S Corps, Gym Membership Deductions, Solo 401(k)s, and Family Hires: Listener Q&A with Mike Jesowshek CPA

Small Business Tax Savings Podcast

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Are you leaving money on the table when it comes to your business taxes? In this Q&A episode, Mike Jesowshek answers your tax questions! From S corporation salary conundrums to the surprising deductibility of gym memberships, Mike provides actionable insights that could save you thousands.
[00:00 - 07:15] S Corp Salaries and Retirement Accounts

• Can an S corporation owner take only dividends and no salary?
• How to determine a reasonable S corp salary?
• Can I start a solo 401k in my side hustle without breaking control group rules?

[07:16 - 13:30] Deductible Expenses and Hiring Family

• Is a gym membership with business offices tax-deductible?
• How to allocate costs between personal and business use?
• What are the tax implications of hiring my teen in a sole proprietorship?

[13:31 - 21:00] Solo 401(k)s and Bookkeeping

• What are the contribution options for solo 401(k)s for both spouses?
• How to structure businesses for married couples?
• Can bookkeeping be automated? What software is recommended?

[21:01 - 26:30] Accountable Plans and Cash Purchases

• Do husband-wife-owned LLCs need accountable plans?
• How to handle partnership filing in non-community property states?
• How to document and prove business purchases from Facebook Marketplace?

[26:31 - 35:00] Tax Deductions and Management Fees

• What expenses can self-employed pastors deduct?
• Should I set aside taxes based on gross revenue or profit?
• What's a reasonable fee for a family management company?

Direct Quotes:

"Don't invest something just for a tax benefit. Like they always say, ‘Don't let the tax tail wag the dog.’" - Mike Jesowshek, CPA

Resources Mentioned:

• Life Inc Retirement Services
• Xero accounting software
• QuickBooks Online

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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

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