Podcast
How to Lower Your Tax Bill
Hosted by Terrance Hutchins · EN
The goal of this podcast is to help educate our listeners on tax strategies and offer concrete steps you can implement to improve your tax situation immediately. Each episode, we break down useful tax tips you can use to save money, no matter what your business or personal income situation is.
16episodes
Episodes
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How To Lower Your Tax Bill Episode 20
Apr 25, 202500:19:39Tap to summarizePhantom Income: Why You Might Owe Taxes on Money You Didn't Actually ReceiveIn this episode of How to Lower Your Tax Bill, host Terrence Hutchins explains one of the trickiest pitfalls in tax planning—phantom income. Terrence breaks down the critical IRS doctrines of constructive receipt and economic benefit, helping you understand why you might owe taxes even when you don’t have cash in hand.Whether you’re a business owner, investor, or receive stock-based compensation, this episode will help you spot hidden tax traps and plan ahead more effectively.Key Topics Covered:How tax law defines income—even when you haven’t been paidReal-world examples where taxes can hit harder than expectedWhat to know about depreciation, business vehicles, and partnership incomeWhy proper planning can prevent costly surprisesFeatured Tax Case: In Sproul v. Commissioner (1945), the court ruled that even though a trust payout was scheduled for future years, the taxpayer owed tax immediately due to guaranteed access. A key reminder that tax law doesn't always follow the cash.For more smart tax strategies, subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts.And remember: Keep More of What You Earn.
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How To Lower Your Tax Bill Podcast Episode 19
Apr 12, 202500:32:24Tap to summarizeWrite It Off? Not So Fast — Common Tax Deduction Myths DebunkedIn this lively and eye-opening episode of How to Lower Your Tax Bill, host Terrence Hutchins is joined again by now co-host T’mia Kelly to break down one of the most misused phrases in personal finance—"Just write it off!" From W-2 employees trying to claim home office deductions to well-meaning givers misunderstanding charitable write-offs, this episode tackles the biggest misconceptions around tax deductions.Terrence and T’mia explain why context matters, what’s actually deductible, and how blindly chasing write-offs can cost you more than it saves. This episode is a must-listen as we approach tax deadlines and gear up for smarter tax planning in the year ahead.Key Topics Covered:The origin of the “just write it off” mindset—and why it’s flawedCommon tax deduction mistakes W-2 employees make (hint: your home desk setup may not qualify)Why charitable giving (including GoFundMe and goodwill donations) often doesn’t deliver the tax benefits people expectWhen home improvements and vehicle purchases are not tax-smartWhy filing separately when married can cost you more in taxesMissed opportunities with 401(k) and HSA contributionsKey advice: don’t confuse tax planning with tax filingFeatured Tax Reminder: You can't "write off" what you don’t understand. Documentation, timing, and proper classification are key to maximizing real deductions—and avoiding disappointment at tax time.For more clarity on how to separate fact from fiction in your tax planning, subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts.And as always: Keep More of What You Earn.#KeepMoreOfWhatYouEarn
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How To Lower Your Tax Bill Episode 18
Apr 4, 202500:17:53Tap to summarizeRental Property Deductions: What Landlords Need to KnowIn this episode of How to Lower Your Tax Bill, host Terrence Hutchins dives into one of the most potent tax tools for real estate investors—rental property deductions. Whether you’re managing a single unit or a growing portfolio, Terrence breaks down what qualifies as rental income, what deductions landlords often miss, and how to avoid trouble when renting to family or below market.Key Topics Covered:What qualifies as rental income (including security deposits, lease break fees, and payments in kind)How rental income is taxed and when net investment income tax appliesWhat landlords can deduct:How to fix missed depreciation deductions from past years using Form 3115The Qualified Business Income (QBI) deduction and when to use the Safe Harbor electionWhy renting to family or charging below-market rent makes your property a not-for-profit rental, disqualifying you from valuable deductionsA key court case (Barte v. Commissioner, 1998) that shows why renting to relatives at a discount can cost you at tax timeFeatured Tax Tip: Renting out a property for 14 days or less? That income can be tax-free—but if you rent long-term to family below market, expect limited deductions and potential gift tax concerns.If you’re in the rental game, make sure you’re getting every tax break available—and avoiding traps that can cost you thousands. Subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts.And as always: Keep More of What You Earn.
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Mar 30, 202500:22:18Tap to summarizeAre You a Real Estate Dealer or Investor? Why It Matters More Than You ThinkEpisode Description: In this episode of How to Lower Your Tax Bill, Terrence Hutchins explores a key distinction that could dramatically affect how much tax you owe on your real estate income: are you a dealer or an investor? If you’re flipping houses or building a rental portfolio—or doing both—how the IRS classifies your activity can mean the difference between capital gains taxes or ordinary income plus self-employment tax.Terrence walks through how the IRS makes this classification, what the tax consequences are, and what you can do to protect your profits. He also shares a powerful seven-point filter for analyzing real estate investments and wraps up with a fascinating tax court case that could help you if the IRS challenges your classification.Key Topics Covered:The seven-part filter to assess real estate deals: risk, upside, tax treatment, control, effort, time, and feesDealer vs. investor classification and how the IRS determines your statusWhy your intent and documentation matter more than your titlesThe tax impact:Dealers pay ordinary income tax and self-employment taxInvestors pay long-term capital gains tax (if held more than a year)Dealers can’t use depreciation or 1031 exchanges—but investors canHow to avoid accidentally being classified as a dealerTips for structuring your real estate activity: use of LLCs, separate accounts, tracking time, and keeping recordsWhen using an S corporation might help flippers reduce self-employment taxFeatured Tax Case: In Byron v. Commissioner, John Byron sold 22 real estate properties over three years, netting $3.4 million. The IRS classified him as a dealer—but the court disagreed, citing his lack of active marketing, minimal involvement, and intent to hold for investment. The result? Byron paid capital gains tax instead of a much higher ordinary income tax rate.This case highlights why documentation and strategy can make or break your tax outcome.For more real estate tax tips, subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts. And as always: Keep More of What You Earn.#KeepMoreOfWhatYouEarn
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How To Lower Your tax Bill Episode 16
Mar 21, 202500:36:42Tap to summarizeTax Deductions & Credits: What You Don’t Know Could Cost YouIn this episode of How to Lower Your Tax Bill, host Terrence Hutchins is joined by T’mia Kelly to break down the difference between tax deductions and credits—and how understanding them can save you thousands. They dive into carry-forward tax benefits, the importance of reviewing last year’s tax return, and how historical tax changes (like the introduction of the standard deduction in 1944) continue to impact taxpayers today.Key Topics CoveredThe difference between tax credits (dollar-for-dollar reductions) vs. tax deductions (which lower taxable income).Common carry-forward deductions that can lower your tax bill in future years, including:Net Operating Losses (NOLs) for business owners.Capital losses from stocks and investments.Passive activity losses from rental properties.Charitable contribution carry-forwards for those who donate large sums.Business tax credits like the Work Opportunity Tax Credit (WOTC) and R&D credit—and how to leverage them.How solar panels and energy-efficient home upgrades qualify for tax credits (but don’t believe every salesperson’s pitch).The importance of reviewing last year’s tax return to avoid missing out on deductions and credits you’re entitled to.Featured Tax FactDid you know that before 1944, tax brackets were so complex that President Franklin D. Roosevelt would submit his tax return half-completed with a $15,000 check, telling the IRS to "send him an invoice" for the balance? The complexity of tax deductions at the time led to the creation of the standard deduction to simplify the process for Americans.For more expert tax strategies, subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts. And as always: Keep More of What You Earn!#KeepMoreOfWhatYouEarn
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How To Lower Your Tax Bill Episode 13
Feb 28, 2025Tap to summarizeRepairs vs. Improvements: Maximizing Your Rental Property DeductionsIn this episode of How to Lower Your Tax Bill, host Terrence Hutchins explains the critical differences between repairs and improvements for real estate investors and W-2 filers with rental properties. Understanding how the IRS classifies these expenses can have a significant impact on your tax deductions and long-term financial strategy.What You’ll Learn:Repairs vs. Improvements: Repairs (e.g., patching drywall, fixing leaks) are deductible immediately, while improvements (e.g., new roof, HVAC) must be depreciated over 27.5 years.IRS Safe Harbors:Small Taxpayer Safe Harbor – Deduct up to $10,000 or 2% of property value.Routine Maintenance Safe Harbor – Deduct recurring maintenance costs.De Minimis Safe Harbor – Deduct expenses under $2,500 per item.Partial Disposition Election: Deduct the remaining cost of replaced property components.LaPointe vs. Commissioner (1990) – A real-world case where a taxpayer incorrectly classified renovations as repairs instead of improvements, leading to disallowed deductions and increased tax liability.For more tax-saving strategies, subscribe to How to Lower Your Tax Bill on Spotify or Apple Podcasts. If you have questions, email questions@logosfg.com, and we’ll address them in a future episode. The key to tax planning is not just reducing your bill—it’s keeping more of what you earn.
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