If you are going to talk taxes with a CPA, make sure that person is business-centric, quotable, and easy to understand. And that person is Jeff Shore, a partner at BRS CPAs based in Springfield, Missouri. We discussed PPP, the new administration, tax credits, expense classification, capital gains, and basic tax planning and management throughout the year.
Questions Addressed During the Discussion
- What changes will occur during the new administration?
- Specifically, what do you expect with depreciation?
- What do you mean by tax levers?
- Why is it a bad idea to wipe out taxable income in any given year?
- Why is the IRS getting serious about basis and basis schedules?
- Best tips for matching equipment purchases with depreciation?
- A short primer on expense classification and why it matters.
- For the last time, is HVAC real or personal property?
- Which tax credits do we tend to forget about?
During the show, Mark and Jeff addressed a creative way for taxpayers to fund this incremental tax burden based on the Treasury’s position.
Favorite Jeff Shore Quotes
Everything is income until it’s not.
Nothing is deductible until it is.
Tax planning is a daily event, but tax decisions should never override economic [business] decisions.
Tax Planning Basics
In my CFO practice, I shared my tax planning and management philosophy with Jeff. In my world, these are non-negotiables:
- Start the planning process near the end of the second quarter and continue quarterly even through December.
- During the final meeting in December, focus on what still needs to be done.
- Provide monthly financials to the tax firm with a simple schedule showing the projected tax liability each month – try to get as close as $25k (Mark’s threshold).
- When any major business decisions are being considered, pull in the tax partner immediately for feedback.
- Always prepare a full set of tax workpapers for the CPA firm by the 3rd week of January so that the business returns are done by late January or early February.
I also brought up the term ABT. Sorry, no spoilers.
Tips for Keeping Up with Taxes for non-Tax Professionals
Book Mentioned on the Show
I ask every guest about the books they like. Without hesitation, Jeff mentioned Dr. Robert Glover’s, No More Mr. Nice Guy (4.5 rating across 3.5k reviews). And yes, I’ve already purchased the Kindle version.