Live Case Study: How We Cut $20K+ Off His Tax Bill (Step by Step)
Live Case Study: How We Cut $20K+ Off His Tax Bill (Step by Step)  
Podcast: Small Business Tax Savings Podcast
Published On: Wed Sep 24 2025
Description: Send us a textWhat happens when you take a real small business owner, put them in the hot seat, and break down their tax strategy live? That’s what we’re doing in this episode.Eric runs a successful appraisal business, pays himself through an S-Corp, and last year wrote a $50,000 check to the IRS. Did he really have to? Mike digs into Eric’s setup and reveals how simple shifts could slash his tax bill. From adjusting his salary to using the Augusta Rule, hiring kids, and planning for real estate, you’ll see how the right strategy can cut thousands off your tax bill.👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/  Here's What We Discussed: (01:21) Income Breakdown$200K profit in appraisal business, break-even martial arts school, plus wife’s part-time job.(03:09) Current S Corp Salary SetupEric takes $120K-$140K salary. Mike shows how lowering it could save $8K-$9K annually.(06:25) Why Two S Corps Cost Too MuchRunning payroll twice and filing two returns is unnecessary. A smarter setup is to use one holding S Corp that owns your other businesses (but only for active businesses, not passive income like rentals.)(09:07) Retirement Planning Made SimpleHow Eric can prioritize HSA, IRA, and SIMPLE contributions to maximize tax benefits.(10:32) How to Determine a Reasonable Salary as an S CorpStart with 30-50% of profit, then back it up by tracking how many hours are spent on core tasks. Use labor statistics to assign hourly rates (this builds audit protection and ensures you’re not overpaying in payroll taxes).(17:42) Maximizing Deductions You Already HaveUse an accountable plan to capture deductions you might miss. Home office, mileage, meals, and travel can all qualify when tied to business. (21:00) The Power of a Board + Augusta RuleSet up a board, hold meetings at home, and rent your house tax-free.(26:40) Hiring Kids the Right WayWhen to use W-2 vs. 1099 and how to turn family support into deductible expenses.(36:15) Real Estate and REPS StrategyHow cost segregation and bonus depreciation could create six-figure deductions.(41:58) Core vs. Advanced Tax StrategiesWhat every business owner should implement now and what comes next as income grows.👉 U.S. Bureau of Labor Statistics (BLS) – https://www.bls.gov/oes Podcast Host:Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com🚀 Visit:  https://www.TaxSavingsPodcast.com 🚀 Check Out TaxElm: https://taxelm.com/🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/🚀 YouTube: www.TaxSavingsTV.com👋🏼 GET IN TOUCHYou can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏🙏 LEAVE A REVIEWIf you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐🎙 ABOUT THE PODCASTThe Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help entrepreneurs legally slash their tax bills. Hosted by Mike Jesowshek, CPA, this show breaks down complex tax topics into clear, no-fluff insights so you can keep more of your hard-earned money.