--- title: 'How Trump''s Tax Proposals Could Affect Small Business Owners' source: 'https://youtube.com/watch?v=kkjjFDRRoaY' video_id: 'kkjjFDRRoaY' date: 2026-07-14 duration_sec: 0 --- # How Trump's Tax Proposals Could Affect Small Business Owners > Source: [How Trump's Tax Proposals Could Affect Small Business Owners](https://youtube.com/watch?v=kkjjFDRRoaY) ## Summary In this webinar, tax experts Mark J. Kohler and Matt Sorensen break down how the Trump administration's tax proposals could impact small business owners. They discuss the expiring Tax Cuts and Jobs Act provisions, including individual rates, the standard deduction, QBI deduction, bonus depreciation, and estate tax exemptions, offering strategies to maximize savings. ### Key Points - **Introduction to Tax Proposals Webinar** [00:00] — Dan Bova introduces the webinar on Trump's tax proposals for small business owners, featuring tax experts Mark Kohler and Matt Sorensen. - **Tax Cuts and Jobs Act Expiration** [01:30] — The Tax Cuts and Jobs Act (TCJA) passed nine years ago is set to expire in 2025, prompting discussions on extending or modifying its provisions. - **Individual Tax Rates** [03:00] — Individual rates are set to increase in 2026 from 37% to 39.6% unless extended. Trump promised to extend TCJA rates, keeping them at 37% max. - **Standard Deduction vs. Itemizing** [05:00] — TCJA nearly doubled the standard deduction, pushing many to use it. If not extended, the standard deduction will drop significantly, while itemized deductions may improve. - **Estate Tax Exemption** [07:00] — The estate tax exemption was raised to $13.6 million ($26M married) under TCJA. It will revert to $5 million if not extended, affecting wealthy business owners. - **QBI Deduction for Small Business** [09:00] — The Qualified Business Income (QBI) deduction allows a 20% deduction on business income. It is set to expire and needs extension to benefit small businesses. - **Bonus Depreciation** [11:00] — Bonus depreciation allowed 100% write-off on equipment, now phasing down to 60%. Extension would stimulate business investment. - **New Proposals: No Tax on Tips and Social Security** [13:00] — Trump proposed no tax on tips and Social Security income, which would require new legislation and budget scoring. - **SALT Cap and Capital Gains** [15:00] — The SALT cap ($10,000) may be removed if offset by spending cuts. Capital gains rates are expected to remain at current levels (max 20%). - **Understanding Capital Gains** [17:00] — Long-term capital gains (assets held >1 year) are taxed at lower rates than ordinary income. Short-term gains are taxed as ordinary income. ### Conclusion The webinar emphasizes that while tax policy changes are coming, small business owners should focus on what they can control—growing their business and strategically planning with a tax advisor to maximize savings. ## Transcript Hey, hey, hey, everybody. Welcome. I'm Dan Bova from entrepreneur.com. And thank you for joining us for this special webinar on how the Trump administration's tax proposals could affect small business owners like you. Now, before we get into it, I want to let you know that there are many more webinars and workshops like this on the way, thanks to our new platform, Entrepreneur Insider. You can get on the wait list right now to be among the first to access our exclusive small business community where you can network, share advice and hear from amazing guests like we have here today. So let's get to those guests. Once again, we've assembled our dynamic duo of all things taxes. We've got Mark J. Kohler. He's an author, CPA, attorney, and co-host of the podcast Refresh Your Wealth. And Matt Sorensen, author, attorney, and CEO of Directed IRA and Directed Trust Company. They'll be sharing an overview of the new tax proposals that we've been hearing about and give you strategies to help you maximize your savings. Welcome Mark and Matt. Well, thank you Dan so much and thank you to the entrepreneur team. And we want to let all of you know right out of the gate here, we're going to try to keep this as fun as possible. Yeah. Enjoyable. Yeah. And we're, since this is entrepreneur insider, we're going to give you the insider knowledge on what to expect. We are two tax nerds. If you didn't catch that in the opening there, Dan didn't say it that way, but that's one way to say we're tax nerds. But yeah, Elections do have outcomes and there is some tax policy changes coming your way and it could be very good for you as a small business owner. We're going to dive into it. Yep. And we are coming here from Phoenix central. This is our studio in Phoenix, Arizona. One of the battleground States, boy, exciting here. And we are both partners in the law firm KQS lawyers. And we actually have two podcasts. We have the mainstream business podcast and the directed IRA podcast. We want to make sure that at the end of this, you know where you can get more support, information, and the truth on what to do about your tax and legal planning, building wealth. That's our jam. That's what we do every day. All right. Now, I think before we get into it, we want to break down. We want to give you the roadmap, I should say, on the conversation. So we want to talk about individual tax policy and what we're going to be expecting and And then we're going to talk about specific business and small business, maybe some investment stuff that if you're a business owner is going to greatly affect you. Now, obviously, we're here on the entrepreneur platform. So we're going to assume most of you have a side gig, a side hustle or a main hustles business, but or even rental property is a business. We need to really keep that in mind. But all of you, first and foremost, are individuals having to file a 1040 tax return. And anything you're doing in your business flows down onto your 1040. It's like all the water of the river flows downhill onto your 1040. And we want to make a smoothie. We want to like blend all those gains and losses and write-offs and expenses, W-2s. We want to bring it together and try to get our clients the lowest possible efficiency. effective tax rate. It's not what bracket you're in, but at the end of the day, what tax you're paying divided by your taxable income. And we'll keep that as low as possible. That's our ultimate goal. One other thing before we jump into it, we want to set the tone here. This is not a pro-Trump or a bash Trump presentation. We've been tax lawyers for 20 plus years, helping clients around the country on Main Street America. We just want, we want us all to come together on a, we've been doing this for years. We've been trying to pound that drum. Main Street is amazing. It's the backbone of our country's economy is small business. And so we hope that all of you feel safe to talk about any strategy, pro or con. Let's make it safe for everybody to anybody to make a comment constantly and just build wealth and save taxes. And I don't know, just, Enjoy life. I mean, we all have an American dream. Yeah, I love that. Let's be honest though. What is the number one expense of a successful business owner? Taxes. That's your number one expense. So it's important that we talk about the tax policy. And I think the number one thing to say at the outset here is the tax cuts and job at jobs act, which passed nine years ago is set to expire in 2025. So the big thing coming down the pipeline in Congress and that Trump talked about on the campaign trail, a lot of other people, Senate races, House races, we're talking about this is what are we going to do with all these expiring tax cuts that are already in place that we've been enjoying for the last 10 years as individuals and small business owners? What are we going to do about it? So we're going to dig into that. Some of those policies needed about and it's a big deal. There's a lot of big things on here. No, absolutely. And one other side note, any of you, we welcome comments or questions. even if you're a little angsty, if you're frustrated, like, you're like, why, why is this? Or what is this? Or what's going to happen here? Please type your questions down in the comment section. We want to field as many questions as possible. We want to talk about what you want to talk about. You've got two tax lawyers that are in the trenches here with an incredible team, constantly training and learning what the cutting edge strategies are. Now, one thing we've got to say about this tax cuts and jobs act in a, in a political race, both parties are saying whatever they, oftentimes need to say to win or want to win or whatever. Let's make something clear that all of you know. The Tax Cuts and Jobs Act had an incredible tax savings for the lower income, middle income, and high income brackets. Everybody won. The tax brackets were reduced. There were so many small business tax incentives. There was corporate incentives. There was people that were rich that had incentives. That's how a tax bill passes. You're never going to have a tax legislation that's only going to help the middle class. In order to help the middle class, you've got to get money somewhere else. And to get money somewhere else, you've got to cut deals over here. And it's a tax benefits and tax expenses. There was things that small business owners lost out on when the Tax Cuts and Jobs Act was passed. There was things they won on. There's winners and losers, but it's not about the wealthy and the middle class and the lower class or whatever. There's going to be something for everybody here. So let's just get over that. That's misinformation. The Tax Cuts and Jobs Act had a little bit for everybody. So as we talk about individuals, I guess that's where we go first. Yeah. Man, I think we're going to expect to see kind of to, you know, what, what do you call it? You know, um, bastion, the furious to, or yeah, tax and jobs got to like, yeah, we're going to see a tax cuts and jobs act reloaded. Yeah. I like that. I like it. DCGA too, um, as they will call it in DC. So, uh, Trump has said on the campaign trail, and most Republicans said, we are going to extend the Tax Cuts and Jobs Act. And I want to go over a number of areas in there. Mark and I are going to peel them off one by one. But the first one is individual rates for everybody. Individual rates are set to go up in 2026 from 37% at the highest to 39.6%. Now, Trump said on the campaign trail that he would go back to and would extend the Tax Cuts and Jobs Act. So it was a 37% max rate. But like Mark said, even the lower middle brackets that, you know, you have the lowest bracket of 10 was will not change. But then you've got 12, which is current law, which is going to go to 15, 15 or sorry to be 22 will go to 25, 24 goes to 28. So pretty much every bracket is going to jump back up if we do not extend the income tax reduction from tax cuts and jobs. Yeah. So we should be expecting, uh, this is a good thing that helps every level of American in their, wages and earnings and income level. So we, we want to, we were going to expect to see those stay the same. I don't think we're going to see a cut. I mean, again, both candidates would say, Oh, we're going to cut this and we're going to cut that. I think it's safe to say that we're going to expect, those brackets to stay the same if they're extended. Is this time for a prediction alert? I want to do a Fox prediction alert. Mackenzie, can we do it? Okay. This is like you're watching live. Look at that. We have our own little bar across the bottom prediction alert. Are you going to call a certain provision? I'm going to call a provision. Okay. This is exciting. This is exciting. Never been done before. Never been done before. We are calling that. I think we're going to see our individual tax rates stay the same and be extended. Wow. Some accountant I was there was like, tell me something we don't know more. Anyway, thanks, Mackenzie. We're trying to keep this fun. We've got to talk about taxes in a fun way. But here, let me say this. Depending on how the election went just this last couple days, we wouldn't have been able to say that. Yeah. The most likely outcome, if Republicans didn't win on tax policy here, is that they wouldn't be able to negotiate and come to an agreement and rates would be going up after 2025. So that is, you know, elections do have outcomes and consequences. And that's one, which is Republicans do want to go back and continue to extend these individual rates, which is good for everybody. Like I said, high brackets and low brackets, middle income brackets, everyone has a lower rate. All right. Can I jump over? Maybe we're jumping around a little bit, but let's talk about one that affects everybody. And that is the standard deduction versus itemizing. Now this is a, let's just, for those of you that are like, Oh my gosh, this is garbly goop. Let me just bring it together this way. Standard deduction is a set deduction. You get to take off your AGI based on whether you're married, single, head of household. And that deduction then brings you to your taxable income. It's standard. It was increased dramatically with the Tax Cuts and Jobs Act, and that was going to help more middle-income Americans. For people that would normally itemize, they were like, eh, I mean, I'm just going to go over here. And it helped a lot of people pay less in tax because it reduced their taxable income. Well, itemizing was a benefit of the more higher income individuals, middle income or higher, because they were able to take mortgage interest deductions, the SALT deduction, which was state tax, property taxes, things like that. So if you were a property owner with a big mortgage or you wanted to give a lot to charity or you were paying a lot in state tax, you wanted to itemize. But with the Tax Cuts and Job Act, they estimated almost 20 million Americans got pushed more towards the standard deduction. Well, guess what? Next year, the standard deduction will go back to pre-TCGA levels adjusted for inflation. It's going to be a big haircut. But we're going to see the itemized deductions options go up. And Trump said, I want to get rid of SALT. And I want to allow for people with bigger mortgages because homes are worth more now. So I think this is one that is hard to predict. I think we're going to see the itemized deduction get bolstered. I really think Schedule A is going to get better. But we're going to also see the standard deduction probably stay at those higher levels too. yeah and i think one of the things on this this was kind of more of a middle tax benefit because a lot of high income earners would itemize they didn't care about the stand the standard deduction as much and so because of mortgage interest and a lot of the deductions but if you were a renter let's say you didn't itemize you were like i just get the standard deduction well let me just tell you the standard deduction went from sixty three hundred dollars a year to fourteen thousand for single and 12,700 to 29,000 for married. That was a huge deduction change and increase. And so that is something I think will be likely to stick. I think you're going to see some bipartisanship hopefully to try and get this to stick, but that, that is another one affects everyone, but is targeted more for middle income Americans who don't have a home, but we'll still get a good deduction. Yeah. And on that note, um, If it's not extended, predictions are it'll be around $8,300 for single filers or $16,000 for joint, where if we do see a dollar-for-dollar extension of that same law, it'd be at the $14,600 or the $29,200. Big difference. So, yeah, I think there's going to be some give and take there. we'll see it would be interesting um what else infected individuals that you wanted to hit there's a number of other things some caps on the mortgage interest deduction for your home child tax credit was increased significantly doubled from a thousand to two thousand per child those are things i think you're again there's bipartisan support to extend those even um vice president harris on the campaign trail was one to increase child tax credits The last one that I'll say though for you business owners that have some success and have built some wealth that's important is the estate tax, sometimes called the death tax. The estate tax exemption was raised from a $5 million exemption up to a $13.6 million exemption that doubles if you're married and gets you up to $26 million. And so this is going to go back to a $5 million exemption, which pretty much means if you passed away after 2025, Anything above $5 million that you want to pass on to your heirs is going to have a almost 50% estate tax assessed to it. So by raising the exemption amount, which was done in Tax Cuts and Jobs Act, it allows more small businesses, the family farms and things like that to pass on to the next generation and stay in the family as opposed to having to be sold because they got to pay for the estate tax. Yeah. And I think a lot of people are, um, the wealthy are thinking wisely to do some estate tax planning in 2025, because we don't know how this is going to, again, sift out here. So a big one there. And I don't know. I think from a personal standpoint, everybody's going to, and I think this could be another prediction alert, because I want to say I'm always a glass half full kind of guy too, but Americans benefited from the Tax Cuts and Jobs Act. And individuals will benefit again. Both Vice President Harris and former President Trump both campaigned hard on this. They want to reduce taxes for middle, lower income, everybody. And Trump did that the first time. And there's no surprise there. And with a Republican-controlled Senate, what we expect to see in the House too, they're going to have carte blanche to save us more in taxes. And with that note, though, it does... force people to do a little more strategy a little more thinking because if are you going to go standard deduction versus itemizing and we're going to get to some of these business provisions too so uh it doesn't this isn't going to result in a simpler tax return and that's okay because if you if you plan and strategize you're gonna you're gonna see more benefit yeah i mean the the more you know the rules, the better you can play the game. And so just learn the rules and learn where the tax advantages are in your scenario. Now let's transition to the business tax cuts because there is a big one that nobody is talking about right now. And that is the QBI deduction, qualified business income deduction. This was part of Tax Cuts and Jobs Act. See what happened in Tax Cuts and Jobs Act is there's like three categories of tax savings, right? There was individuals. big corporate tax cuts where corporate rate went permanently from 35 to 21% max rate. And then they said, what do we got to give something to small business, small business needs something. So let's give them this QBI deduction of 20% that that essentially says you get a deduction on your qualified business income of 20%. So if your business made $200,000, you get a 20% automatic deduction and your only tax is if you made 160 grand. So that was what small business got. Now, big business, corporate America, C-Corps got their tax cut permanent. The small business QBI has this 10 year window that it's gonna be expiring again next year. So this is again, part of what we think will be extended This is, again, the Republicans and Trump on the campaign trail talked about extending QBI. And it is really important for small business because that was the one thing they got the last time tax policy all shifted around. This was the one thing small business got. Yeah. And I think we can't think all big corporations benefited and the small business owner got a timeline with the sunset. Big business and corporations in the Tax Cups and Jobs Act, which no one talks about, in order to get the 21% corporate rate, they had to domesticate a lot of foreign income they were hiding offshore. Trump wanted to clean the swamp on big corporations hiding money offshore, not paying taxes on offshore income, and was penalizing and going after big corporations for that. And that's what was a big part of the last tax cuts and jobs act that paid for a lot of these things. So corporations got a 21% rate permanent, but they also had to bring all their money offshore into the U.S. permanently. So there was a, so there was give and take there. And I think the small business owner, it's time for them to get their fair shake. get a long-term benefit here. - And I think QBI is one a lot of people don't know about. A lot of small business owners don't even know about it. They're doing their return on TurboTax, they're missing it. So just make sure you're aware of that. That's a great deduction. A lot of our clients have benefited from it. We've benefited from it in some of our businesses where you can take QBI. And so, but hopefully this is one that stays, this is one to look forward to, but the word is, this will be part of an extended package. And QBI is also, even if you know about it, it's very misunderstood. A lot of people think it's just a calculation that is what it is. There are certain types of income that go into that deduction and other types of income that don't. And there's some strategy involved there. Some accounts will keep their clients out of an S corporation to get them more QBI, but in inadvertently inflating their FICA and their self-employment tax because they're all focused on QBI. So there's there, and which we are not fans of that. We really want to focus on FICA first QBI second, but I just plant that seed for all of you that this is something that you want to be aware of and talking about with your tax, advisor now i want to reiterate this again if any of you have any questions on some of these strategies or concerns about the legislation and some of these please put those down in chat we'd love to hear from you um now the next one for business owners which i think everybody knows about is bonus depreciation bonus depreciation was super cool it was like a hundred percent bonus if you go out and buy equipment buy a vehicle uh the auto deduction was it the most incredible limits that it had ever been at since the 80s, the 1980s. And so we, but it started to phase out in the last three years. This coming year, it'll be at 60% and not 100%. And a lot of business owners are begging for that. And it's a great way to stimulate the economy. I think Donald Trump and Congress are going to want to see that happen because when people go out and buy more cars, buy more equipment, buy more computers, they're whatever what have you forklifts and machinery for manufacturing if you can write a lot of that off in one fell swoop it it really is an impetus for small business owners to invest back in the economy so i think yeah yeah just so everybody knows what this bonus depreciation means is like when you buy equipment in your business whether this is a car or computers or you know heavy machinery equipment in your business whatever it is the government typically doesn't say the irs i should say oh you can write the whole thing off they're like well that thing lasts for five years so if it costs you 100 grand you got to write off 20k a year on the other hand if with bonus depreciation now that was the incentive to say no no go buy this stuff we need to stimulate the economy And we're going to let you write off the whole thing in one year. And so that's what this bonus depreciation is, is it allows you to go buy this new equipment, whether it is a car, computers, whatever it is. And now you're taking 100% write off in year one when you bought it. Now, that got phased down again to where Mark said on those 60%. But that's something that is also likely to come back into the conversation here as we see the the tax cuts and jobs act point two. Yep. Yep. I'm with you now. I, I'm going to, I got a question here via text, um, from one of our listeners that they didn't go through the platform there, but, um, they're asking about the child tax credit and what to expect with that. There was a lot of promises made on this. JD Vance was making promises. So it was vice president Harris and Donald Trump. And that's one where I think it's wait and see, uh, So it was taken from a thousand up to 2000 with the tax cuts and jobs act. JD Vance was throwing out a figure of $5,000. I don't, any tax cut that's out there has to get paid for as well. So, you know, where the government, the government take it away. So I will have to see on that. Now, a couple that Trump, I should say, president elect Trump, gotta be respectful there. Vice president Harrison, president elect Trump. One thing that president elect Trump, really went hard on was not taxing tips and not taxing social security uh and in his victory speech said we're going to be the party of we promised it and we're going to deliver so well i i would love to see that delivered and we're gonna but that's one of those big ones that was not even in the tax cuts and jobs act that would be new yeah new legislation Yeah, I think there was still there was social security tips over time. These were new things that were talked about on the campaign trail that there would not be taxes on those things. And so we're going to see how those come in. These are new ideas, you know, in the tax code. And so a lot of stuff we've already talked about is just extending stuff that's already there. Yeah. You know, and so it's a little easier to do that because they've already budgeted it for it. They already know that the, you know, what it costs. So these other things, they got to go get them scored. What is it going to cost us if we don't tax overtime? What is it going to cost the government if we don't tax social security? And they got to go score it in Congress. The budget committees do. And then they come back and they say, OK, great. How are you going to pay for it? Yeah. And. And this is going to be the crux of everything. Now, I think Trump and the Republicans, I think he's got what? He's got Elon Musk and Ron Paul on hand. They're like, we can find some money. He's like, we're going to cut some government spending is how we're going to take care of this. And so that's likely where they're going to go. When they did Tax Cuts and Jobs Act, as Mark said, they did some tax raisers, actually on big corporations, foreign companies that were doing stuff offshore, making them bring back income that had to be taxed. And so there was some kind of pay for it there. But we need to see some, quote unquote, pay for it, as they call it in D.C., which we've been told is going to be cutting government spending. And I, you know, in kind of the spirit of unification here, I want to throw out a thought or concept. Is it, you know, sometimes people, your quarterback's not picked for the starting lineup and you know we're still in football season and it's exciting time and you're like well you know my quarterback didn't get picked but i'm still a fan of the team i'm going to get behind the team and so you try to find the good the good and and that and and i like what just matt said is that finding the good here is just think about if we could cut government spending we all know whether you're a republican or democrat there's some fat right the government spends way too much money in certain areas now we might have opinions on where they spend too much but we know they spend and if we can save money there and turn around and give tax cuts which is the concept that's what the republicans ran on so hey if you've got a great arm and you can throw the long bomb let me get behind that i'll see it happen you know so so republicans if you can cut costs and you can give me a tax break Let's see it. You know, I'll give you a shot, you know. And so I think if we can go with that attitude and really come together, because all of you listening here are business owners, because that's the platform we're on here. And if we can help your business save taxes and you can reinvest that in your business, get pay higher wages yourself. take home and build a retirement and not be so dependent on social security. That's the goal here. We got to take care of our own economy. I don't want to depend on the government to do it. And so if that's the plan, show it, you know, show me the money. I'm ready. Yeah. And I'll say this on the similar vein is no matter who's in Congress, who's in the white house, that's just the wave. You cannot control the wave, but you can't control the surfboard behind me here, you know, and whatever you're doing in your small business is what's going to make the most impact. Yeah. Taxes are a huge expense and we want to talk about it. We're freaking tax lawyers. Don't get me wrong, but But I don't want you to focus too much on that. And I think some people get caught up in that and the politics of it is focus on your business. How am I going to make money? I want to be strategic about it. I want to make sure I get my tax and legal planning done right. But don't wait for Washington or whatever's happening in Congress to solve all your problems. I think the best advice is to stay focused on what's going to drive income and revenue in your business. And because that's the stuff, you know, you can control. Absolutely. Yeah. Gosh, great way of saying that. Well, folks, I just want to say I don't have any final comments. I think we're going to be back on a regular basis. We do have a question here on the SALT cap. Let me hit that one. It says, what do you think about the SALT cap at 10K and capital gain tax rate under a Trump administration? Okay, good question. So I'll hit the SALT cap if you want. So SALT is state and local tax, and there's a deduction that you would take on your federal tax return that says, hey, I made $100,000, but $10,000 went to my state for state income tax. So only tax me like I made $90,000. And what the federal government didn't tax us in jobs is they said, you can't take more than $10,000 as a deduction. And so that hurt high-income earners that, frankly, paid a lot of state income tax. And the blue states that had a lot of state income tax. Yeah, yeah. And so what Trump did mention on the campaign trail is he wants to remove the cap. And pretty much get rid of it. Yeah. Now we'll see how that's going to cost a lot of money because this was one of the revenue raisers on how they paid for a lot of their tax. I can just see Trump saying, I want to remove that cap. Hey, Elon, what do you got over there? Did you take out some more sinks over at DOJ? What are we saving over there? Okay, let's add that up, you know, because that's what it comes down to. It's got it. It's got it. to pay for it somehow yeah you got to pay for it now on the capital gains rates what i'll say there is those were made permanent in tax cuts and jobs act so we got the 10 15 max 20 percent long-term capital gains rate i don't know that there was much chatter on capital gains rate reduction i think it was we're going to keep them low i do know that vice president harris was proposing on raising it for those that make over 400k a year and would only affect that group. But I haven't seen anything about changing that. So I think the status quo is like what we'll see on capital gains. - Now it's interesting someone brings up capital gain. I had a family member actually text me, it was on election day. She had some questions about capital gain and she's saying, "Well, how can I get ordinary income? I wanna avoid capital gain." And I thought that's interesting. And I said, you want capital gain. So I think this is a chance to, while I have some of your ear to, to maybe teach you what capital gains about capital gain is a lower rate than ordinary, but it's not a tax on top of ordinary. And that's what she had thought. So she goes, I want to avoid capital gain and just pay ordinary. It's an either, or it's not a capital gain on top. And I come to find out as I was talking to people this week, other people who had that misconception. So, If you go out and make money as an Uber driver, you're going to pay tax at ordinary rates. That's what it is. If I go out and buy a product, make it better and sell it, a service or whatever, I have a small business. If I get a W-2, if I work for someone else, that's ordinary income tax rates. And we talked about those brackets a little earlier. Capital gain is when you sell an asset. like think of a rental property, stock, cryptocurrency. If I take an asset and sell it, the government has said, and we've said this as a community, as a citizen of the United States, that if you sell an asset, we're not going to tax you at these ordinary rates. We're going to give you a better rate. We're going to give you capital gain. Well, the tricky, the sneaky part here is if it's long-term capital gain, you get these cool rates. If it's short-term capital gain, you're back at ordinary rates. And what the government and we as citizens have said in Congress is, well, if you hold that asset at least a year, now we know you're investing. If you just flip it, now you don't get capital gain rates. So in summary, if you can hold an asset at least 12 months and get these lower rates, you get capital gain. That's a good thing. And that's it. You don't pay ordinary on top of that. If you hold it less than 12 months, it's called capital gain, but it's called short-term capital gain. You're back in the ordinary bucket. And we don't want ordinary rates. We really want to work towards capital gain. So back to Matt's point, we're not going to see probably a change in the capital gain rates. That's okay. Vice President Harris said we want to tax unrealized sales or unrealized gains. That was kind of out there. And even most Democrats didn't like that one. But we're here to stay with capital gain rates that are great. I think most of you want to try to get there if you can. So, yeah. All right. Let's see if we have any other questions in here. People got some comments, sounds like a scam. I don't know if that's just taxes in general. People got some comments. If you got a question, I can at least answer a question. You know what's funny when someone says sounds like a scam? We live in America. We got to pay for things. We have a capitalist system where we pay taxes. All right, cool. Well, some people have said, One flat rate. Steve Forbes for years back in the 90s and early 2000s was trying to sell this one rate concept. Just fill out a postcard. Whatever your income is, there's one rate. But we found out real quickly when you look at that, that we're not motivating us to do things. That's what taxes are about. If you put in handicap access, get a tax credit. If you put in solar, get a tax credit. Oh, if you buy an electric car, get a tax credit. Oh, if you hire people in a certain zone in the country, you can get a work opportunity credit. We haven't really... Research and development credits. You have a small business. So there's all these things that motivate us to do things to build a better America through taxes. And some may say, well, that's a scam. Well, I'm, again, a glass half full kind of guy. I'm like, that's an opportunity. So you can say, hey, I want those benefits, and it's going to actually help me, and it'll help the country, rather than, you know, I'm getting told what to do. Well, you know, some people, I don't know. is just several ways to look at it. And so, yeah. And another way to think about the individual level is we want to encourage home ownership. Let's make a deduction for your home mortgage interest. Oh, we want to encourage charitable giving. Let's give you a deduction when you donate to charity. And so those are the things that create these incentives. And again, I would say, learn the rules of the tax code so you can play the game and not get played. Oh, I love it. We've said that before. You know, don't just don't hit the player. Just know the rules of the game. And, uh, you know that's why it's your advantage some of these board games are so complex now i just i'm like candyland maybe monopoly but these crazy games where you got to go across the country oh they're just so complex yeah i'm just i don't know what games these are i'm not dungeons and dragons i don't know there's some board games that really i'm like let's just go play poker you know i can i can do some texas holding okay like craps there's a good example perhaps i will lose my shirt it's called super complicated yeah very good just give me poker you know i can play that you know - So what is tax, the tax code is not Candyland. - No, no, it's craps. - But this is your money on the line every year and you gotta file and pay your taxes. So if you're having success as a business owner, you can really move the needle by being engaged on this and being sure you got the right tax and legal plan. - You know, Goo Crew Gaming, I love, you say it sounds like a scam, I'm gonna say it sounds like craps. I'm going to go with that. And apparently you have gaming in your, your handle there. That's what the tax code's about. It's complicated, but the people that know how to play craps, you have your greatest odds of winning in Vegas if you know how to play craps. So I don't know, maybe a little parallel there, but. All right, well, everybody, we are not going anywhere. Like I said, we have a great podcast at Main Street Business, just on all the platforms from, you know, everywhere. And also the Directed IRA podcast on self-directing your retirement accounts. Our website for the law firm is kkoslawyers.com. If you want to self-direct your retirement account, get to directedira.com. These are all resources to help you excel, build your dream, build wealth, save taxes. And as we see legislation come out next year, we're going to be there. We're not. Yeah. And thanks to the entrepreneur community. And we're glad that we got to be on this exclusive kind of like first look at Entrepreneur Insider. Hopefully they will have us back. And Dan, the entrepreneur team, thanks for having us. Yeah. Thanks so much, everyone. And don't give up. Don't give up on the American dream. It's alive and real. And we are so grateful to be here with you.