Mastering BizTax: Interest, Rent & Taxes | EPISODE 7 | Borderless Accountants

This episode of the US Business Tax Preparation Course from the Borderless Accountants dives deep into crucial business deductions. We're moving beyond the basics to cover the complex rules for deducting interest, rent ,and various taxes. Learn the critical difference between simple tax preparation and high-value tax strategy, with real-world examples from figures like Elon Musk and an analysis of how the wealthy navigate the tax code. We'll also explore advanced topics like the $10,000 SALT limitation and the Pass-Through Entity (PTE) tax workaround. This session is packed with practical examples, sample problems , and valuable tech tips. Chapters: 0:00:05 Welcome & Community Info 0:01:03 Tech Tip of the Day 0:01:50 Tech Tip 1: F12 for Mobile View 0:02:48 Tech Tip 2: Windows + Z for Split Screen 0:03:05Tech Tip 3: Ctrl + Backspace to delete words 0:06:37 Start of Lecture: Deductible Interest Expense 0:07:29 Tax Strategy: How Elon Musk Uses Debt & Stock Options 0:11:10 Tax Strategy: How the Rich Use Tax Laws (Trump Example) 0:13:23 The Value of a Tax Strategist vs. a Preparer 0:16:11 Why Tax Planning Should Be a Year-Round Service 0:23:02 Types of Deductible Interest (Prepayment, Investment) 0:24:51 Investment Interest & Using Other People's Money (OPM) 0:29:35 Points, Loan Origination Fees & Capitalized Interest 0:30:18 Non-Deductible Interest (Income Tax) 0:30:29 Allocation of Loan Proceeds (How the funds are used) 0:34:44 Business Interest Deduction Limitation (Sec 163(j)) 0:36:55 Sample Problem 1: Calculating Business Interest Deduction 0:42:12 Sample Problem 2: Prepaid Interest (Cash Basis) 0:46:18 New Topic: Deductible Rent Expense 0:46:47 Prepaid Rent & Costs of Acquiring a Lease 0:48:19 Sample Problem 3: Prepaid Rent (Wilma Smith) 0:51:23 Sample Problem 4: Lease Acquisition Costs (Laura) 0:55:37 New Topic: Deductible Taxes 0:55:49 Sales Tax & Occupational Licenses 0:58:04 Real Estate Taxes & Local Benefit Assessments 0:59:47 Federal Income Taxes (NEVER a Business Deduction) 1:01:30 State & Local Taxes (SALT) vs. Sales Tax Deduction 1:03:07 SALT Limitation & the PTE Tax Workaround 1:06:21 FICA & Self-Employment Tax Deduction 1:07:00 Excise Taxes 1:10:01 Real Estate Taxes, Escrow & Form 1098 (Mortgage) 1:13:28 Sample Problem 5: Identifying Deductible Taxes 1:16:56 Sample Problem 6: Real Estate Tax Calculation (Mr. Stone) 1:22:52 The Importance of Using Tax Workpapers 1:25:40 Conclusion & Wrap-up