plans in place
that help you or your employees across the board. These
(43:10):
are the things that you do in tax planning and
how to save money for you and I as a
business owner and then as an individual. So tax planning
you have a lot of variables. Now, if you're an
owner operator, I'm going to tell you the best thing
to do right now is pick up the phone and
(43:30):
call the Trucker Tax Tools and then go to Trucker
Tax Tools dot com. Put in your information, we'll call you,
we'll get you set up. We'll talk about your bookkeeping, taxes,
what we do to save you money and make your
life running or smoothly. But again, you know it starts
with going to Trucker Tax Tools dot com. Hey, I'm
(43:51):
running out of time and I've been long winded. Make
sure each week what you do is you come here
to tax Talk for you dot com, follow us there
or follow us on Facebook. Never miss an episode, whether
it's our podcast iHeart wherever you listen podcast look us
up at Tax Talk for You, but be here every
Monday at ten am Eastern time, right here on W
(44:13):
four CY Radio. Thank you having God bless, glorious and
an awesome week. See you next week.
Speaker 3 (44:21):
Are you an individual or business that wants to understand
taxes and how they affect you? Are you looking for
specific tax advice for self employed business owners and truckers.
Are you behind on taxes and your bookkeeping? Are you
dealing with dirs and ready to have some relief? Then
(44:42):
you need Tax Talk for You, hosted by tax and
trucker expert Barry g. Fouer Ea Kenyan ten am the
Eastern Time every Monday, right here on W four CY
Radio and Talk for TV. Don't forget to check this
and past episodes at tax Talk for You dot com.
(45:02):
See you next week at w fur c Y dot
com
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