September 17, 2025 • 37 mins
You want the truth about the One Big Beautiful Bill. Not headlines. Not wishful thinking. The real impact on your money and your business. That is what we cover today.
Morgan Anderson joins me to break down what changes now, what phases in next, and where the media is getting it wrong. We hit the mess around “no tax on tips” and why it is not the free pass people think it is. We talk expiring credits, retroactive tweaks, and why Q4 tax planning beats “see you in March” every single time.
If you own an S corp or LLC, pay attention. We talk practical realities for business owners, from what deductions still pass the laugh test to new wrinkles you have not heard about. We also dig into common mistakes with DIY tax software and why first-time accuracy is going to be shaky after a major code shift.
We close with a September checklist you can run this week. W-2s, use the IRS withholding calculator. Business owners, sit down with your CPA or EA and your advisor. Adjust estimates. Map Roth conversions, HSAs, 529s, and risk management moves that help you get ahead of what is coming.
Watch the full episode on YouTube: https://youtu.be/yp7ziDcCg0o
As always we ask you to comment, DM, whatever it takes to have a conversation to help you take the next step in your journey, reach out on any platform!
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DISCLOSURE: Awards and rankings by third parties are not indicative of future performance or client investment success. Past performance does not guarantee future results. All investment strategies carry profit/loss potential and cannot eliminate investment risks. Information discussed may not reflect current positions/recommendations. While believed accurate, Black Mammoth does not guarantee information accuracy. This broadcast is not a solicitation for securities transactions or personalized investment advice. Tax/estate planning information is general - consult professionals for specific situations. Full disclosures at www.blackmammoth.com.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Stoy Hall (00:22):
Well then it's time.
It's that time of the yearagain, tax planning and the one
big beautiful bill is, uh, athorn in some people's sides,
better for others and ultimatelypretty sure the media's getting
some of this wrong of what youguys are reading and what is
true.
So today obviously we have ourtax expert here, Morgan
(00:45):
Anderson.
So you've seen her before.
We'll dive into more.
But she's part of the collectiveand getting this conversation
about the one big beautifulbill, which is so hard to say
for me.
That is going into this andfiguring out what's really going
on, and we're gonna hit a highlevel.
If you guys do have morequestions, let us know.
We'll get a right back on andanswer those directly.
(01:07):
But let's, uh, let's take timeto go over the overview.
So Morgan, welcome back.
Welcome on, welcome part of thecollective, all of
Morgan Anderson (01:16):
Yes, it's an honor for all of it, just a
blanket.
Stoy Hall (01:20):
Just a blanket statement.
See, we always, it's a vibething.
It's a vibe thing.
So yes, it's, let's do a quickbrief overview of the importance
of Q4 tax planning.
Obviously business owners, thisis more directed towards you.
Mm-hmm.
But let's do a quick overview ofwhy the importance of Q4 tax
planning is so important, andthen we'll, we'll kind of do an
overview of the, of the billitself.
(01:41):
So can you explain to everyonewhy tax planning specifically
now-ish is vitally important tonot only the end of this year,
but for.
You know, the, the, the, the taxseason that everyone hates.
Morgan Anderson (01:53):
Yeah.
The people that are at thebiggest disadvantage, especially
business owners, are the oneswho contact their CPA or EA on
March 1st of next year and say,here's a box of receipts.
Tell me, tell me what theoutcome is and I don't wanna
owe, well, at that point you'retalking about historical data.
It's already, we're already pastthe time where you could make
(02:16):
any type of pivots with yourfinancial management to minimize
the tax consequence, and that'sreally the name of the game as a
business owner, you know.
You hear about all of these bigCEOs and owners of of multi
corporations, and peoplecomplain about them not paying
(02:36):
taxes.
Well, they have a team of taxprofessionals who watch every
move they make to strategize andminimize the tax consequence.
It's not that they don't paytax, it's just they shift it in
different ways where it becomesa business expense instead of a
personal.
So that's what you wanna bedoing right now is getting with
(02:57):
your tax professional andsaying, okay, here's what we
look like so far this year.
What pivot do we need to make orpivots do we need to make to
minimize my tax consequence asof December 31st of this year?
And you can, you can make somany changes and moves right
now, even if it's just fundingmore money into your firm.
(03:20):
Okay.
Something simple like that isgoing to save you a lot of money
when it comes to that tax billyou owe related to the income
you earned this year
Stoy Hall (03:29):
and the 1230 one's a deadline.
Yeah, it's the end of the yeareverybody.
But like even if you came to meon December 15th and we're like,
Hey, I need a star solo K or a401k and all these things, like
that's not enough time.
Right, and that's why it'simportant not only from the tax
perspective, but for your, yourCFP or your advisor, like for us
to do our jobs too.
(03:50):
We need to get involved and beinvolved from now, right?
Because that deadline comes upquick and once really the
calendar changes, there's veryminimal.
That any of us can do from a, atax planning perspective.
So get into it, get into it now,but why is this year going to be
different?
And I don't just mean this yearbecause of this bill, but every
(04:11):
time we have a tax code change,it's important that that
something changes this year.
So why right year and what aresome things that people need to
look at from this Bill'sperspective that affect them in
2025 tax year?
Um, and we'll get to whataffects them in 2026.
Morgan Anderson (04:28):
Yeah.
So first and foremost, all ofthese green energy credits that
people have been banking on,those are all expiring.
There's a multitude of them thatare expiring in September of
this year, and then one'sexpiring next year.
If people are thinking aboutbuying a new, a new vehicle, a
(04:49):
used vehicle, and it's electric,you're not gonna get the benefit
that you would've gotten a yearago.
You know, there's all thesechanges with, they say no tax on
right?
But it's not really.
It's not that simple.
It's not that black and white,but there are different things
that have happened throughoutthe year that this bill
addresses retroactively thatwill impact your tax consequence
(05:12):
at the end of the year,especially this year, because we
have this mid-year change wherethings go back and and can
count.
Effective January one.
And you may be first andforemost, that is a, is a
factor.
But then if you're looking atcertain things where you are
counting on taking energycredits or, or credits for other
(05:33):
financial moves that have nowbeen expired because of this
bill, you may need to pivot withyour strategies for first
quarter next year.
So especially this year, witheverything that has changed, you
need to get with your financialadvisor and your, your
accountant, your CPA.
As soon as you can.
Stoy Hall (05:53):
Oh, absolutely.
Alright, so what society andmedia are saying a little, uh, a
little bit of, is this true?
Is it false in your opinion?
So first one,
Morgan Anderson (06:05):
yes,
Stoy Hall (06:06):
this one kills me and I love how this is the first
one.
Why don't you just write offeverything?
Can't we just write offeverything?
You know, my clothes, myhaircut, you know, my kids'
bike.
Uh, my pool.
What do you say when you saythat and you hear that of like,
yeah, I could just write offeverything as a business owner.
Morgan Anderson (06:25):
Oh my gosh.
So do you want to have the IRSlooking up your skirt for the
next 10 years?
If so, go ahead, try it.
You're not gonna win thatbattle.
Sorry to be so blunt, but.
Anytime the IRS looks at whatyou report financially on your
tax return, you have to rememberthat it has to pass, pass a
(06:46):
laugh test, as we call it.
It needs to be reasonable.
I've seen, seen some taxstrategies touted on social
media about well pay yourchildren through your business
and then it's not taxable tothem if you keep it below a
certain limit.
Well, the problem is if you'retrying to pay your 3-year-old
(07:07):
under payroll, like, come on,you've gotta have it.
Make sense?
Make it make sense.
If you have a business whereyou're cleaning pools, okay.
You can get, get away withsupplies, equipment relative to
your cleaning pool equipment.
But if you're also trying tosay, well, then I need three big
(07:30):
screen TVs in my office and Ineed to rent an office space for
4,000 square feet and I have noemployees.
But then I go out to, I takeclients out to dinner once a
week, you know?
It starts smelling bad and, andthat's what I would say to
business owners is make sure itmakes sense.
(07:53):
Yes, there are some gray areaswhere you can.
Have a little bit of liberty to,if you're going out to dinner
with friends and you're talkingto them about your email
campaign and saying, wow, it'snot hitting, can I get your
input on this?
That is a business expense.
If you're going out with yourfriends for happy hour and
(08:14):
you're just celebrating a bigfootball game win or whatever,
that's not gonna be a business,a business expense that you can
write off.
So make sure it just, if youlook at it from an outside
perspective, it makes sense foryou, for your type, the type of
business that you're in, thetype of client outreach that you
do.
(08:35):
Just have it make sense
Stoy Hall (08:37):
and be able to back it up, right?
I mean, at the end of the day,like you gotta answer to that
question.
I truly hope your EA or your CPAor someone is, is telling you,
Hey, that that's dumb.
Let's not do that.
If you are doing it yourself atthe end of the day, you better
be able to back it up andactually provide a reasoning
besides, I thought it was a goodidea.
Um, this next one we're gonnaskip over pretty fast because
(08:59):
we've already answered it.
If you didn't and you're justusing this section and listening
to it, you gotta go back to theintro.
Sorry.
But the, the, the quote is, I'llfigure it out at tax time again.
We've pounded this one.
Don't do that.
Don't wait until tax time.
Tax planning is vitallyimportant.
One thing I want to ask youthough, within that is how
(09:19):
important is it for personal, onthe personal side of things to
be doing tax planning and notwaiting until tax time?
Morgan Anderson (09:28):
Oh, it's just as important.
It really is.
You know, we all have lives thatmove pretty quick.
We have family members that getold and pass away.
We have children that are born.
We change jobs.
All of these things impact yourfinancial condition.
And if you are not in a constantcommunication with your
(09:49):
accountant, your ea, your CPA,and they don't know what's
happening in your life, theycan't give you guidance before
the end of the year.
Right.
Anytime I have a shift with myfamily.
One of the first people I callis my CPA and the second one I
call is my financial advisor.
(10:09):
And I had a, a parent pass awaytwo years ago.
First thing I did was call myCPA after grieving.
Of course I'm not a robot, but.
Um, but I called her and I said,okay, I know my mom had these
investments.
I know things are coming to me.
What do you need so you can helpme evaluate it?
(10:30):
Called my financial advisor.
Said the same thing.
The three of us actually got ona call and made a game plan.
So for, for individuals it isjust as important to, to use
foresight and to look out foryourself.
Stoy Hall (10:47):
You're so damn good.
You answered, you answered thenext quote.
And that way my CPA will justtake care of it.
And it like, because like theydon't know what they don't know.
Right?
We can, you guys cannot justmake up strategies for you and
just implement them if you don'tknow what's going on.
And again, tax time is too lateto be telling you, oh yeah, I
had a kid, we bought a new car,I inherited this.
(11:09):
Or you know, I started this.
You just can't just throw thoseout there in March.
This last one is less of aquote, but more of kind of what
we had prepped with a little bitoff air is what are some current
misinformations about the onebig, beautiful bill in the, in
the policy changes that aregoing on that you are seeing in
the media right now that aren'tas truthful and simple as
(11:32):
they're putting it out there tobe.
Morgan Anderson (11:35):
Boy, you know, for as many different size of
our political realm within theUS there's different viewpoints,
right?
And even the mainstream media,they'll share a nugget of
information, but it's not thewhole picture.
So the information we're gettingis semi true, but it's not black
and white.
(11:55):
Everything you need to knowabout each section of the OBBB
as, as they call it, O-B-B-B-A,the OB.
Can we
Stoy Hall (12:05):
just
Morgan Anderson (12:05):
say,
Stoy Hall (12:08):
comes out with these policies when you have named
them, it's easier to say,
Morgan Anderson (12:12):
man.
Right.
I know.
It's, uh, it's sad because I, Isaw a business network that
released the list for the no taxon tips.
Okay.
Let's talk about that one reallyquick.
Yeah.
Theoretically that is what theysaid this bill was going to do.
(12:33):
Okay.
No tax on tips.
You shouldn't have to pay tax onthat, which is a good, good
idea.
Honestly, it's fine, but.
There are caveats to the rulethe way it actually was
finalized in the bill whereyou're limited to how much you
can claim.
You are limited by industry ifyou can claim it or not as a
(12:57):
deductible line item.
It doesn't say, guess what it,it's absolved from paying income
tax on it, but you're stillgonna have state tax.
You're still gonna owe fica theSocial Security and Medicare on
that money.
So it's not truly no tax, right?
It's just an adjustment to, um,to how much you're taxed and on
(13:18):
what source of income.
But I was reading this articleon a business network and it was
talking about the industriesthat you can claim it.
It's like if you're in theseindustries, you can claim your
tips to not be taxed.
That was all they said.
They didn't talk about themaximum amount.
(13:38):
They didn't say that at incomelevels, your ability to have
that not be taxed gets phasedout.
They didn't say that.
They just said, guess what?
If you are a housekeeper at ahotel, you can claim no tax on
those tips.
So it was very misleading.
(13:58):
It's like, yes, they give yousome information, but just
enough to be dangerous.
Stoy Hall (14:04):
And it's like, okay, this is my conspiracy hat,
everybody.
Right?
This is not financial advice,blah, blah, blah.
All those regulation things, I'msupposed to say from when I read
this and the whole purposebehind it,'cause it does phase
out I think in five years,right?
Is a lot of these people thatget tips, they get'em in cash.
Mm-hmm.
A lot of cash tips.
Right?
And yet you're supposed to claimthat and you're supposed to do
(14:25):
all of that.
A lot of people don't.
Right.
So.
What is being forced in myopinion, is the fact that now
they're not gonna give all thisinformation.
People are gonna like, Ooh, Idon't pay taxes, so now I'll
claim it.
Now it's gonna show up.
You're gonna pay more in state,you're gonna pay fica.
And when it phases out, they'regonna come back and say, you've
already made all this in tipsbefore.
Why are you not claiming it thisyear?
(14:46):
And they're gonna go back at'em.
For me, it's just a push to getpeople taxed more while hiding
it under something like that.
And that's what I don't likeabout the overall bill is like
it's, it's secondary things anda lot of people's lives are
going to change because of it.
And a lot of it is because it,they do take cash and there's
nothing wrong with that part,but you gotta recognize that
(15:09):
that is what's gonna happen.
So conspiracy, head off.
Morgan Anderson (15:12):
Well, and you know what's so funny is I, I
made a list of some of theindustries that I didn't think
about that would get taxed orthat would get tips to begin
with, and then they said, wellhere, all these people like home
movers.
Movers.
Tailors when you go take clothesin to get tailored and fitted
(15:37):
tips to them.
I wasn't aware of that.
Locksmiths, tradesmen, likeelectricians and plumbers and I
was kinda like, okay, this ispretty far reaching.
Right.
Yeah.
Maybe I, I've been cheap mywhole life, but I've never
tipped a plumber when I've hadto call them.
Stoy Hall (15:52):
No, they cost him.
I,
Morgan Anderson (15:53):
I've never thought of that.
Stoy Hall (15:55):
Yeah.
Morgan Anderson (15:57):
Yeah.
Stoy Hall (15:58):
Interesting.
Morgan Anderson (15:59):
So it was, it was just very interesting to see
what they included in this.
I think it's, I don't think thatthere was any intention for the
conspiracy theory of Gotcha whenthese bills expire.
But here's another, you broughtup a great point.
These bills do expire.
And what I don't like aboutthis, I'm probably jumping ahead
(16:20):
on our, our conversation, butwhat I don't like about this is
some things, some parts of itwere made permanent, but a lot
of these superficial talkingpoints behind this bill expire
at the end of 28.
Well, what happens in 28?
We've got another electioncycle, so it's this like bribe
(16:42):
and I, that to me, doesn't feelgood.
Stoy Hall (16:46):
Absolutely.
And then we gotta go throughthis whole thing again.
28.
We're going through it again oneway or one.
It's
Morgan Anderson (16:51):
exhausting.
Stoy Hall (16:52):
One side or another.
We're gonna have to go throughthis all over again, but let's
get to our next segment, whichis your point of view, which
we've kind of already done alittle bit, but a little bit.
We'll, we'll, uh, we'll divemore into it.
So.
What does this bill actuallymean?
And we, I know we've been alittle negative, everybody on
it, but like mm-hmm.
We'll talk a little more aboutpositives and things, but what
does the bill actually mean forbusiness owners specifically,
(17:14):
like our S corps, our LLCs?
Um, what are some things thathave changed that you're like,
oh yeah, no, actually, like thisis gonna benefit them quite a
bit compared to years past.
Morgan Anderson (17:25):
So I think that there's some r and d tax credits
that are gonna be, that aregonna be more beneficial to
businesses, but it's researchand development, right?
That's the manufacturingtechnology corner of our
industry, and I just don't feellike most small business owners
even touch that.
(17:45):
What I do see is.
And this was another interestingpart of the, the whole bill, the
Trump account.
Mm-hmm.
Right.
Businesses can invest if, ifthere are children born to their
employees This year through 2028when this Trump account is being
(18:06):
offered, businesses can do afringe benefit to the family by
investing up to$2,500 per kidinto that, which isn't a bad way
to spend money and to benefityour employees and their
families.
I thought that was aninteresting option for
(18:26):
businesses because it's a greatexpense, right?
It benefits the family, itbenefits your employee, but I, I
thought that was a unique optionavailable.
Stoy Hall (18:36):
Yeah, I did too, for sure.
Yeah.
Um.
But I, what about, I think theother one that I saw that I know
it comes into play in 2026 waslike depreciation on a vehicle
and things like that.
What's been the biggest changefrom our current tax to 2026 for
taking depreciation upfront orover long periods of time?
Morgan Anderson (18:57):
You know what I I, the depreciation schedule, so
again, my area of focus is moreon the backend of the tax world.
So a lot of what is in the, theone big beautiful bill.
It doesn't touch what I do, butI, I love tax theory and, and
digging into these things.
I haven't even gotten to thedepreciation section yet.
(19:18):
I was telling story before wejumped on.
I've gone through five differentcontinuing education classes
just focused on the changes inthe.
B.
B and I, we haven't even gottento that section of it yet, and
I've probably invested 12, 13hours of just digging into the
bill from different areas.
(19:39):
What I found was interestingthough, was that auto loan
depreciation, the interestdeduction, and it's not for
businesses, it's just forindividuals, which I thought was
kind of crappy to do tobusinesses, right?
But.
There is a little line item thatI wanted to share because if you
bought a vehicle in 2025 and yourefinance the vehicle, you can
(20:08):
then qualify for this interestdeduction.
Even if it was purchased beforethe bill got signed.
I thought that was interesting.
But it has to be a new car.
It has to be US assembled, butyou can't increase the principal
amount of the loan.
I was like, well, what?
Okay.
It just, some of the ways thatthey tried to create talking
(20:31):
points out of it, I didn't thinkmade a whole heck of a lot of
sense.
Stoy Hall (20:36):
I agree.
Um, that one got me.
Yeah.
Morgan Anderson (20:39):
The other one for businesses that you brought
up that I thought wasinteresting was now in order to
claim charitable donations, ithas to be at least 1% of the
gross income of the business,which I was like, wow, that's a
lot of money,
Stoy Hall (20:57):
right?
Morgan Anderson (20:58):
To be able to claim it because I, I know a lot
of small business owners whosponsor baseball teams and do
donations to kids' school eventsand things like that, and it's
not a, it's not going to amountto 1% of their gross income.
So that was, that was aninteresting line item that I
didn't agree with.
Stoy Hall (21:18):
Yeah, I a hundred percent agree there.
One percent's massive.
Morgan Anderson (21:22):
Yeah,
Stoy Hall (21:22):
it's lots lot.
They're like, it's a hundredbucks.
It's not gonna hurt me.
But we gotta think about the, Iknow, you know, the billions,
right?
Like it's a massive number.
Right?
Right.
It truly is.
And I, I don't, I don't seepeople trying to take advantage
of that as much.
Mm-hmm.
Um, at that 1%.
So, uh, no, that's a lot.
Next topic, what are some commonmistakes that you see?
(21:44):
In the tax world, obviously thisis more in your world of like
mistakes and now you gotta fix'em, but what are the most
common mistakes that people makewhen it comes to their tax
situation?
Morgan Anderson (21:56):
Honestly, I think.
A lot of the mistakes I, I seeare not planning ahead.
Right.
And how that ends up surprisingpeople with bills that they,
they then can't pay.
But anytime we have a big shiftin policy like this, we're gonna
find as people are trying towrap their, their head around
the changes, they're going tocommit errors on self prepared
(22:18):
tax returns that are gonna sendexaminations all over these
cases.
Right, and people are gonna endup with accuracy related
penalties and additional taxbecause let's say somebody's
doing their own tax return onTurboTax, and they're like, no,
no, no.
I donated a thousand dollars.
(22:39):
And then it, it doesn't stopthat claim from going through,
and then it hits examination.
They're like, no, with the taxchange, you can't claim that
much money because you didn'thit the minimum threshold.
I think we're gonna see some ofthose hiccups in the tax
software for the first year.
I think the other thing thatwe're gonna see is that people
are going to miss out ondeductions that they could have
(23:02):
claimed had they worked with aCPA or an enrolled agent.
There are a lot of smallbusiness owners who say, well,
I'll just use TurboTax and it'llguide me.
It will ask me all the questionsand it will give me a good tax
return.
Or I'll go to h and r block,right?
And I'll take them, my businessp and ls, my balance sheet, and
(23:25):
my bank statements, and they'regonna give me a great.
They're gonna do a great job onmy tax return.
And the hard part is thatanytime you have these tax bills
that go through, that changesthe scope of our basic taxation
practice.
A lot of those.
Tax softwares and the h and rblocks in Jackson Hewitts for
(23:48):
the higher end stuff.
They're not going to be asknowledgeable, and I'm sorry, I
hope I don't offend people, butyou, you really get what you pay
for when you're dealing with atax advisor.
When you're dealing with a CPAor your ea, you really do get
somebody.
Who saves you money by puttingin better strategies on your
(24:11):
behalf than just going throughTurboTax and following along
with their prompts, because itdoesn't know what you don't tell
it.
Stoy Hall (24:20):
And let's be real with what you had talked about
of how many hours you've put in.
Everyone is putting in anabsolute ton of hours.
Mm-hmm.
And so in order for a softwareto even get it.
You still have someone has tofigure it out right.
In order to make sure it'srunning operationally correct.
And when we do changes it itthings go through the cr, the
cracks and it kind of is what itis, right?
(24:41):
Even a lot of us out there, CPAsand EAs, I don't say US'cause
I'm not one of either of those.
There's gonna be things that aremissed as well.
And I know just from our CFPconversations with some of these
changes, I've been corrected andI've corrected someone already
as well with what the actualcode does for us in our
planning.
And it's like when there'smassive changes, people, you're
(25:03):
not going to have the a hundredpercent accuracy.
It's just not possible for usbecause there's a hundred
thousand million pages andthere's different ways to
misconstrue things.
And ultimately, at the end ofthe day, what everyone's looking
for is a loophole, right?
They're looking for what theycan do, what is best for them in
their situation.
Well, when you get handed a newplaybook, it takes a while to
(25:24):
understand how to work thoseplays.
So everyone listening.
It's gonna be a little messy.
Breathe one, hire somebody, two,breathe.
Everyone will try to make, makedo with what they have.
So the last segment we go intois actionable steps.
Now this is the takeaway thatpeople can use right now.
Besides we give them a tonalready.
(25:45):
Take'em from right now in thisconversation to move forward.
So first one is, it is the monthof September.
Mm-hmm.
What is something that they needto check this month right now in
order to start their taxplanning or start to even think
about tax planning?
Morgan Anderson (26:01):
I would do, if you're W2.
Employee do a payroll taxcalculator.
The IRS has it on their website.
It'll walk you through enteringyour gross wages, your taxes
paid so far.
Just make sure that at the endof the year it calculates that
you don't owe anything.
If you will adjust thewithholding through the rest of
(26:24):
the year to compensate, youdon't want to amass a lot of
money due back to you by theIRS.
But you certainly don't wannaowe them anything for small
businesses.
Get with your bookkeeper, yourCPA, your ea.
Go through your numbers now.
See what's gonna show as flowthrough income to you.
(26:45):
Make sure you have enoughestimated tax payments paid, and
if you're an S corp, make surethat you've had enough
withholding from your payroll.
Make pivots and adjustments asneeded as appropriate because
again, you don't wanna overpaythe IRS and have them owe you
money.
Them holding your money is notgood, but you certainly don't
(27:07):
wanna be on the other end whereyou have a big bill that you
just aren't prepared for.
The other thing I would do iswith all of these tax changes
coming up, the ones that are inplace now, the ones that are
still shifting a little bit, youwant to use forward thinking
skills.
You wanna get with your advisorsand say, okay, we're in a
(27:31):
position right now where we'reactually gonna have more people
pass away than people are beingborn.
And whenever that happens, youcan see down the road that taxes
are gonna actually end upincreasing the amount of tax
that you're gonna have to pay atthe state and federal level.
(27:51):
So start using your advisorsnow.
Look at long-term care policies,annuities, life insurance, HSAs,
Roth conversions, 5 29 plans.
There are some new changeshappening with opportunity zone
investments, which is like wayout there, but there's some,
some benefits that shifted withthe one big, beautiful bill that
(28:14):
are very enticing for that typeof investment.
But start planning now.
Don't wait five years.
Don't wait 10 years.
Just be conservative with theway you manage your money and,
and what you see coming down thethe road at you.
Stoy Hall (28:31):
Take the politics out of it as much as possible.
I know, trust me, this is awhole thing in our country, but
when, when a bill comes out, itis what is law.
It is what we need to follow anddo our best to make it best for
you.
Don't rely on anything changinganytime soon with any politician
being changed hands, right?
(28:51):
You need to attack this thingfor what it is and what is imp
in front of us and even betteris be proactive for what is
coming down the pipe like youhad just mentioned.
So, uh, really great take there.
What are some key deadlines thatpeople need to mark down or
remember starting here inSeptember, all the way through
April 15th?
Morgan Anderson (29:10):
Yeah, so September 15th is the third
estimated tax payment forself-employed individuals.
So make sure you tend to that.
You know, that's the big onethat I could say right now.
If you have, if you haveemployees, you know you've got
your 9 41 that's due at the endof October for third quarter,
but that's really it.
Just look at these.
(29:32):
These expiration dates on thecredits and make sure that
you're planning accordingly.
I'm trying to think.
There was, there's somequestions on how tips would be
reported on the, the U twos fromemployers.
If you're an employer and youhave employees who fall into
this tip op.
(29:53):
Because it's retro to January1st.
There's all these, theseconversations happening in the
tax world about nobody evenknows how the heck we're
supposed to report them on the Wtwos.
All the software's being shiftedright now to accommodate, and
then it's like, well, how do weaccount for what happened four
months ago?
We have no idea what they got.
(30:14):
We have no idea how much shouldbe reported.
Just stick.
Stick close to your CPAs andyour EAs, your bookkeeper.
Have them monitor the situationif you are not, and make sure
you're very clear on what theinstructions will be as we get
closer to the end of the year.
Stoy Hall (30:30):
Now, I think we've beat a dead horse of telling
people they need to hiresomeone.
I would love to have a countergoing of how many times we,
however, ah.
There is an issue within the,the private sector as well with
taxes.
Right.
There are a lot of accountantsthat are, they have wait lists.
They aren't taking on newclients.
Mm-hmm.
It's not the easiest thing tofind one, but when you do and
(30:51):
people are out there trying tofind one, one, you better be
doing that now, by the way.
Like, get to it.
What are like three questionsthat.
These people should be askingtheir tax pro while they're
interviewing them to make surethat they fit for who they are
and what they have going on.
That way they can, at leastbesides the vibe check,'cause
you have to do that first.
Yes, absolutely.
(31:12):
At least understand that hey,this person knows what they're
doing and can actually help me,my situation.
So what are three, threequestions they should be asking
these uh, tax pros?
Morgan Anderson (31:20):
That's a great question.
First thing I would say is calland make an appointment with
them.
See how long it takes you to geton the phone with them.
We're, we're in a funky time ofthe year right now, September
15th is the extension deadlinefor the corp, and then October
15th is the extension deadlinefor the and everything else.
(31:42):
So right now, all of these CPAsand EAs are in this kind of
turmoil cycle.
See how long it takes to get ona phone call with them.
If it takes more than a week, goto the next one on your list.
Even though they're busy rightnow, they should still be able
to make time to speak with youor have somebody on their staff
(32:05):
get with you.
You know, as long as it'ssomebody that's worked with them
for a really long time, youshould be be able to get a good
feel from them.
The second thing I would ask isgive them a summary of your tax
picture, right?
I am married, I've got two kids.
I have my own business.
My husband is a W2 employee.
We have some investments, wehave a trust, we have caves.
(32:28):
Are you familiar?
Do you have a lot of clientsthat are in that type of
situation?
Because what you don't wanna dois have somebody cutting their
teeth on your case if they'venever handled your type of
situation before.
Experience is key because youwant somebody who is going to
take everything that they'velearned, not only in their
education, but through workingwith other people that are in
(32:51):
similar situations to you.
If you have a manufacturingbusiness, you do not wanna go to
a CPA.
Who only handles doctors anddentists, that's not gonna be a
good fit.
They'll have no perspective.
They'll have no directexperience handling a situation
similar to yours.
And the third thing I would dois look them up online.
(33:14):
Anybody can complain aboutanybody online, right?
I don't know anybody who isself-employed that hasn't had
some nasty.
Comment left about them online,but you can throw out the worst
one.
Throw out the one that's thebiggest cheerleader and get a
good feel for what people sayabout them.
Double check their credentialsas well.
(33:34):
If they're a CPA.
Check with the CPA board for thestate.
If they're an ea, check with thenational Registry with the IRS.
Just make sure they're in goodstanding.
Stoy Hall (33:46):
All great points and at the end of the day, make sure
you like them.
Yeah, right.
You gotta like them.
I mean, yes, you're knee deep ineverything with them, so make
sure it all, all comes alongwith that.
Morgan Anderson (33:58):
Yeah.
It's one of the more, I'm sosorry.
It's one of the more intimaterelationships that your
professional relationship thatyou will have in your life, them
and your financial advisor.
Those two people know more aboutyou, you're in a very vulnerable
position because you're likefully transparent and saying,
here's all of my money.
(34:20):
Here's what we look like, andhere are all of my bad habits.
And I mean, you are, for lack ofa better word, naked with these
people.
Right?
So you have to make sure thatthe relationship feels good.
Stoy Hall (34:34):
Absolutely.
Because you see a lot.
Not gonna lie, we see a lot.
We hear a lot, and we know alot.
Morgan Anderson (34:39):
Yeah.
Stoy Hall (34:40):
Yep.
Well, I appreciate your time andI know like everybody, this,
this bill conversation is, is amassive thing.
So we hope some of this helps alittle bit.
Obviously come ask us morequestions as we get into 2026.
We'll have more like specificstrategies and ideas because
some of this doesn't come intoplay until next year and some of
it is still getting figured out.
(35:01):
So while we're all trying tofigure this out and learn, just
breathe a little bit.
Make sure you're getting withyour accountant.
If you don't have one, go getone at the other side of it.
Keep listening to us.
Stay tuned.
We'll have more coming out.
Morgan, appreciate you.
You have a great rest of yourweek and we'll get you back on
here shortly.
Morgan Anderson (35:19):
Sounds great, Stoy.
Thanks so much.
Black Mammoth (35:34):
The proceeding program was sponsored by Black
Mammoth.
Any awards, rankings, orrecognition by unaffiliated
third parties or publicationsare in no way indicative of the
advisors future performance orany individual client's
investment success.
No award ranking or recognitionshould be construed as a current
or past endorsement of blackmammoth.
(35:55):
Information regarding specificawards, rankings, or
recognitions is available on theBlack Mammoth website, www.black
mammoth.com.
All investment strategies havethe potential for profit or loss
Investment strategies such asasset allocation,
diversification, or rebalancingdo not assure or guarantee
(36:16):
better performance and cannoteliminate the risk of investment
losses.
There are no guarantees that aportfolio employing these or any
other strategy will outperform aportfolio that does not engage
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This broadcast should not beconstrued by any client or
prospective client as asolicitation to affect or
attempt to affect transactionsand securities or the rendering
(36:39):
of personalized investmentadvice due to various factors
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The information discussed inthis broadcast may no longer be
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While information presented isbelieved to be factual and up to
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should not be regarded as acomplete analysis of the
(37:01):
subjects discussed.
The tax and the estate planninginformation discussed is general
in nature and is provided forinformational purposes only, and
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Listeners should consult anattorney or tax professional
regarding their specific legalor tax situation.
Past performance is notindicative of future results.
Well then it's time.
It's that time of the yearagain, tax planning and the one
big beautiful bill is, uh, athorn in some people's sides,
better for others and ultimatelypretty sure the media's getting
some of this wrong of what youguys are reading and what is
true.
So today obviously we have ourtax expert here, Morgan
(00:45):
Anderson.
So you've seen her before.
We'll dive into more.
But she's part of the collectiveand getting this conversation
about the one big beautifulbill, which is so hard to say
for me.
That is going into this andfiguring out what's really going
on, and we're gonna hit a highlevel.
If you guys do have morequestions, let us know.
We'll get a right back on andanswer those directly.
(01:07):
But let's, uh, let's take timeto go over the overview.
So Morgan, welcome back.
Welcome on, welcome part of thecollective, all of
Morgan Anderson (01:16):
Yes, it's an honor for all of it, just a
blanket.
Stoy Hall (01:20):
Just a blanket statement.
See, we always, it's a vibething.
It's a vibe thing.
So yes, it's, let's do a quickbrief overview of the importance
of Q4 tax planning.
Obviously business owners, thisis more directed towards you.
Mm-hmm.
But let's do a quick overview ofwhy the importance of Q4 tax
planning is so important, andthen we'll, we'll kind of do an
overview of the, of the billitself.
(01:41):
So can you explain to everyonewhy tax planning specifically
now-ish is vitally important tonot only the end of this year,
but for.
You know, the, the, the, the taxseason that everyone hates.
Morgan Anderson (01:53):
Yeah.
The people that are at thebiggest disadvantage, especially
business owners, are the oneswho contact their CPA or EA on
March 1st of next year and say,here's a box of receipts.
Tell me, tell me what theoutcome is and I don't wanna
owe, well, at that point you'retalking about historical data.
It's already, we're already pastthe time where you could make
(02:16):
any type of pivots with yourfinancial management to minimize
the tax consequence, and that'sreally the name of the game as a
business owner, you know.
You hear about all of these bigCEOs and owners of of multi
corporations, and peoplecomplain about them not paying
(02:36):
taxes.
Well, they have a team of taxprofessionals who watch every
move they make to strategize andminimize the tax consequence.
It's not that they don't paytax, it's just they shift it in
different ways where it becomesa business expense instead of a
personal.
So that's what you wanna bedoing right now is getting with
(02:57):
your tax professional andsaying, okay, here's what we
look like so far this year.
What pivot do we need to make orpivots do we need to make to
minimize my tax consequence asof December 31st of this year?
And you can, you can make somany changes and moves right
now, even if it's just fundingmore money into your firm.
(03:20):
Okay.
Something simple like that isgoing to save you a lot of money
when it comes to that tax billyou owe related to the income
you earned this year
Stoy Hall (03:29):
and the 1230 one's a deadline.
Yeah, it's the end of the yeareverybody.
But like even if you came to meon December 15th and we're like,
Hey, I need a star solo K or a401k and all these things, like
that's not enough time.
Right, and that's why it'simportant not only from the tax
perspective, but for your, yourCFP or your advisor, like for us
to do our jobs too.
(03:50):
We need to get involved and beinvolved from now, right?
Because that deadline comes upquick and once really the
calendar changes, there's veryminimal.
That any of us can do from a, atax planning perspective.
So get into it, get into it now,but why is this year going to be
different?
And I don't just mean this yearbecause of this bill, but every
(04:11):
time we have a tax code change,it's important that that
something changes this year.
So why right year and what aresome things that people need to
look at from this Bill'sperspective that affect them in
2025 tax year?
Um, and we'll get to whataffects them in 2026.
Morgan Anderson (04:28):
Yeah.
So first and foremost, all ofthese green energy credits that
people have been banking on,those are all expiring.
There's a multitude of them thatare expiring in September of
this year, and then one'sexpiring next year.
If people are thinking aboutbuying a new, a new vehicle, a
(04:49):
used vehicle, and it's electric,you're not gonna get the benefit
that you would've gotten a yearago.
You know, there's all thesechanges with, they say no tax on
right?
But it's not really.
It's not that simple.
It's not that black and white,but there are different things
that have happened throughoutthe year that this bill
addresses retroactively thatwill impact your tax consequence
(05:12):
at the end of the year,especially this year, because we
have this mid-year change wherethings go back and and can
count.
Effective January one.
And you may be first andforemost, that is a, is a
factor.
But then if you're looking atcertain things where you are
counting on taking energycredits or, or credits for other
(05:33):
financial moves that have nowbeen expired because of this
bill, you may need to pivot withyour strategies for first
quarter next year.
So especially this year, witheverything that has changed, you
need to get with your financialadvisor and your, your
accountant, your CPA.
As soon as you can.
Stoy Hall (05:53):
Oh, absolutely.
Alright, so what society andmedia are saying a little, uh, a
little bit of, is this true?
Is it false in your opinion?
So first one,
Morgan Anderson (06:05):
yes,
Stoy Hall (06:06):
this one kills me and I love how this is the first
one.
Why don't you just write offeverything?
Can't we just write offeverything?
You know, my clothes, myhaircut, you know, my kids'
bike.
Uh, my pool.
What do you say when you saythat and you hear that of like,
yeah, I could just write offeverything as a business owner.
Morgan Anderson (06:25):
Oh my gosh.
So do you want to have the IRSlooking up your skirt for the
next 10 years?
If so, go ahead, try it.
You're not gonna win thatbattle.
Sorry to be so blunt, but.
Anytime the IRS looks at whatyou report financially on your
tax return, you have to rememberthat it has to pass, pass a
(06:46):
laugh test, as we call it.
It needs to be reasonable.
I've seen, seen some taxstrategies touted on social
media about well pay yourchildren through your business
and then it's not taxable tothem if you keep it below a
certain limit.
Well, the problem is if you'retrying to pay your 3-year-old
(07:07):
under payroll, like, come on,you've gotta have it.
Make sense?
Make it make sense.
If you have a business whereyou're cleaning pools, okay.
You can get, get away withsupplies, equipment relative to
your cleaning pool equipment.
But if you're also trying tosay, well, then I need three big
(07:30):
screen TVs in my office and Ineed to rent an office space for
4,000 square feet and I have noemployees.
But then I go out to, I takeclients out to dinner once a
week, you know?
It starts smelling bad and, andthat's what I would say to
business owners is make sure itmakes sense.
(07:53):
Yes, there are some gray areaswhere you can.
Have a little bit of liberty to,if you're going out to dinner
with friends and you're talkingto them about your email
campaign and saying, wow, it'snot hitting, can I get your
input on this?
That is a business expense.
If you're going out with yourfriends for happy hour and
(08:14):
you're just celebrating a bigfootball game win or whatever,
that's not gonna be a business,a business expense that you can
write off.
So make sure it just, if youlook at it from an outside
perspective, it makes sense foryou, for your type, the type of
business that you're in, thetype of client outreach that you
do.
(08:35):
Just have it make sense
Stoy Hall (08:37):
and be able to back it up, right?
I mean, at the end of the day,like you gotta answer to that
question.
I truly hope your EA or your CPAor someone is, is telling you,
Hey, that that's dumb.
Let's not do that.
If you are doing it yourself atthe end of the day, you better
be able to back it up andactually provide a reasoning
besides, I thought it was a goodidea.
Um, this next one we're gonnaskip over pretty fast because
(08:59):
we've already answered it.
If you didn't and you're justusing this section and listening
to it, you gotta go back to theintro.
Sorry.
But the, the, the quote is, I'llfigure it out at tax time again.
We've pounded this one.
Don't do that.
Don't wait until tax time.
Tax planning is vitallyimportant.
One thing I want to ask youthough, within that is how
(09:19):
important is it for personal, onthe personal side of things to
be doing tax planning and notwaiting until tax time?
Morgan Anderson (09:28):
Oh, it's just as important.
It really is.
You know, we all have lives thatmove pretty quick.
We have family members that getold and pass away.
We have children that are born.
We change jobs.
All of these things impact yourfinancial condition.
And if you are not in a constantcommunication with your
(09:49):
accountant, your ea, your CPA,and they don't know what's
happening in your life, theycan't give you guidance before
the end of the year.
Right.
Anytime I have a shift with myfamily.
One of the first people I callis my CPA and the second one I
call is my financial advisor.
(10:09):
And I had a, a parent pass awaytwo years ago.
First thing I did was call myCPA after grieving.
Of course I'm not a robot, but.
Um, but I called her and I said,okay, I know my mom had these
investments.
I know things are coming to me.
What do you need so you can helpme evaluate it?
(10:30):
Called my financial advisor.
Said the same thing.
The three of us actually got ona call and made a game plan.
So for, for individuals it isjust as important to, to use
foresight and to look out foryourself.
Stoy Hall (10:47):
You're so damn good.
You answered, you answered thenext quote.
And that way my CPA will justtake care of it.
And it like, because like theydon't know what they don't know.
Right?
We can, you guys cannot justmake up strategies for you and
just implement them if you don'tknow what's going on.
And again, tax time is too lateto be telling you, oh yeah, I
had a kid, we bought a new car,I inherited this.
(11:09):
Or you know, I started this.
You just can't just throw thoseout there in March.
This last one is less of aquote, but more of kind of what
we had prepped with a little bitoff air is what are some current
misinformations about the onebig, beautiful bill in the, in
the policy changes that aregoing on that you are seeing in
the media right now that aren'tas truthful and simple as
(11:32):
they're putting it out there tobe.
Morgan Anderson (11:35):
Boy, you know, for as many different size of
our political realm within theUS there's different viewpoints,
right?
And even the mainstream media,they'll share a nugget of
information, but it's not thewhole picture.
So the information we're gettingis semi true, but it's not black
and white.
(11:55):
Everything you need to knowabout each section of the OBBB
as, as they call it, O-B-B-B-A,the OB.
Can we
Stoy Hall (12:05):
just
Morgan Anderson (12:05):
say,
Stoy Hall (12:08):
comes out with these policies when you have named
them, it's easier to say,
Morgan Anderson (12:12):
man.
Right.
I know.
It's, uh, it's sad because I, Isaw a business network that
released the list for the no taxon tips.
Okay.
Let's talk about that one reallyquick.
Yeah.
Theoretically that is what theysaid this bill was going to do.
(12:33):
Okay.
No tax on tips.
You shouldn't have to pay tax onthat, which is a good, good
idea.
Honestly, it's fine, but.
There are caveats to the rulethe way it actually was
finalized in the bill whereyou're limited to how much you
can claim.
You are limited by industry ifyou can claim it or not as a
(12:57):
deductible line item.
It doesn't say, guess what it,it's absolved from paying income
tax on it, but you're stillgonna have state tax.
You're still gonna owe fica theSocial Security and Medicare on
that money.
So it's not truly no tax, right?
It's just an adjustment to, um,to how much you're taxed and on
(13:18):
what source of income.
But I was reading this articleon a business network and it was
talking about the industriesthat you can claim it.
It's like if you're in theseindustries, you can claim your
tips to not be taxed.
That was all they said.
They didn't talk about themaximum amount.
(13:38):
They didn't say that at incomelevels, your ability to have
that not be taxed gets phasedout.
They didn't say that.
They just said, guess what?
If you are a housekeeper at ahotel, you can claim no tax on
those tips.
So it was very misleading.
(13:58):
It's like, yes, they give yousome information, but just
enough to be dangerous.
Stoy Hall (14:04):
And it's like, okay, this is my conspiracy hat,
everybody.
Right?
This is not financial advice,blah, blah, blah.
All those regulation things, I'msupposed to say from when I read
this and the whole purposebehind it,'cause it does phase
out I think in five years,right?
Is a lot of these people thatget tips, they get'em in cash.
Mm-hmm.
A lot of cash tips.
Right?
And yet you're supposed to claimthat and you're supposed to do
(14:25):
all of that.
A lot of people don't.
Right.
So.
What is being forced in myopinion, is the fact that now
they're not gonna give all thisinformation.
People are gonna like, Ooh, Idon't pay taxes, so now I'll
claim it.
Now it's gonna show up.
You're gonna pay more in state,you're gonna pay fica.
And when it phases out, they'regonna come back and say, you've
already made all this in tipsbefore.
Why are you not claiming it thisyear?
(14:46):
And they're gonna go back at'em.
For me, it's just a push to getpeople taxed more while hiding
it under something like that.
And that's what I don't likeabout the overall bill is like
it's, it's secondary things anda lot of people's lives are
going to change because of it.
And a lot of it is because it,they do take cash and there's
nothing wrong with that part,but you gotta recognize that
(15:09):
that is what's gonna happen.
So conspiracy, head off.
Morgan Anderson (15:12):
Well, and you know what's so funny is I, I
made a list of some of theindustries that I didn't think
about that would get taxed orthat would get tips to begin
with, and then they said, wellhere, all these people like home
movers.
Movers.
Tailors when you go take clothesin to get tailored and fitted
(15:37):
tips to them.
I wasn't aware of that.
Locksmiths, tradesmen, likeelectricians and plumbers and I
was kinda like, okay, this ispretty far reaching.
Right.
Yeah.
Maybe I, I've been cheap mywhole life, but I've never
tipped a plumber when I've hadto call them.
Stoy Hall (15:52):
No, they cost him.
I,
Morgan Anderson (15:53):
I've never thought of that.
Stoy Hall (15:55):
Yeah.
Morgan Anderson (15:57):
Yeah.
Stoy Hall (15:58):
Interesting.
Morgan Anderson (15:59):
So it was, it was just very interesting to see
what they included in this.
I think it's, I don't think thatthere was any intention for the
conspiracy theory of Gotcha whenthese bills expire.
But here's another, you broughtup a great point.
These bills do expire.
And what I don't like aboutthis, I'm probably jumping ahead
(16:20):
on our, our conversation, butwhat I don't like about this is
some things, some parts of itwere made permanent, but a lot
of these superficial talkingpoints behind this bill expire
at the end of 28.
Well, what happens in 28?
We've got another electioncycle, so it's this like bribe
(16:42):
and I, that to me, doesn't feelgood.
Stoy Hall (16:46):
Absolutely.
And then we gotta go throughthis whole thing again.
28.
We're going through it again oneway or one.
It's
Morgan Anderson (16:51):
exhausting.
Stoy Hall (16:52):
One side or another.
We're gonna have to go throughthis all over again, but let's
get to our next segment, whichis your point of view, which
we've kind of already done alittle bit, but a little bit.
We'll, we'll, uh, we'll divemore into it.
So.
What does this bill actuallymean?
And we, I know we've been alittle negative, everybody on
it, but like mm-hmm.
We'll talk a little more aboutpositives and things, but what
does the bill actually mean forbusiness owners specifically,
(17:14):
like our S corps, our LLCs?
Um, what are some things thathave changed that you're like,
oh yeah, no, actually, like thisis gonna benefit them quite a
bit compared to years past.
Morgan Anderson (17:25):
So I think that there's some r and d tax credits
that are gonna be, that aregonna be more beneficial to
businesses, but it's researchand development, right?
That's the manufacturingtechnology corner of our
industry, and I just don't feellike most small business owners
even touch that.
(17:45):
What I do see is.
And this was another interestingpart of the, the whole bill, the
Trump account.
Mm-hmm.
Right.
Businesses can invest if, ifthere are children born to their
employees This year through 2028when this Trump account is being
(18:06):
offered, businesses can do afringe benefit to the family by
investing up to$2,500 per kidinto that, which isn't a bad way
to spend money and to benefityour employees and their
families.
I thought that was aninteresting option for
(18:26):
businesses because it's a greatexpense, right?
It benefits the family, itbenefits your employee, but I, I
thought that was a unique optionavailable.
Stoy Hall (18:36):
Yeah, I did too, for sure.
Yeah.
Um.
But I, what about, I think theother one that I saw that I know
it comes into play in 2026 waslike depreciation on a vehicle
and things like that.
What's been the biggest changefrom our current tax to 2026 for
taking depreciation upfront orover long periods of time?
Morgan Anderson (18:57):
You know what I I, the depreciation schedule, so
again, my area of focus is moreon the backend of the tax world.
So a lot of what is in the, theone big beautiful bill.
It doesn't touch what I do, butI, I love tax theory and, and
digging into these things.
I haven't even gotten to thedepreciation section yet.
(19:18):
I was telling story before wejumped on.
I've gone through five differentcontinuing education classes
just focused on the changes inthe.
B.
B and I, we haven't even gottento that section of it yet, and
I've probably invested 12, 13hours of just digging into the
bill from different areas.
(19:39):
What I found was interestingthough, was that auto loan
depreciation, the interestdeduction, and it's not for
businesses, it's just forindividuals, which I thought was
kind of crappy to do tobusinesses, right?
But.
There is a little line item thatI wanted to share because if you
bought a vehicle in 2025 and yourefinance the vehicle, you can
(20:08):
then qualify for this interestdeduction.
Even if it was purchased beforethe bill got signed.
I thought that was interesting.
But it has to be a new car.
It has to be US assembled, butyou can't increase the principal
amount of the loan.
I was like, well, what?
Okay.
It just, some of the ways thatthey tried to create talking
(20:31):
points out of it, I didn't thinkmade a whole heck of a lot of
sense.
Stoy Hall (20:36):
I agree.
Um, that one got me.
Yeah.
Morgan Anderson (20:39):
The other one for businesses that you brought
up that I thought wasinteresting was now in order to
claim charitable donations, ithas to be at least 1% of the
gross income of the business,which I was like, wow, that's a
lot of money,
Stoy Hall (20:57):
right?
Morgan Anderson (20:58):
To be able to claim it because I, I know a lot
of small business owners whosponsor baseball teams and do
donations to kids' school eventsand things like that, and it's
not a, it's not going to amountto 1% of their gross income.
So that was, that was aninteresting line item that I
didn't agree with.
Stoy Hall (21:18):
Yeah, I a hundred percent agree there.
One percent's massive.
Morgan Anderson (21:22):
Yeah,
Stoy Hall (21:22):
it's lots lot.
They're like, it's a hundredbucks.
It's not gonna hurt me.
But we gotta think about the, Iknow, you know, the billions,
right?
Like it's a massive number.
Right?
Right.
It truly is.
And I, I don't, I don't seepeople trying to take advantage
of that as much.
Mm-hmm.
Um, at that 1%.
So, uh, no, that's a lot.
Next topic, what are some commonmistakes that you see?
(21:44):
In the tax world, obviously thisis more in your world of like
mistakes and now you gotta fix'em, but what are the most
common mistakes that people makewhen it comes to their tax
situation?
Morgan Anderson (21:56):
Honestly, I think.
A lot of the mistakes I, I seeare not planning ahead.
Right.
And how that ends up surprisingpeople with bills that they,
they then can't pay.
But anytime we have a big shiftin policy like this, we're gonna
find as people are trying towrap their, their head around
the changes, they're going tocommit errors on self prepared
(22:18):
tax returns that are gonna sendexaminations all over these
cases.
Right, and people are gonna endup with accuracy related
penalties and additional taxbecause let's say somebody's
doing their own tax return onTurboTax, and they're like, no,
no, no.
I donated a thousand dollars.
(22:39):
And then it, it doesn't stopthat claim from going through,
and then it hits examination.
They're like, no, with the taxchange, you can't claim that
much money because you didn'thit the minimum threshold.
I think we're gonna see some ofthose hiccups in the tax
software for the first year.
I think the other thing thatwe're gonna see is that people
are going to miss out ondeductions that they could have
(23:02):
claimed had they worked with aCPA or an enrolled agent.
There are a lot of smallbusiness owners who say, well,
I'll just use TurboTax and it'llguide me.
It will ask me all the questionsand it will give me a good tax
return.
Or I'll go to h and r block,right?
And I'll take them, my businessp and ls, my balance sheet, and
(23:25):
my bank statements, and they'regonna give me a great.
They're gonna do a great job onmy tax return.
And the hard part is thatanytime you have these tax bills
that go through, that changesthe scope of our basic taxation
practice.
A lot of those.
Tax softwares and the h and rblocks in Jackson Hewitts for
(23:48):
the higher end stuff.
They're not going to be asknowledgeable, and I'm sorry, I
hope I don't offend people, butyou, you really get what you pay
for when you're dealing with atax advisor.
When you're dealing with a CPAor your ea, you really do get
somebody.
Who saves you money by puttingin better strategies on your
(24:11):
behalf than just going throughTurboTax and following along
with their prompts, because itdoesn't know what you don't tell
it.
Stoy Hall (24:20):
And let's be real with what you had talked about
of how many hours you've put in.
Everyone is putting in anabsolute ton of hours.
Mm-hmm.
And so in order for a softwareto even get it.
You still have someone has tofigure it out right.
In order to make sure it'srunning operationally correct.
And when we do changes it itthings go through the cr, the
cracks and it kind of is what itis, right?
(24:41):
Even a lot of us out there, CPAsand EAs, I don't say US'cause
I'm not one of either of those.
There's gonna be things that aremissed as well.
And I know just from our CFPconversations with some of these
changes, I've been corrected andI've corrected someone already
as well with what the actualcode does for us in our
planning.
And it's like when there'smassive changes, people, you're
(25:03):
not going to have the a hundredpercent accuracy.
It's just not possible for usbecause there's a hundred
thousand million pages andthere's different ways to
misconstrue things.
And ultimately, at the end ofthe day, what everyone's looking
for is a loophole, right?
They're looking for what theycan do, what is best for them in
their situation.
Well, when you get handed a newplaybook, it takes a while to
(25:24):
understand how to work thoseplays.
So everyone listening.
It's gonna be a little messy.
Breathe one, hire somebody, two,breathe.
Everyone will try to make, makedo with what they have.
So the last segment we go intois actionable steps.
Now this is the takeaway thatpeople can use right now.
Besides we give them a tonalready.
(25:45):
Take'em from right now in thisconversation to move forward.
So first one is, it is the monthof September.
Mm-hmm.
What is something that they needto check this month right now in
order to start their taxplanning or start to even think
about tax planning?
Morgan Anderson (26:01):
I would do, if you're W2.
Employee do a payroll taxcalculator.
The IRS has it on their website.
It'll walk you through enteringyour gross wages, your taxes
paid so far.
Just make sure that at the endof the year it calculates that
you don't owe anything.
If you will adjust thewithholding through the rest of
(26:24):
the year to compensate, youdon't want to amass a lot of
money due back to you by theIRS.
But you certainly don't wannaowe them anything for small
businesses.
Get with your bookkeeper, yourCPA, your ea.
Go through your numbers now.
See what's gonna show as flowthrough income to you.
(26:45):
Make sure you have enoughestimated tax payments paid, and
if you're an S corp, make surethat you've had enough
withholding from your payroll.
Make pivots and adjustments asneeded as appropriate because
again, you don't wanna overpaythe IRS and have them owe you
money.
Them holding your money is notgood, but you certainly don't
(27:07):
wanna be on the other end whereyou have a big bill that you
just aren't prepared for.
The other thing I would do iswith all of these tax changes
coming up, the ones that are inplace now, the ones that are
still shifting a little bit, youwant to use forward thinking
skills.
You wanna get with your advisorsand say, okay, we're in a
(27:31):
position right now where we'reactually gonna have more people
pass away than people are beingborn.
And whenever that happens, youcan see down the road that taxes
are gonna actually end upincreasing the amount of tax
that you're gonna have to pay atthe state and federal level.
(27:51):
So start using your advisorsnow.
Look at long-term care policies,annuities, life insurance, HSAs,
Roth conversions, 5 29 plans.
There are some new changeshappening with opportunity zone
investments, which is like wayout there, but there's some,
some benefits that shifted withthe one big, beautiful bill that
(28:14):
are very enticing for that typeof investment.
But start planning now.
Don't wait five years.
Don't wait 10 years.
Just be conservative with theway you manage your money and,
and what you see coming down thethe road at you.
Stoy Hall (28:31):
Take the politics out of it as much as possible.
I know, trust me, this is awhole thing in our country, but
when, when a bill comes out, itis what is law.
It is what we need to follow anddo our best to make it best for
you.
Don't rely on anything changinganytime soon with any politician
being changed hands, right?
(28:51):
You need to attack this thingfor what it is and what is imp
in front of us and even betteris be proactive for what is
coming down the pipe like youhad just mentioned.
So, uh, really great take there.
What are some key deadlines thatpeople need to mark down or
remember starting here inSeptember, all the way through
April 15th?
Morgan Anderson (29:10):
Yeah, so September 15th is the third
estimated tax payment forself-employed individuals.
So make sure you tend to that.
You know, that's the big onethat I could say right now.
If you have, if you haveemployees, you know you've got
your 9 41 that's due at the endof October for third quarter,
but that's really it.
Just look at these.
(29:32):
These expiration dates on thecredits and make sure that
you're planning accordingly.
I'm trying to think.
There was, there's somequestions on how tips would be
reported on the, the U twos fromemployers.
If you're an employer and youhave employees who fall into
this tip op.
(29:53):
Because it's retro to January1st.
There's all these, theseconversations happening in the
tax world about nobody evenknows how the heck we're
supposed to report them on the Wtwos.
All the software's being shiftedright now to accommodate, and
then it's like, well, how do weaccount for what happened four
months ago?
We have no idea what they got.
(30:14):
We have no idea how much shouldbe reported.
Just stick.
Stick close to your CPAs andyour EAs, your bookkeeper.
Have them monitor the situationif you are not, and make sure
you're very clear on what theinstructions will be as we get
closer to the end of the year.
Stoy Hall (30:30):
Now, I think we've beat a dead horse of telling
people they need to hiresomeone.
I would love to have a countergoing of how many times we,
however, ah.
There is an issue within the,the private sector as well with
taxes.
Right.
There are a lot of accountantsthat are, they have wait lists.
They aren't taking on newclients.
Mm-hmm.
It's not the easiest thing tofind one, but when you do and
(30:51):
people are out there trying tofind one, one, you better be
doing that now, by the way.
Like, get to it.
What are like three questionsthat.
These people should be askingtheir tax pro while they're
interviewing them to make surethat they fit for who they are
and what they have going on.
That way they can, at leastbesides the vibe check,'cause
you have to do that first.
Yes, absolutely.
(31:12):
At least understand that hey,this person knows what they're
doing and can actually help me,my situation.
So what are three, threequestions they should be asking
these uh, tax pros?
Morgan Anderson (31:20):
That's a great question.
First thing I would say is calland make an appointment with
them.
See how long it takes you to geton the phone with them.
We're, we're in a funky time ofthe year right now, September
15th is the extension deadlinefor the corp, and then October
15th is the extension deadlinefor the and everything else.
(31:42):
So right now, all of these CPAsand EAs are in this kind of
turmoil cycle.
See how long it takes to get ona phone call with them.
If it takes more than a week, goto the next one on your list.
Even though they're busy rightnow, they should still be able
to make time to speak with youor have somebody on their staff
(32:05):
get with you.
You know, as long as it'ssomebody that's worked with them
for a really long time, youshould be be able to get a good
feel from them.
The second thing I would ask isgive them a summary of your tax
picture, right?
I am married, I've got two kids.
I have my own business.
My husband is a W2 employee.
We have some investments, wehave a trust, we have caves.
(32:28):
Are you familiar?
Do you have a lot of clientsthat are in that type of
situation?
Because what you don't wanna dois have somebody cutting their
teeth on your case if they'venever handled your type of
situation before.
Experience is key because youwant somebody who is going to
take everything that they'velearned, not only in their
education, but through workingwith other people that are in
(32:51):
similar situations to you.
If you have a manufacturingbusiness, you do not wanna go to
a CPA.
Who only handles doctors anddentists, that's not gonna be a
good fit.
They'll have no perspective.
They'll have no directexperience handling a situation
similar to yours.
And the third thing I would dois look them up online.
(33:14):
Anybody can complain aboutanybody online, right?
I don't know anybody who isself-employed that hasn't had
some nasty.
Comment left about them online,but you can throw out the worst
one.
Throw out the one that's thebiggest cheerleader and get a
good feel for what people sayabout them.
Double check their credentialsas well.
(33:34):
If they're a CPA.
Check with the CPA board for thestate.
If they're an ea, check with thenational Registry with the IRS.
Just make sure they're in goodstanding.
Stoy Hall (33:46):
All great points and at the end of the day, make sure
you like them.
Yeah, right.
You gotta like them.
I mean, yes, you're knee deep ineverything with them, so make
sure it all, all comes alongwith that.
Morgan Anderson (33:58):
Yeah.
It's one of the more, I'm sosorry.
It's one of the more intimaterelationships that your
professional relationship thatyou will have in your life, them
and your financial advisor.
Those two people know more aboutyou, you're in a very vulnerable
position because you're likefully transparent and saying,
here's all of my money.
(34:20):
Here's what we look like, andhere are all of my bad habits.
And I mean, you are, for lack ofa better word, naked with these
people.
Right?
So you have to make sure thatthe relationship feels good.
Stoy Hall (34:34):
Absolutely.
Because you see a lot.
Not gonna lie, we see a lot.
We hear a lot, and we know alot.
Morgan Anderson (34:39):
Yeah.
Stoy Hall (34:40):
Yep.
Well, I appreciate your time andI know like everybody, this,
this bill conversation is, is amassive thing.
So we hope some of this helps alittle bit.
Obviously come ask us morequestions as we get into 2026.
We'll have more like specificstrategies and ideas because
some of this doesn't come intoplay until next year and some of
it is still getting figured out.
(35:01):
So while we're all trying tofigure this out and learn, just
breathe a little bit.
Make sure you're getting withyour accountant.
If you don't have one, go getone at the other side of it.
Keep listening to us.
Stay tuned.
We'll have more coming out.
Morgan, appreciate you.
You have a great rest of yourweek and we'll get you back on
here shortly.
Morgan Anderson (35:19):
Sounds great, Stoy.
Thanks so much.
Black Mammoth (35:34):
The proceeding program was sponsored by Black
Mammoth.
Any awards, rankings, orrecognition by unaffiliated
third parties or publicationsare in no way indicative of the
advisors future performance orany individual client's
investment success.
No award ranking or recognitionshould be construed as a current
or past endorsement of blackmammoth.
(35:55):
Information regarding specificawards, rankings, or
recognitions is available on theBlack Mammoth website, www.black
mammoth.com.
All investment strategies havethe potential for profit or loss
Investment strategies such asasset allocation,
diversification, or rebalancingdo not assure or guarantee
(36:16):
better performance and cannoteliminate the risk of investment
losses.
There are no guarantees that aportfolio employing these or any
other strategy will outperform aportfolio that does not engage
in such strategies.
This broadcast should not beconstrued by any client or
prospective client as asolicitation to affect or
attempt to affect transactionsand securities or the rendering
(36:39):
of personalized investmentadvice due to various factors
including changing marketconditions.
The information discussed inthis broadcast may no longer be
reflective of current positionsor recommendations.
While information presented isbelieved to be factual and up to
date, black mammoth, do notguarantee its accuracy and it
should not be regarded as acomplete analysis of the
(37:01):
subjects discussed.
The tax and the estate planninginformation discussed is general
in nature and is provided forinformational purposes only, and
should not be construed as legalor tax advice.
Listeners should consult anattorney or tax professional
regarding their specific legalor tax situation.
Past performance is notindicative of future results.
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