August 25, 2025 • 45 mins
Tax Talk 4 you Tax Planning for 2025 and beyond. Keep more of what you make. Minimizing taxes is essential to protecting your lifestyle, longevity, and legacy. That’s why we make proactive tax strategy an integral part of our services. Taxes can be your largest cash expense. Minimize the burden with planning IRA, SEP, 401K, HSA, Roth Conversion. Also maximize your business deductions, Trucking/Owner Operator deductions. Capital gains and offsets. Tax strategies help you keep more of you money
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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
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The topics and opinions express and the following show are
solely those of the hosts and their guests, and not
those of W FOURCY 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 explicitor 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 choosing
(00:21):
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. Fowler, Hey, welcome and man, good Monday morning.
We had a great weekend going to weather even though
it's got kind of hot, but we've got our pond
has been dug. We're just trying to get water in it,
(01:19):
and when we just need God to bless us with
a bunch of rains so we can fill the pond
with water and then fish and all that fun stuff. So,
you know, we're having a good time doing things around
the ranch, and you know, we do a lot in
ranch taxes and bookkeeping and taxes for truckers. You know,
(01:44):
we do it all out here and we have a
lot of fun doing it. And really kind of interesting
is that there's a lot of truckers out there that
also have property or ranch farm and they're doing a
little bit of both. So we kind of give them
a lot of guidance on, you know, how to run
their business, not just in the trucking business, but also
(02:06):
in the farm and ranch business and and helping people.
And that's really the goal at the end of the day,
is helping people. And you know, to that end, you know,
this show is all about tax planning twenty twenty five
and beyond. You know, we're not just looking at you know,
what are we going to do to save you money
(02:28):
in taxes, you know, here in twenty five, but we're
looking at twenty six, twenty seven and out to the
future and making things makes sense in the simplest way
so that you, as a tax payer, can limit what
you're going to pay and taxes in there are ways
(02:48):
to do it. You know, both whether you're running a
business or whether you are a W two employee, there
are things that you can can do. You know, with
twenty twenty five, we're well under the way. We're more
than halfway through the year. Can you believe it. We're
almost here to the end of August, you know, coming
up on Labor Day, so you know, it's an incredible
(03:12):
half time. Flies when you're having phone or getting old,
I don't know which one is the cause. You know,
there's a lot of questions for this year. You know,
what's going to happen global economy, what's going to happen
in the interest with interest rates, what's going to happen
in the stock market, and you know, you never know
(03:32):
what the future holds. You saw last week Friday they
talked about possibly lowering interest rates. Market went crazy. Everybody
thinks it's a great thing. If we can get these
interest rates to come back down, it's going to help
everybody prosper and markets are going to continue to run rampant.
(03:55):
But Hey, you just never know, you know, what the
Fed is going to do with these interest rates, no
matter how they talk, until they do it, it's just
what it is. You know, We're going to kind of
focus on the things that we can control, like taxes
or tax planning. You know, you can't avoid taxes altogether,
(04:17):
but we can definitely find the ways to reduce them
with some very thoughtful planning. You know, we're going to
discuss maybe seven eight smart steps you can take this
year to keep more of your money and put yourself
in a position where your savings is able to grow. So,
(04:39):
you know, this year we've got some great news. First,
irs widen the tax brackets meeting potentially lower income taxes
for many and increase the standard deduction and many savings incentives.
You know, the inflation adjustments to the tax bracket means
you and I and everybody every tax out there will
(05:01):
have more taxable income before being bumped into the next
higher bracket. So when you move from one bracket to
the other, it has increase taxes and the tax rates increase,
and then they increase the standard deduction and for twenty
twenty five and thirty thousand dollars for married couples when
you're filing jointly, that's eight hundred dollars increase. For single filers,
(05:26):
it increase by four hundred all the way up to
fifteen thousand. This means you don't have to go through
and itemize your deduction. You're going to get this thirty
thousand right off the top. Now. You know, if your
mortgage interest in, your charitable contributions, and your state and
local taxes, your medical and dental expenses, all those are
(05:48):
going to add up to more than thirty thousand dollars,
then you're going to one to itemize. Now, some of
these are limited, like your medical deductions. You know, you've
got to get over a percentage of yours are income.
But for your state and local taxes and your mortgage interests,
things like that, No, you don't have to get over that.
(06:10):
You're just trying to get over that thirty thousand dollars level. Now,
this goes to also charitable donations. You know, for the
most part, when you're looking at charitable donations, when you're
using the standard deduction, you've got to get over that
thirty thousand. Half Interest and property taxes are close or
above a thirty thousand, then you're going to be able
(06:31):
to get the terrible deduction right off as part of
itemizing those expenses. And then part of planning in this
is if you're not going to exceed the standard deduction,
you might consider lunching not just charitable donations into a
single year, but maybe paying property taxes and stuff that
(06:54):
you can control to where you can pay all your
property taxes in January and then again December, all of
the same year, and then maybe that helps you get
over the standard deduction, and then maybe your charitable contributions.
The same thing is here, we get it for twenty five,
but we do it in twenty six, and we do
(07:15):
it at the beginning and the end, and now you've
got more value out there. So you got to look
at it. You got to think about it. Got to
run the numbers and say, hey, which is the best
way of doing this. So if I'm bunching to get
to itemize deductions, it gets me over, it's going to
save me more money one year or the other. If
(07:36):
you don't bunch, or even if you did bunch and
you can't get over it, then it doesn't matter which
way to it, because you want to be able to
just sit down and look at it say hey, this
is what's going to be right. You know, you if
you're going to itemize, you can also donate appreciated assets
that have been held longer than one year to a
(07:57):
qualified public charity and deductive the market value that asset
and not pay capital gains tax. Now that kind of
donation is generally subject to a thirty percent just a
gross income limitation. Any access deductible amount can be carried
for up to five years. So there are ways of
doing this. You know. There's also what they call charitable trusts.
(08:22):
So maybe you don't want to give a bunch of
money in one year to a particular charity, but you
want to be able to spread it out. So maybe
you sold a business and you made quite a bit
of money. Maybe you receive stock options and a lot
of money, and you want to be able to take
a larger charitable contribution for twenty twenty five. You could
(08:43):
set up what is considered to be a charitable trust.
You could maximize that charitable trust and take that deduction
in the year you made that donation to this charitable trust,
and then you use that charitable trust to pass out
money every year to the charities you wanted to go to.
So you're taking advantage of putting money into this trust
(09:06):
and then and donating as you see fit. Now this trust,
once you have it, it's really nice. You can give
to the trust every year and then the trust can
give money out and therefore you know your trust is
out there staying invested in making money to make the
donation straight from the trust. And when you donate to
(09:26):
that charitable trust, then you're taking the rite off you
can manipulate. You're bunching into this trust being able to
possibly itemize your charitable deductions. We're going to take a
short break here, but when we come back, we're going
to talk about some of the higher savings incentives that
(09:48):
the new Qualified Bill has put in place that you
can use to save money or on taxes for twenty
twenty five and in the future. We'll do that right
after them.
Speaker 3 (10:00):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back
with tax talk for you. If you owe the IRS
or are going through an IRS audit, don't go at
it alone. Call Taxation Solutions Tax Relief at eight eight
(10:21):
eight nine three zero one zero one six. We are
your solution for IRS tex 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
(10:41):
the IRS walk all over you. Stop the IRS now
call eight eight eight nine three zero one zero one
six or go to Taxationsolutions dot net now for a
free no obligation consultation.
Speaker 2 (11:00):
Let's get back to tax talk for.
Speaker 3 (11:02):
You with more tax talk once again. Here's your host,
Carry G.
Speaker 2 (11:07):
Ballum. Hey, welcome back. You know talking about tax planning
twenty twenty five and beyond. Some people have run a
file of the IRS. Maybe we would say have problems
with the IRS. Oh the IRS. Taxation Solutions tax Relief
(11:28):
has an A plus rating with the Better Business Bureau.
We can go in and do a tax analysis for
you and analyze why the IRS is saying you owe.
What we can do to maybe fix that problem or
maybe get rid of that debt. And it doesn't always
take what people try to sell you offers a compromises.
Sometimes it just takes getting penalties invaded, or fixing your
(11:50):
tax return or doing an audit reconsideration. If that's the reason.
It's things we can look at to help you make
a decision on what's the best way of solving this
tax problem. But it takes you know, calling US eight
eight eight nine three zero one zero one six again
eight eight eight nine three zero one zero one six
(12:13):
to get that tax relief and to save you from
the IRS or even having to deal with the IRS.
Now tax plenty. You know, there are things out there
now people most people have heard. You know. You can
contribute to your IRA and you can contribute up to
seven thousand for twenty twenty five, and then if you're
(12:35):
over fifty, you can add another thousand dollars to that.
Now you don't have to wait. You do have till
April fifteenth of twenty twenty six to make your donations
for twenty twenty five, but you don't have to wait
till then. You can actually do smaller increments every month. Now,
if you're contributing to U four to h one K,
(12:55):
you may need to sit down with the tax guy
plan see if you can and to continue to make
contributions into an IRA as well. But if you don't
have a plan, you definitely want to look at this now.
If you're self employed, maybe you're an owner operator truck driver,
maybe you're a contractor, maybe you're a consultant. Hey, maybe
(13:15):
you want to put more money away. Then you have
SOLO four oh one case, you have Sepple on self
employee pitch plan, or you can just use the standard IRA,
but it gives you options to put money aside for
your retirement. You know, we have talked to many truckers
and people that we've talked to owner operators. First thing
(13:38):
we start mentioning is, hey, we didn't you start putting
money away for retirement. Here's how you can do it.
Here's what it's going to say you tax wise. And
they're like, nobody's ever talked to me about that, or
what's your retirement plan. I'm going to drive it until
I drop. Well that's great, but that's not retirement. That's
work to start thinking about your retirement. And the younger
you are that you start thinking about retirement, the more
(13:59):
you're going to have that retirement because you're going to
be accruing this money and earning money on the money
that you set aside and have invested that will continue
to grow year after year. You know, we sat down
and done the analysis. When my son came out of
college and went to work, he's like, I can't afford
to put money into the four oh one k that
(14:20):
they have. No, you can't afford not to put money
in this four oh one k because you're never going
to miss it. It's kind of like the iris of
the government figured this out a long time ago. If
we withhold sold Security, Medicare, and federal income taxes from
your paycheck as you get paid, you will never feel it.
(14:41):
When tax rates go up. You will never notice it
because it came out of your check before you ever
received it. It's kind of like boiling a lobster, boiling
a frog. Throw a frog in out water, it's going
to leap right out and put it in cold water
and put it and started let it boil. It's going
to stay there and cook itself. O. That's what the
IRS wants you to do. U, this Department of Treasury.
(15:03):
I just want you to cook yourself. And that's the
good part about having a W two employee. You don't
have to notice it. So you want to start contributing
as young as possible and continue to have this money
invested in going And we've got a question from Walter.
Thanks for the question where should be putting this money?
(15:26):
To set it aside, I'm going to tell you where
it shit. And it's not a coffee can buried in
your backyard. It doesn't earn any interest baut there to
make any money. It's not invested in anything. There are a
lot of good funds, you know, whether you use somebody
like Fidelity or Schwab or robin Hood, they've got iras
and you can choose those investments, whether it's something like
(15:48):
American Funds. You know, there's a number of different iras
and stuff out there and gives you different investing opportunities
and stuff. So you want to look into it, maybe
get down to talking to an investment advisor. If you
need an investment advisor, Hey, you can call us. We
(16:08):
got people that are in Texas and then they've got
people all around the country that can help you. But
you can call us at eight eight eight nine three
zero one zero one six eight eight eight nine three
zero one zero one six and we can get you
referred out to some friends at amor Price that would
be more than happy to help you. And then we
got a question from tomorrow. Tomorrow is it ever too
(16:31):
late to start saving. No, it doesn't matter how and
when you start saving. But if you start young, then
you will definitely have more money in the future or retirement.
So you want to keep those things in mind. And Eugene, Hey, Eugene,
(16:53):
that's a great name. Thanks for the question here at
Eugene was my father's name, so I really love that.
If you change working companies, does the four to oh
one k transfer over? No, the four to oh one
k doesn't transfer, But you can roll the money out
of a four to oh one k into an IRA,
(17:15):
And I suggest you do that and get it out
of your company account and roll it into your own
personal IRA. And there are companies again like Fidelity and Schwab,
robin Hood and some of them will help you get
a good investment advisor and they'll help you as well.
Now some of the things you can do tax planning wise,
(17:36):
if you have an eligible medical account, you can do
a health savings account. It's got to be an HSA
qualified medical plan. So if you've got your own plan,
you can check on it. If you're working for a company,
you can check and see if it's HSA available or
if they have an HSA available there that you can
(17:59):
contribute to it. Sometimes companies will match it too. You
do have a contributional limit of forty three hundred for
yours only yourself coverage or eighty five fifty eight thousand,
five hundred and fifty dollars for family coverage. That was
an increase from twenty twenty four. It went up from
(18:20):
forty one to fifty to forty three hundred. But it
is money that's put away pre tax and then if
you are fifty five or older, you're eligible to make
catchup contributions of one thousand dollars. So maximum contributional limit
between husband and wife married filing joint would be ten thousand,
(18:44):
five hundred. Now, the beautiful part about this is you
don't have to use it to or lose it. It
can stay there and continue to grow. You can use
the investment accounts that's offered through someplace like HSA Bank
and then have that money invested where it would be
invested in whatever funds they're offering and grow based on
(19:05):
the stock market. And so those funds can can sit
out there and continue to grow, and if you don't
use it during the year, it rolls and continues to
stay with you the next year. So this could be
a very good way of saving money for future medical
bills or meeting a future deductible and you know, maximizing
(19:26):
the contribution into it and let it continue to grow
tax free as long as you pull the money out
for qualified medical expenses, then it comes out tax free.
Really nice. Some of the things you can do. You
can contribute to five twenty nine savings accounts for your kids,
your grandkids, further education for yourself. You know, put money
(19:51):
in there. Earnings and withdrawals are Federal income tax free
when used for qualified education. Now, some of those contributional
limits are governed by state laws, but they're usually quite high.
You know, you want to be able to put money
into these accounts and then let the kids use it
(20:13):
for their education, and then if they don't use it,
you can move it to somebody else's education or grandkids
or transfer it to somebody else. It's a really good
way of helping kids with their educational needs and the
money that it takes to pay for this education. So
(20:34):
those are the kind of things that you want to
be looking at possibly doing to help save money for
the future. Hey, Alex, question your question is, if I
have a four to oh one K with Fidelity, can
I move it to Swab? Yes, if you're moving it
out from the four toh one K. Let's say you
(20:54):
left a company their four oh one ks or with Fidelity,
then yes, you can move it to an individual account Wishwab.
If you are self employed and have a four to
oh one K and it's currently sitting with Schwab, you
would work with your investment guys over at Schwab and
they would roll set up a whole new four to
oh one K or your company and set it up
(21:17):
there at Schwab. Now, if you're just an employee, you
have the company and have no control, you're not going
to be able to move that company that you're working
for is four oh one K from Fidelity to Schwab.
You know, those are the complications that matter. But if
you've left the company, yes, you can move it to
an individual account over chwab. Or if you are the
owner of the business, you can make a decision where
(21:40):
your business is going to be at and where you're
going to have before oh one K. So there's a
lot of fun and a lot of things we can
do to help save you money, and you know we're
going to talk a little bit more about how you
can go back continuing save money for taxes and keeping
(22:03):
your tax bill to a minimum. And we're gonna do
that right after this.
Speaker 3 (22:08):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back
with tax.
Speaker 2 (22:16):
Talk for you.
Speaker 3 (22:19):
As an owner operator, you already spend too much time
away from your family. Trucker Tax Tools handles all your
bookkeeping and taxings. No matter what level trucker you are.
Life on the road can be taxing, but that doesn't
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(22:41):
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 to Trucker
tax Tools dot com now and let the experts keep
you truncket. Let's get back to tax talk for you
(23:06):
with more tax talk once again. Here's your host, carry
Chief ballu.
Speaker 2 (23:14):
Hey, welcome back. Yeah, several more questions in here. I
really like the questions that are coming through. Another question
from Alex is there a takeout fee or penalty to
do this move? You would have to look at your
four toh one K plan that you have with Fidelity
to see if there was some time period on it.
(23:35):
I don't usually think we see a penalty to do that.
As long as the money's not coming out to you
and it's a direct rollover, there should be no funds. Now,
if you don't do a direct rollover, you have roughly
sixty days to move the funds back into retirement account.
So if you pulled all your funds out of a
four to oh one K and we're going to roll
(23:56):
it over to an IRA, you've got to make sure
you do it the right way. Direct rollover is much
simpler because you're not going to have to prove to
the I r S that you didn't you made the timeline.
So a direct rollo would be the best thing for you.
So some other things. An idea is as we're going
(24:17):
through and working on how to save money on taxes,
so if you're in a high income bracket, you know,
maybe it's looking at your investments and different opportunities and
how you're going to grow your money, you know, seeing
rising interest rates and maybe the stock market is continuing
(24:38):
to grow. You know, maybe with the high interest rates,
you invest in some tax reboonds, or maybe you're looking
at some tax deferred investments things like that that allow
you to move this investment out into some other kind
of investment to where it's either tax deferred or helps
(25:01):
you lower your taxes. There are different kinds of investments
where you can go into real estate investments and get
a bunch of deductions this year and defer the profits
into later years when the property is sold, and then
you might be able to do something like ten thirty
one exchanges, which is really complicated. We're not going to
(25:24):
get into into this show right now, but it would
defer to maybe when your tax bracket is tie as
it is today. So there's a lot of different options
out there where you can, you know, defer long term
gains and make them at lower capital gains rates in
different future years. Now, maybe you've got a lot of
(25:44):
capital gains this year and you might consider tax loss harvesting,
you know, so you know, if you've got huge capital
gains that are coming and you've got some large capital losses,
you might sell off the stock, take the losses this year,
and it would offset the capital gains at the ordinary
(26:05):
income up to your reliable limits. So you know, if
you use don't use all the losses that you had
in the year, then you can carry it forward to
future years so you can use those losses. They're not
going to go to waste. So even if you're limited,
you have to do that. You do have to consult
(26:29):
with your tax advisor, consult with your investment advisor, and
then make sure you're looking at the wash sale rules
where you're buying and selling with certain time periods. So
those are a lot of different things that you can
be looking at and how to save yourself money on taxes.
All right, we've got a question here from Jeff. Jeff,
(26:51):
you heard the commercial about truck or tax tools. Is
there low rates for bookkeeping and how do you do bookkeeping.
One of the things I'm going to refer you back
to is that we had a great podcast about trucker
bookiep and taxes. It was a few months ago, but
if you go to tax talkforu dot com, you can
see all our podcasts there. You can probably do a
(27:13):
search for truckers and you'll be able to see Trucker Bookkeeping,
Trucker Taxes. You know we do this for small businesses. Well,
if you're looking for information on the one big beautiful Bill,
we have several shows on that, both individual and business wise,
and you can locate all of those there, or you
can go to ihire, Spotify or any of the other
(27:35):
places that you have podcasts and you can look up
tax Talk for you and it's called tax Talk the
number four the letter you dot com and be able
to find all of our shows there. But to answer
your question, if you call Trucker Tax Tools, we have
great low rates now it starts as low as twenty
(27:58):
five dollars a week. We make it simple, we make
it easy, but you do got to call us at
eight seven seven nine six six two four seven seven
against eight seven seven nine six six two four seven
seven or go to Trucker tax Tools dot com, go
to our contact page. Contact us, we'll call you, we'll
(28:18):
get things set up, we'll get things going. He there's
a couple of anti events coming up in the trucking
world that's out there. We've always been a big sponsor
of ten for d C and usually happens around October
fourth every year in Washington, d C. And they have
the trucks on the plaza. We're waiting on information coming out,
(28:41):
but that's always been a pretty cool event. More truckers
we can get out there, the bigger the event and
the bigger presence that would be felt there on the
National Mall. So what better way of doing it. If
you're going to be in the Washington, DC area around
then look up at ten four D and see the
(29:02):
events that are going on, and then jo up. The
other one that's coming up is Hey, you know, maybe
you're a W two driver, maybe you're owner operator out
there in the trucking profession. Oh IDA puts on a
great seminar called truck to Success, So look up o Ida.
Truck to Success is put on by the Old Ida Foundation,
(29:24):
and they're talking about everything from getting your authority to
running your business to I'm there talking about bookkeeping, taxes,
please purchase business entities. All these things that come into
running your trucking business and everything you ever wanted to
know and probably more crammed into three great days of
(29:48):
educational experience for somebody that's coming out and wanting to
be a owner operator in the trucking business. So it's
a nice event that's coming up into October twenty six
through twenty eighth. I believe it is. But again go
to oh Ida Foundation Truck to Success and you'll be
able to find it. And some of the things that
(30:10):
we consider and think about doing is maybe you've got
a lot of money sitting to IRA's regular IR, but
you might consider doing a WROTH conversion. And this means
transferring money in it from a traditional or pre tax
IRA to a ROTH IRA and then you pay the
(30:31):
taxes today on the pre tax and move that money
into an after tax WROTH account, which means that money's
going to grow tax deferred in the earnings on the
converted balances have the potential to be taxedly free if
the distribution is qualified the five year aging rule for
(30:51):
the accountant has been met and the account owner fifty
nine and a half or Another example exemption is that
you have disability or death. So now another bonus on
this is ross are not subject to required minimum distributions
for the life of the original owner. So if you've
(31:15):
headed a ROTH account, the distribution rules are complex as
you need to talk to a tax professional so you know,
what we want to do is definitely think about you know,
is your income low enough that you would be worth
doing this ROTH version for today. If you're in a
(31:37):
really high tax bracket, it may not be one hundred
percent worth doing, but it does sometimes get you around
those required minimum distributions that you may or may not
want to take each year once you're seventy two and
a half, so you might be able to avoid some
of the rmds that are out there, and that money
(32:00):
continue to grow tax free until you pass it down
to your errors or you start using it yourself. And
it's just a way to manipulate your tax rates as well,
especially when you're on Social Security and you're going through
all this and making decisions. We're gonna take a quick
(32:22):
break here. We're going to come back and we're talking
about a couple more things that you can do your
tax planning at twenty twenty five, and we'll do that
right after that.
Speaker 3 (32:32):
We have only scratched the surface of today's show. Please
stand by as Barry gif Fowler will be right back
with tax talk for you. As an owner operator. You
already spend too much time away from your family. Stop
spending time during paperwork. Go to Trucker tax tools dot
(32:53):
com a solution filled specifically for truckers. Trucker tax tools
dot Com makes your life run smoothly. Let's get back
to tax talk for you with more tax tock once again.
Here's your host, Barry chief Ballin.
Speaker 2 (33:13):
Hey, welcome back. I got a couple more quick questions
in here. Can you have somebody from Old Idea come
on and talk about trust success? Hey, we'll try to
get Andrew with the Foundation, or maybe we'll get Louis,
one of the executive vice presidents of Old IDA, to
come on and talk about trust success, talk about old
(33:34):
IDA as well. And the other person we might try
to get on here, we might get Fred from ten
for DC to come on and talk about ten for
DC and what the big plans that he's got or
ten four DC this year. You, as an owner operator,
can get out there now talking about owner operators, maybe
small business owners, big business owners. If you run in
(33:59):
the business, it's that time to do a check out.
Do a financial checkout for your business if you haven't
done it already. Look at your financial statements, look at
your profit and loss, look at your balance sheet, look
at the general edge of where it gives you all
the deductions that you're taking. Have you captured all your
expenses to hear a truck or tax tools. So we
(34:21):
run what we call our tax minimizer profit maximized, and
what we're looking for is every single possible tax deduction
we can take for you and your business. We don't
want to miss any expenses because part of profit maximizing
is minimizing the tax. So the more that you can
(34:42):
keep unless you give to Uncle Sam is better for you.
At Truck to Success, we talk about how to find
those expenses that are after tax and making them pre tax.
So we'll give you a small example cell phones. You're
using your cell phone a business. We've got to look
at what percentage you're using it, but it becomes a
(35:03):
pre tax deduction. So if you were in a twenty
five percent tax bracket and you were missing out on
one hundred dollars, deduction means you just paid Uncle Sam
an extra twenty five dollars on that twenty five percent
of that one hundred. Now, if you saved it and
you took it the expense, you were gonna pay it anyway,
(35:24):
it's going out of your pocket. Right, took it as
an expense for the business. You just saved yourself money. Now,
if you're self employed doing this on schedule, see, you
didn't just save the twenty five but you also saved
a fifteen point three percent Solid Security and Medicare, So
it becomes a huge saving. It seems like pennies on
the dollar. But when you're talking twenty five percent, or
(35:48):
you're adding Social Security and Medicare to it, and now
you're talking forty point three percent, would you rather have
that money in your pocket or would you rather pay
Dear old uncle Sam. I know the answer to the question.
We all would rather have that money in our pocket.
You know, we're looking at other things that we need
to do and checking all other business expenses to whether
(36:11):
you're self employed contractor self employed truck or self employed consultant,
you're looking at every single expense that you can find
to take the deductions that includes you know, when you're
an escort or you're a partnership maybe multi member reporting
on a partnership that's Form ten sixty five. Especially when
(36:35):
you're on schedule CEE and you're doing it reporting at
all self employment income, you know you're looking at how
do I maximize my let's say take home pay, but
let's say ay I keep I want to keep more
of what I make. You know, are you doing the
right thing and your retirement plans? Are you doing the
(36:55):
right thing for hsas Are you doing the right thing
to Maybe you're paying your kids a wage for doing
some work for your business. That puts that money coming
off to them into a lower tax bracket, and maybe
the kids use that money to support somewhat themselves. So
(37:17):
say you have kids playing travel baseball. The kids can
work for you pay them, and then he or she
pays the expenses for travel, baseball, travel, softball, whatever it
may be. Maybe they're into music lessons, they can take
that money and pay for music lessons. You could take
portion of that money because they've now earned a wage
(37:40):
and had income, and put it into a retirement account
that starts them off for retirement in the future. Just
imagine what a thousand dollars to day for a child
that's maybe ten or twelve years old, what that would
be worth when they're sixty five and going to retire.
As long as they never touch it. You to contribute
(38:01):
all the way until you know they're eighteen. These are
the things that you can do in tax planning that
not just helps you, but helps them in their future
because moving money out of your tax bracket that may
be in a twenty five thirty six percent tax bracket,
benefits you, benefits them and helps them for their future.
(38:25):
So that you're finding ways to save money in your business,
save money on taxes, and invest and keep as much
money as possible. That's the goal at the end of
the day. It should be everybody's goal at the end
of the day. Now, some of the things that you
might want to do. You might want to look at
(38:46):
changing your estate plan, tax plan, maybe do a living trust.
There's a lot of different things that you can do
to save money and put money aside and help move
money from your generation to the next generation. Hey, did
I say state planning is right for everybody? No, it
(39:07):
may or may not be everybody's situations. I suggest you
sit down and talk with an attorney and then decide
where you're going to go, you know from there. Got
a question here from Sandra, how do we start that?
And is there an age limit to do this before? So,
depending on what you're talking about, if we're talking about
(39:28):
IRA's and we're talking about five twenty nine hsas there's
no age limit to really start that, and you can
start putting money away for retirement sooner the better, and
it's got to be where it's going to save you
money on your taxes and benefit you doing this if
all you are, you know, if you were already of
(39:49):
age and retired and retired, there's not probably going to
be a reason do it now unless you have a
huge stake. Then there'll be some limitations on age out
there for retirement accounts. A state planning, you can do
it at anytime. So you know, we sat down with
the state planners with my parents and they were, you know,
(40:10):
in their sixties. We've done revised and new plans for
them when they were hitting their late seventies and now
when my dad passed away, then we sat down with
the state planners and talked about my mom's estate plan.
And she's well into her eighties and going strong, so
(40:31):
you know, we want to make sure there's enough money
for her to live on, you know, till the end
of her time. So we've done a lot of planning
with her and her people to make sure that you know,
the money's going to be there and not run out
and then be able to give money to her grandchildren
or great grandchildren, which was always the goal of my
(40:55):
parents is to give something of a meeting, not just cash.
But my mom has always been into McDonald's and so
to her was giving the grandkids shares a stock in
McDonald's that they have specifically set aside for that party
(41:16):
as for them personally, and that's going to go to
the grand kids. We had to revise things because they
did it through an IRA, but if the kids would
have been inherited out of the IRA, that stock would
have been had to have been sold and wouldn't have
had the same meeting. So now they have it all
(41:36):
into an after tax account. So we revised their plan
to make it work for what they were trying to
do and their goals. So sitting down with your tax advisor,
sitting down with your investment person helps you modify your
goals and make it work. Whether it's both tax planning
investment planning works out there, you know the best thing
to do is get started, start somewhere, start your plan
(42:00):
figured out, whether it's you know, itemizing standard deduction, bunching expenses,
retirement roth IRA, regular traditional IRA, charitable contributions, state planning.
All these things come in am I doing things right
in my business? My maximizing my deductions? So now leading
(42:23):
into maximizing deductions. If you're a trucker owner operator, Hey,
call Trucker tax Tools or go to Trucker tax tools
dot com. And that is eight seven seven nine six
six two four seven seven again eight seven seven nine
sixty six two four seven seven, And let's get started
working with you in maximizing your deductions and keeping more
(42:46):
money in your pocket as a owner operator business owner.
Maybe it means guiding you to being an escort or
a multi member LLC or just staying as a schedule CEE,
sole proprietor when you get to look at it, how
to maximize those seductions. And that's what we get to do.
So one last question, Hey, Kelly, we got this. Does
(43:08):
this apply to those that work paycheck to paycheck or
is this the ones who have money? Hey, you can
start putting money into iras. It could be a small
amount with every paycheck or if your company has a
four oh one K match, maximize it. Once you get
past that feeling of oh my god, desperation, this isn't
going to work that I need the money. You'll get
(43:30):
used to it, and that money can stay there and
continue to grow. And if a company is contributing to
the four oh one K and matching what you're doing,
it's going to grow even better. So do it, use it,
maximize it. Hey, don't miss an episode of tax Talk
for You. So we get to answer questions, we get
to help you buying the right ways to save money
(43:50):
on taxi. But you've got to be here every Monday
at ten am Eastern Time on W four CY Radio
and tax Talk for You dot Com Againness tax Talk
the number four, the letter you dot com, the tax
Talk for You dot Com. Go over there, like us,
follow us, go to iHeart Spotify, find all of our podcasts.
(44:14):
We have some great podcasts about one big beautiful bill,
trucking and taxes, small business taxes, small business bookkeeping, you
name it, we've got it. But you've got to be
here joining us at tax Talk for You. To go
to tax Talk for You or go to Facebook page.
Like us over there, follow us over there, but be
(44:36):
here Mondays ten am on W four CUI Radio. We'll
see you next week. Have a god bless glorious.
Speaker 3 (44:46):
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 in truckers.
Are you behind on taxes and your bookkeeping? Are you
dealing with the irs and ready to have some relief,
(45:06):
Then you need Tax Talk for You, hosted by tax
and trucker expert Barry G. Fowler EA two in ten
am Eastern Time every Monday right here on W FOURCY
Radio and Talk for TV. Don't forget to check this
and past episodes at tax TALKFORU dot com. See you
(45:27):
next week at W fourcy dot com
The topics and opinions express and the following show are
solely those of the hosts and their guests, and not
those of W FOURCY 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 explicitor 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 choosing
(00:21):
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. Fowler, Hey, welcome and man, good Monday morning.
We had a great weekend going to weather even though
it's got kind of hot, but we've got our pond
has been dug. We're just trying to get water in it,
(01:19):
and when we just need God to bless us with
a bunch of rains so we can fill the pond
with water and then fish and all that fun stuff. So,
you know, we're having a good time doing things around
the ranch, and you know, we do a lot in
ranch taxes and bookkeeping and taxes for truckers. You know,
(01:44):
we do it all out here and we have a
lot of fun doing it. And really kind of interesting
is that there's a lot of truckers out there that
also have property or ranch farm and they're doing a
little bit of both. So we kind of give them
a lot of guidance on, you know, how to run
their business, not just in the trucking business, but also
(02:06):
in the farm and ranch business and and helping people.
And that's really the goal at the end of the day,
is helping people. And you know, to that end, you know,
this show is all about tax planning twenty twenty five
and beyond. You know, we're not just looking at you know,
what are we going to do to save you money
(02:28):
in taxes, you know, here in twenty five, but we're
looking at twenty six, twenty seven and out to the
future and making things makes sense in the simplest way
so that you, as a tax payer, can limit what
you're going to pay and taxes in there are ways
(02:48):
to do it. You know, both whether you're running a
business or whether you are a W two employee, there
are things that you can can do. You know, with
twenty twenty five, we're well under the way. We're more
than halfway through the year. Can you believe it. We're
almost here to the end of August, you know, coming
up on Labor Day, so you know, it's an incredible
(03:12):
half time. Flies when you're having phone or getting old,
I don't know which one is the cause. You know,
there's a lot of questions for this year. You know,
what's going to happen global economy, what's going to happen
in the interest with interest rates, what's going to happen
in the stock market, and you know, you never know
(03:32):
what the future holds. You saw last week Friday they
talked about possibly lowering interest rates. Market went crazy. Everybody
thinks it's a great thing. If we can get these
interest rates to come back down, it's going to help
everybody prosper and markets are going to continue to run rampant.
(03:55):
But Hey, you just never know, you know, what the
Fed is going to do with these interest rates, no
matter how they talk, until they do it, it's just
what it is. You know, We're going to kind of
focus on the things that we can control, like taxes
or tax planning. You know, you can't avoid taxes altogether,
(04:17):
but we can definitely find the ways to reduce them
with some very thoughtful planning. You know, we're going to
discuss maybe seven eight smart steps you can take this
year to keep more of your money and put yourself
in a position where your savings is able to grow. So,
(04:39):
you know, this year we've got some great news. First,
irs widen the tax brackets meeting potentially lower income taxes
for many and increase the standard deduction and many savings incentives.
You know, the inflation adjustments to the tax bracket means
you and I and everybody every tax out there will
(05:01):
have more taxable income before being bumped into the next
higher bracket. So when you move from one bracket to
the other, it has increase taxes and the tax rates increase,
and then they increase the standard deduction and for twenty
twenty five and thirty thousand dollars for married couples when
you're filing jointly, that's eight hundred dollars increase. For single filers,
(05:26):
it increase by four hundred all the way up to
fifteen thousand. This means you don't have to go through
and itemize your deduction. You're going to get this thirty
thousand right off the top. Now. You know, if your
mortgage interest in, your charitable contributions, and your state and
local taxes, your medical and dental expenses, all those are
(05:48):
going to add up to more than thirty thousand dollars,
then you're going to one to itemize. Now, some of
these are limited, like your medical deductions. You know, you've
got to get over a percentage of yours are income.
But for your state and local taxes and your mortgage interests,
things like that, No, you don't have to get over that.
(06:10):
You're just trying to get over that thirty thousand dollars level. Now,
this goes to also charitable donations. You know, for the
most part, when you're looking at charitable donations, when you're
using the standard deduction, you've got to get over that
thirty thousand. Half Interest and property taxes are close or
above a thirty thousand, then you're going to be able
(06:31):
to get the terrible deduction right off as part of
itemizing those expenses. And then part of planning in this
is if you're not going to exceed the standard deduction,
you might consider lunching not just charitable donations into a
single year, but maybe paying property taxes and stuff that
(06:54):
you can control to where you can pay all your
property taxes in January and then again December, all of
the same year, and then maybe that helps you get
over the standard deduction, and then maybe your charitable contributions.
The same thing is here, we get it for twenty five,
but we do it in twenty six, and we do
(07:15):
it at the beginning and the end, and now you've
got more value out there. So you got to look
at it. You got to think about it. Got to
run the numbers and say, hey, which is the best
way of doing this. So if I'm bunching to get
to itemize deductions, it gets me over, it's going to
save me more money one year or the other. If
(07:36):
you don't bunch, or even if you did bunch and
you can't get over it, then it doesn't matter which
way to it, because you want to be able to
just sit down and look at it say hey, this
is what's going to be right. You know, you if
you're going to itemize, you can also donate appreciated assets
that have been held longer than one year to a
(07:57):
qualified public charity and deductive the market value that asset
and not pay capital gains tax. Now that kind of
donation is generally subject to a thirty percent just a
gross income limitation. Any access deductible amount can be carried
for up to five years. So there are ways of
doing this. You know. There's also what they call charitable trusts.
(08:22):
So maybe you don't want to give a bunch of
money in one year to a particular charity, but you
want to be able to spread it out. So maybe
you sold a business and you made quite a bit
of money. Maybe you receive stock options and a lot
of money, and you want to be able to take
a larger charitable contribution for twenty twenty five. You could
(08:43):
set up what is considered to be a charitable trust.
You could maximize that charitable trust and take that deduction
in the year you made that donation to this charitable trust,
and then you use that charitable trust to pass out
money every year to the charities you wanted to go to.
So you're taking advantage of putting money into this trust
(09:06):
and then and donating as you see fit. Now this trust,
once you have it, it's really nice. You can give
to the trust every year and then the trust can
give money out and therefore you know your trust is
out there staying invested in making money to make the
donation straight from the trust. And when you donate to
(09:26):
that charitable trust, then you're taking the rite off you
can manipulate. You're bunching into this trust being able to
possibly itemize your charitable deductions. We're going to take a
short break here, but when we come back, we're going
to talk about some of the higher savings incentives that
(09:48):
the new Qualified Bill has put in place that you
can use to save money or on taxes for twenty
twenty five and in the future. We'll do that right
after them.
Speaker 3 (10:00):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back
with tax talk for you. If you owe the IRS
or are going through an IRS audit, don't go at
it alone. Call Taxation Solutions Tax Relief at eight eight
(10:21):
eight nine three zero one zero one six. We are
your solution for IRS tex 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
(10:41):
the IRS walk all over you. Stop the IRS now
call eight eight eight nine three zero one zero one
six or go to Taxationsolutions dot net now for a
free no obligation consultation.
Speaker 2 (11:00):
Let's get back to tax talk for.
Speaker 3 (11:02):
You with more tax talk once again. Here's your host,
Carry G.
Speaker 2 (11:07):
Ballum. Hey, welcome back. You know talking about tax planning
twenty twenty five and beyond. Some people have run a
file of the IRS. Maybe we would say have problems
with the IRS. Oh the IRS. Taxation Solutions tax Relief
(11:28):
has an A plus rating with the Better Business Bureau.
We can go in and do a tax analysis for
you and analyze why the IRS is saying you owe.
What we can do to maybe fix that problem or
maybe get rid of that debt. And it doesn't always
take what people try to sell you offers a compromises.
Sometimes it just takes getting penalties invaded, or fixing your
(11:50):
tax return or doing an audit reconsideration. If that's the reason.
It's things we can look at to help you make
a decision on what's the best way of solving this
tax problem. But it takes you know, calling US eight
eight eight nine three zero one zero one six again
eight eight eight nine three zero one zero one six
(12:13):
to get that tax relief and to save you from
the IRS or even having to deal with the IRS.
Now tax plenty. You know, there are things out there
now people most people have heard. You know. You can
contribute to your IRA and you can contribute up to
seven thousand for twenty twenty five, and then if you're
(12:35):
over fifty, you can add another thousand dollars to that.
Now you don't have to wait. You do have till
April fifteenth of twenty twenty six to make your donations
for twenty twenty five, but you don't have to wait
till then. You can actually do smaller increments every month. Now,
if you're contributing to U four to h one K,
(12:55):
you may need to sit down with the tax guy
plan see if you can and to continue to make
contributions into an IRA as well. But if you don't
have a plan, you definitely want to look at this now.
If you're self employed, maybe you're an owner operator truck driver,
maybe you're a contractor, maybe you're a consultant. Hey, maybe
(13:15):
you want to put more money away. Then you have
SOLO four oh one case, you have Sepple on self
employee pitch plan, or you can just use the standard IRA,
but it gives you options to put money aside for
your retirement. You know, we have talked to many truckers
and people that we've talked to owner operators. First thing
(13:38):
we start mentioning is, hey, we didn't you start putting
money away for retirement. Here's how you can do it.
Here's what it's going to say you tax wise. And
they're like, nobody's ever talked to me about that, or
what's your retirement plan. I'm going to drive it until
I drop. Well that's great, but that's not retirement. That's
work to start thinking about your retirement. And the younger
you are that you start thinking about retirement, the more
(13:59):
you're going to have that retirement because you're going to
be accruing this money and earning money on the money
that you set aside and have invested that will continue
to grow year after year. You know, we sat down
and done the analysis. When my son came out of
college and went to work, he's like, I can't afford
to put money into the four oh one k that
(14:20):
they have. No, you can't afford not to put money
in this four oh one k because you're never going
to miss it. It's kind of like the iris of
the government figured this out a long time ago. If
we withhold sold Security, Medicare, and federal income taxes from
your paycheck as you get paid, you will never feel it.
(14:41):
When tax rates go up. You will never notice it
because it came out of your check before you ever
received it. It's kind of like boiling a lobster, boiling
a frog. Throw a frog in out water, it's going
to leap right out and put it in cold water
and put it and started let it boil. It's going
to stay there and cook itself. O. That's what the
IRS wants you to do. U, this Department of Treasury.
(15:03):
I just want you to cook yourself. And that's the
good part about having a W two employee. You don't
have to notice it. So you want to start contributing
as young as possible and continue to have this money
invested in going And we've got a question from Walter.
Thanks for the question where should be putting this money?
(15:26):
To set it aside, I'm going to tell you where
it shit. And it's not a coffee can buried in
your backyard. It doesn't earn any interest baut there to
make any money. It's not invested in anything. There are a
lot of good funds, you know, whether you use somebody
like Fidelity or Schwab or robin Hood, they've got iras
and you can choose those investments, whether it's something like
(15:48):
American Funds. You know, there's a number of different iras
and stuff out there and gives you different investing opportunities
and stuff. So you want to look into it, maybe
get down to talking to an investment advisor. If you
need an investment advisor, Hey, you can call us. We
(16:08):
got people that are in Texas and then they've got
people all around the country that can help you. But
you can call us at eight eight eight nine three
zero one zero one six eight eight eight nine three
zero one zero one six and we can get you
referred out to some friends at amor Price that would
be more than happy to help you. And then we
got a question from tomorrow. Tomorrow is it ever too
(16:31):
late to start saving. No, it doesn't matter how and
when you start saving. But if you start young, then
you will definitely have more money in the future or retirement.
So you want to keep those things in mind. And Eugene, Hey, Eugene,
(16:53):
that's a great name. Thanks for the question here at
Eugene was my father's name, so I really love that.
If you change working companies, does the four to oh
one k transfer over? No, the four to oh one
k doesn't transfer, But you can roll the money out
of a four to oh one k into an IRA,
(17:15):
And I suggest you do that and get it out
of your company account and roll it into your own
personal IRA. And there are companies again like Fidelity and Schwab,
robin Hood and some of them will help you get
a good investment advisor and they'll help you as well.
Now some of the things you can do tax planning wise,
(17:36):
if you have an eligible medical account, you can do
a health savings account. It's got to be an HSA
qualified medical plan. So if you've got your own plan,
you can check on it. If you're working for a company,
you can check and see if it's HSA available or
if they have an HSA available there that you can
(17:59):
contribute to it. Sometimes companies will match it too. You
do have a contributional limit of forty three hundred for
yours only yourself coverage or eighty five fifty eight thousand,
five hundred and fifty dollars for family coverage. That was
an increase from twenty twenty four. It went up from
(18:20):
forty one to fifty to forty three hundred. But it
is money that's put away pre tax and then if
you are fifty five or older, you're eligible to make
catchup contributions of one thousand dollars. So maximum contributional limit
between husband and wife married filing joint would be ten thousand,
(18:44):
five hundred. Now, the beautiful part about this is you
don't have to use it to or lose it. It
can stay there and continue to grow. You can use
the investment accounts that's offered through someplace like HSA Bank
and then have that money invested where it would be
invested in whatever funds they're offering and grow based on
(19:05):
the stock market. And so those funds can can sit
out there and continue to grow, and if you don't
use it during the year, it rolls and continues to
stay with you the next year. So this could be
a very good way of saving money for future medical
bills or meeting a future deductible and you know, maximizing
(19:26):
the contribution into it and let it continue to grow
tax free as long as you pull the money out
for qualified medical expenses, then it comes out tax free.
Really nice. Some of the things you can do. You
can contribute to five twenty nine savings accounts for your kids,
your grandkids, further education for yourself. You know, put money
(19:51):
in there. Earnings and withdrawals are Federal income tax free
when used for qualified education. Now, some of those contributional
limits are governed by state laws, but they're usually quite high.
You know, you want to be able to put money
into these accounts and then let the kids use it
(20:13):
for their education, and then if they don't use it,
you can move it to somebody else's education or grandkids
or transfer it to somebody else. It's a really good
way of helping kids with their educational needs and the
money that it takes to pay for this education. So
(20:34):
those are the kind of things that you want to
be looking at possibly doing to help save money for
the future. Hey, Alex, question your question is, if I
have a four to oh one K with Fidelity, can
I move it to Swab? Yes, if you're moving it
out from the four toh one K. Let's say you
(20:54):
left a company their four oh one ks or with Fidelity,
then yes, you can move it to an individual account Wishwab.
If you are self employed and have a four to
oh one K and it's currently sitting with Schwab, you
would work with your investment guys over at Schwab and
they would roll set up a whole new four to
oh one K or your company and set it up
(21:17):
there at Schwab. Now, if you're just an employee, you
have the company and have no control, you're not going
to be able to move that company that you're working
for is four oh one K from Fidelity to Schwab.
You know, those are the complications that matter. But if
you've left the company, yes, you can move it to
an individual account over chwab. Or if you are the
owner of the business, you can make a decision where
(21:40):
your business is going to be at and where you're
going to have before oh one K. So there's a
lot of fun and a lot of things we can
do to help save you money, and you know we're
going to talk a little bit more about how you
can go back continuing save money for taxes and keeping
(22:03):
your tax bill to a minimum. And we're gonna do
that right after this.
Speaker 3 (22:08):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back
with tax.
Speaker 2 (22:16):
Talk for you.
Speaker 3 (22:19):
As an owner operator, you already spend too much time
away from your family. Trucker Tax Tools handles all your
bookkeeping and taxings. No matter what level trucker you are.
Life on the road can be taxing, but that doesn't
mean that your wallet or time with your family should suffer.
Trucker Tax Tools makes your life run smoothly. Go to
(22:41):
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 to Trucker
tax Tools dot com now and let the experts keep
you truncket. Let's get back to tax talk for you
(23:06):
with more tax talk once again. Here's your host, carry
Chief ballu.
Speaker 2 (23:14):
Hey, welcome back. Yeah, several more questions in here. I
really like the questions that are coming through. Another question
from Alex is there a takeout fee or penalty to
do this move? You would have to look at your
four toh one K plan that you have with Fidelity
to see if there was some time period on it.
(23:35):
I don't usually think we see a penalty to do that.
As long as the money's not coming out to you
and it's a direct rollover, there should be no funds. Now,
if you don't do a direct rollover, you have roughly
sixty days to move the funds back into retirement account.
So if you pulled all your funds out of a
four to oh one K and we're going to roll
(23:56):
it over to an IRA, you've got to make sure
you do it the right way. Direct rollover is much
simpler because you're not going to have to prove to
the I r S that you didn't you made the timeline.
So a direct rollo would be the best thing for you.
So some other things. An idea is as we're going
(24:17):
through and working on how to save money on taxes,
so if you're in a high income bracket, you know,
maybe it's looking at your investments and different opportunities and
how you're going to grow your money, you know, seeing
rising interest rates and maybe the stock market is continuing
(24:38):
to grow. You know, maybe with the high interest rates,
you invest in some tax reboonds, or maybe you're looking
at some tax deferred investments things like that that allow
you to move this investment out into some other kind
of investment to where it's either tax deferred or helps
(25:01):
you lower your taxes. There are different kinds of investments
where you can go into real estate investments and get
a bunch of deductions this year and defer the profits
into later years when the property is sold, and then
you might be able to do something like ten thirty
one exchanges, which is really complicated. We're not going to
(25:24):
get into into this show right now, but it would
defer to maybe when your tax bracket is tie as
it is today. So there's a lot of different options
out there where you can, you know, defer long term
gains and make them at lower capital gains rates in
different future years. Now, maybe you've got a lot of
(25:44):
capital gains this year and you might consider tax loss harvesting,
you know, so you know, if you've got huge capital
gains that are coming and you've got some large capital losses,
you might sell off the stock, take the losses this year,
and it would offset the capital gains at the ordinary
(26:05):
income up to your reliable limits. So you know, if
you use don't use all the losses that you had
in the year, then you can carry it forward to
future years so you can use those losses. They're not
going to go to waste. So even if you're limited,
you have to do that. You do have to consult
(26:29):
with your tax advisor, consult with your investment advisor, and
then make sure you're looking at the wash sale rules
where you're buying and selling with certain time periods. So
those are a lot of different things that you can
be looking at and how to save yourself money on taxes.
All right, we've got a question here from Jeff. Jeff,
(26:51):
you heard the commercial about truck or tax tools. Is
there low rates for bookkeeping and how do you do bookkeeping.
One of the things I'm going to refer you back
to is that we had a great podcast about trucker
bookiep and taxes. It was a few months ago, but
if you go to tax talkforu dot com, you can
see all our podcasts there. You can probably do a
(27:13):
search for truckers and you'll be able to see Trucker Bookkeeping,
Trucker Taxes. You know we do this for small businesses. Well,
if you're looking for information on the one big beautiful Bill,
we have several shows on that, both individual and business wise,
and you can locate all of those there, or you
can go to ihire, Spotify or any of the other
(27:35):
places that you have podcasts and you can look up
tax Talk for you and it's called tax Talk the
number four the letter you dot com and be able
to find all of our shows there. But to answer
your question, if you call Trucker Tax Tools, we have
great low rates now it starts as low as twenty
(27:58):
five dollars a week. We make it simple, we make
it easy, but you do got to call us at
eight seven seven nine six six two four seven seven
against eight seven seven nine six six two four seven
seven or go to Trucker tax Tools dot com, go
to our contact page. Contact us, we'll call you, we'll
(28:18):
get things set up, we'll get things going. He there's
a couple of anti events coming up in the trucking
world that's out there. We've always been a big sponsor
of ten for d C and usually happens around October
fourth every year in Washington, d C. And they have
the trucks on the plaza. We're waiting on information coming out,
(28:41):
but that's always been a pretty cool event. More truckers
we can get out there, the bigger the event and
the bigger presence that would be felt there on the
National Mall. So what better way of doing it. If
you're going to be in the Washington, DC area around
then look up at ten four D and see the
(29:02):
events that are going on, and then jo up. The
other one that's coming up is Hey, you know, maybe
you're a W two driver, maybe you're owner operator out
there in the trucking profession. Oh IDA puts on a
great seminar called truck to Success, So look up o Ida.
Truck to Success is put on by the Old Ida Foundation,
(29:24):
and they're talking about everything from getting your authority to
running your business to I'm there talking about bookkeeping, taxes,
please purchase business entities. All these things that come into
running your trucking business and everything you ever wanted to
know and probably more crammed into three great days of
(29:48):
educational experience for somebody that's coming out and wanting to
be a owner operator in the trucking business. So it's
a nice event that's coming up into October twenty six
through twenty eighth. I believe it is. But again go
to oh Ida Foundation Truck to Success and you'll be
able to find it. And some of the things that
(30:10):
we consider and think about doing is maybe you've got
a lot of money sitting to IRA's regular IR, but
you might consider doing a WROTH conversion. And this means
transferring money in it from a traditional or pre tax
IRA to a ROTH IRA and then you pay the
(30:31):
taxes today on the pre tax and move that money
into an after tax WROTH account, which means that money's
going to grow tax deferred in the earnings on the
converted balances have the potential to be taxedly free if
the distribution is qualified the five year aging rule for
(30:51):
the accountant has been met and the account owner fifty
nine and a half or Another example exemption is that
you have disability or death. So now another bonus on
this is ross are not subject to required minimum distributions
for the life of the original owner. So if you've
(31:15):
headed a ROTH account, the distribution rules are complex as
you need to talk to a tax professional so you know,
what we want to do is definitely think about you know,
is your income low enough that you would be worth
doing this ROTH version for today. If you're in a
(31:37):
really high tax bracket, it may not be one hundred
percent worth doing, but it does sometimes get you around
those required minimum distributions that you may or may not
want to take each year once you're seventy two and
a half, so you might be able to avoid some
of the rmds that are out there, and that money
(32:00):
continue to grow tax free until you pass it down
to your errors or you start using it yourself. And
it's just a way to manipulate your tax rates as well,
especially when you're on Social Security and you're going through
all this and making decisions. We're gonna take a quick
(32:22):
break here. We're going to come back and we're talking
about a couple more things that you can do your
tax planning at twenty twenty five, and we'll do that
right after that.
Speaker 3 (32:32):
We have only scratched the surface of today's show. Please
stand by as Barry gif Fowler will be right back
with tax talk for you. As an owner operator. You
already spend too much time away from your family. Stop
spending time during paperwork. Go to Trucker tax tools dot
(32:53):
com a solution filled specifically for truckers. Trucker tax tools
dot Com makes your life run smoothly. Let's get back
to tax talk for you with more tax tock once again.
Here's your host, Barry chief Ballin.
Speaker 2 (33:13):
Hey, welcome back. I got a couple more quick questions
in here. Can you have somebody from Old Idea come
on and talk about trust success? Hey, we'll try to
get Andrew with the Foundation, or maybe we'll get Louis,
one of the executive vice presidents of Old IDA, to
come on and talk about trust success, talk about old
(33:34):
IDA as well. And the other person we might try
to get on here, we might get Fred from ten
for DC to come on and talk about ten for
DC and what the big plans that he's got or
ten four DC this year. You, as an owner operator,
can get out there now talking about owner operators, maybe
small business owners, big business owners. If you run in
(33:59):
the business, it's that time to do a check out.
Do a financial checkout for your business if you haven't
done it already. Look at your financial statements, look at
your profit and loss, look at your balance sheet, look
at the general edge of where it gives you all
the deductions that you're taking. Have you captured all your
expenses to hear a truck or tax tools. So we
(34:21):
run what we call our tax minimizer profit maximized, and
what we're looking for is every single possible tax deduction
we can take for you and your business. We don't
want to miss any expenses because part of profit maximizing
is minimizing the tax. So the more that you can
(34:42):
keep unless you give to Uncle Sam is better for you.
At Truck to Success, we talk about how to find
those expenses that are after tax and making them pre tax.
So we'll give you a small example cell phones. You're
using your cell phone a business. We've got to look
at what percentage you're using it, but it becomes a
(35:03):
pre tax deduction. So if you were in a twenty
five percent tax bracket and you were missing out on
one hundred dollars, deduction means you just paid Uncle Sam
an extra twenty five dollars on that twenty five percent
of that one hundred. Now, if you saved it and
you took it the expense, you were gonna pay it anyway,
(35:24):
it's going out of your pocket. Right, took it as
an expense for the business. You just saved yourself money. Now,
if you're self employed doing this on schedule, see, you
didn't just save the twenty five but you also saved
a fifteen point three percent Solid Security and Medicare, So
it becomes a huge saving. It seems like pennies on
the dollar. But when you're talking twenty five percent, or
(35:48):
you're adding Social Security and Medicare to it, and now
you're talking forty point three percent, would you rather have
that money in your pocket or would you rather pay
Dear old uncle Sam. I know the answer to the question.
We all would rather have that money in our pocket.
You know, we're looking at other things that we need
to do and checking all other business expenses to whether
(36:11):
you're self employed contractor self employed truck or self employed consultant,
you're looking at every single expense that you can find
to take the deductions that includes you know, when you're
an escort or you're a partnership maybe multi member reporting
on a partnership that's Form ten sixty five. Especially when
(36:35):
you're on schedule CEE and you're doing it reporting at
all self employment income, you know you're looking at how
do I maximize my let's say take home pay, but
let's say ay I keep I want to keep more
of what I make. You know, are you doing the
right thing and your retirement plans? Are you doing the
(36:55):
right thing for hsas Are you doing the right thing
to Maybe you're paying your kids a wage for doing
some work for your business. That puts that money coming
off to them into a lower tax bracket, and maybe
the kids use that money to support somewhat themselves. So
(37:17):
say you have kids playing travel baseball. The kids can
work for you pay them, and then he or she
pays the expenses for travel, baseball, travel, softball, whatever it
may be. Maybe they're into music lessons, they can take
that money and pay for music lessons. You could take
portion of that money because they've now earned a wage
(37:40):
and had income, and put it into a retirement account
that starts them off for retirement in the future. Just
imagine what a thousand dollars to day for a child
that's maybe ten or twelve years old, what that would
be worth when they're sixty five and going to retire.
As long as they never touch it. You to contribute
(38:01):
all the way until you know they're eighteen. These are
the things that you can do in tax planning that
not just helps you, but helps them in their future
because moving money out of your tax bracket that may
be in a twenty five thirty six percent tax bracket,
benefits you, benefits them and helps them for their future.
(38:25):
So that you're finding ways to save money in your business,
save money on taxes, and invest and keep as much
money as possible. That's the goal at the end of
the day. It should be everybody's goal at the end
of the day. Now, some of the things that you
might want to do. You might want to look at
(38:46):
changing your estate plan, tax plan, maybe do a living trust.
There's a lot of different things that you can do
to save money and put money aside and help move
money from your generation to the next generation. Hey, did
I say state planning is right for everybody? No, it
(39:07):
may or may not be everybody's situations. I suggest you
sit down and talk with an attorney and then decide
where you're going to go, you know from there. Got
a question here from Sandra, how do we start that?
And is there an age limit to do this before? So,
depending on what you're talking about, if we're talking about
(39:28):
IRA's and we're talking about five twenty nine hsas there's
no age limit to really start that, and you can
start putting money away for retirement sooner the better, and
it's got to be where it's going to save you
money on your taxes and benefit you doing this if
all you are, you know, if you were already of
(39:49):
age and retired and retired, there's not probably going to
be a reason do it now unless you have a
huge stake. Then there'll be some limitations on age out
there for retirement accounts. A state planning, you can do
it at anytime. So you know, we sat down with
the state planners with my parents and they were, you know,
(40:10):
in their sixties. We've done revised and new plans for
them when they were hitting their late seventies and now
when my dad passed away, then we sat down with
the state planners and talked about my mom's estate plan.
And she's well into her eighties and going strong, so
(40:31):
you know, we want to make sure there's enough money
for her to live on, you know, till the end
of her time. So we've done a lot of planning
with her and her people to make sure that you know,
the money's going to be there and not run out
and then be able to give money to her grandchildren
or great grandchildren, which was always the goal of my
(40:55):
parents is to give something of a meeting, not just cash.
But my mom has always been into McDonald's and so
to her was giving the grandkids shares a stock in
McDonald's that they have specifically set aside for that party
(41:16):
as for them personally, and that's going to go to
the grand kids. We had to revise things because they
did it through an IRA, but if the kids would
have been inherited out of the IRA, that stock would
have been had to have been sold and wouldn't have
had the same meeting. So now they have it all
(41:36):
into an after tax account. So we revised their plan
to make it work for what they were trying to
do and their goals. So sitting down with your tax advisor,
sitting down with your investment person helps you modify your
goals and make it work. Whether it's both tax planning
investment planning works out there, you know the best thing
to do is get started, start somewhere, start your plan
(42:00):
figured out, whether it's you know, itemizing standard deduction, bunching expenses,
retirement roth IRA, regular traditional IRA, charitable contributions, state planning.
All these things come in am I doing things right
in my business? My maximizing my deductions? So now leading
(42:23):
into maximizing deductions. If you're a trucker owner operator, Hey,
call Trucker tax Tools or go to Trucker tax tools
dot com. And that is eight seven seven nine six
six two four seven seven again eight seven seven nine
sixty six two four seven seven, And let's get started
working with you in maximizing your deductions and keeping more
(42:46):
money in your pocket as a owner operator business owner.
Maybe it means guiding you to being an escort or
a multi member LLC or just staying as a schedule CEE,
sole proprietor when you get to look at it, how
to maximize those seductions. And that's what we get to do.
So one last question, Hey, Kelly, we got this. Does
(43:08):
this apply to those that work paycheck to paycheck or
is this the ones who have money? Hey, you can
start putting money into iras. It could be a small
amount with every paycheck or if your company has a
four oh one K match, maximize it. Once you get
past that feeling of oh my god, desperation, this isn't
going to work that I need the money. You'll get
(43:30):
used to it, and that money can stay there and
continue to grow. And if a company is contributing to
the four oh one K and matching what you're doing,
it's going to grow even better. So do it, use it,
maximize it. Hey, don't miss an episode of tax Talk
for You. So we get to answer questions, we get
to help you buying the right ways to save money
(43:50):
on taxi. But you've got to be here every Monday
at ten am Eastern Time on W four CY Radio
and tax Talk for You dot Com Againness tax Talk
the number four, the letter you dot com, the tax
Talk for You dot Com. Go over there, like us,
follow us, go to iHeart Spotify, find all of our podcasts.
(44:14):
We have some great podcasts about one big beautiful bill,
trucking and taxes, small business taxes, small business bookkeeping, you
name it, we've got it. But you've got to be
here joining us at tax Talk for You. To go
to tax Talk for You or go to Facebook page.
Like us over there, follow us over there, but be
(44:36):
here Mondays ten am on W four CUI Radio. We'll
see you next week. Have a god bless glorious.
Speaker 3 (44:46):
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 in truckers.
Are you behind on taxes and your bookkeeping? Are you
dealing with the irs and ready to have some relief,
(45:06):
Then you need Tax Talk for You, hosted by tax
and trucker expert Barry G. Fowler EA two in ten
am Eastern Time every Monday right here on W FOURCY
Radio and Talk for TV. Don't forget to check this
and past episodes at tax TALKFORU dot com. See you
(45:27):
next week at W fourcy dot com
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