New Tax Rules: What the OBBBA Means for Your Healthcare Practice

Simone 00:00:00 Welcome to the Flychain Reaction, a podcast designed to empower healthcare providers like you to master the business side of running a practice. Each episode sparks a chain reaction, where actionable insights on financial management, operational efficiency, and growth strategies build upon each other, creating a powerful ripple effect to help your organization thrive. With Flychain's financial expertise and insights from industry leaders, we'll dive into everything you need to ignite success. Join us, and let the fly chain reaction spark growth in your health care business.

Simone 00:00:40 Wonderful. Welcome back to the Flychain Reaction podcast. I'm Simone. I'll be your host for today. I'm the Head of Growth at Flychain, and we're joined here today with Jaime Deverall, who's the co-founder and CTO of Flychain, and Patrick Elliott, who is a certified financial planner at Uprise. And he's worked with a lot of our Flychain customers on business and personal tax strategy.

Simone 00:01:04 And I'll let him introduce himself in one second, but I wanted to introduce the topic for today's podcast. So we're unpacking the new One Big Beautiful Bill Act, which just passed, and it brings a lot of changes as it relates to the tax code. So if you run a small to medium sized healthcare practice, you should be listening to this podcast. Because these could have direct impact on how much you owe and how much you keep as well. But it's a complex law, and we understand, you know, you practice owners do not have time to read hundreds of pages of tax code. And this is why we brought in Patrick, who can walk us through what are the key changes. So welcome, Patrick, and thank you for joining us on our podcast.

Patrick 00:01:50 Thanks. I'm excited to be here. There's a whole lot going on but we'll try to boil it down and make it useful.

Simone 00:01:56 Yeah. No, definitely. I think with that, what would be useful is to start with the big picture. Right? What is actually changing with this new law?

Patrick 00:02:05 Well, the biggest thing is that most of the temporary provisions from the 2017 Tax Cut and Jobs Act were made permanent. Some of that includes the deductions and income rules that were gonna expire this year already. And then there's some practice owner there's more -- excuse me, the permanence in those things gives us more opportunity to plan for taxes. Obviously when we had sunsetting rules we were trying to get things done but now that we have a more solid picture of what the future holds tax wise, it makes planning a lot easier. And then some of the new provisions actually give us a little bit more flexibility, which flexibility usually means something to do with taxes, which is why we're here.

Simone 00:02:49 Okay. Yeah. No. That sounds great. In that case, let's just jump right in. I know we have a lot to talk about. So just to make it easier to go through all the changes, what we did was we distilled the changes into six main categories. And these six categories really held the greatest implication for our Flychain customers, but also for healthcare practice owners in general. And so the six buckets are QBI deduction, growth and -- growth and equipment, losses and down years, C-corps and long term exit planning, employer side tax planning, and personal tax planning. So we'll go through these categories one by one, and I think we can just start with the QBI deduction. So a lot of our Flychain customers are structured as S-corp. So what does this bill change for them, especially when it comes to income and taxes?

Patrick 00:03:45 Well, the biggest thing is that it's basically a 20% deduction in profit -- in taxable income right off the top. The QBI stands for qualified business, so there's some restrictions you have to make this qualified thing. But for the most part, the practice owner should, and it's 20%. So if you have a \$300,000 profit before the 20% deduction, that \$300,000 gets reduced to \$240,000 now. That is a significant tax savings. And then the... it was set to expire in 2025, but it's permanent now. And it's a major, major ongoing benefit that's gonna help S-Corp structure efficiently. Because the whole purpose of the S-Corp is to be tax efficient, right? It has to do with self employment taxes and tax optimization. This is just another tool in the toolbox for us to use appropriately.

Simone 00:04:38 Okay. Wonderful. So it hasn't actually changed anything necessarily. It's just extended what was previously people didn't know if it was gonna continue applying or not. And this time, it's just, okay, now it's been made permanent.

Patrick 00:04:51 Correct. Yeah. That -- well said. And it was something we were taking advantage of the last couple years. But to your point, yes, it's now permanent. It's locked in. It's something that we can build our tax plan around now instead of trying to hope it doesn't go away.

Simone 00:05:05 Got it. Got it. Okay. Great. And then moving on to the next category, which is growth and equipment. So let's say someone's upgrading therapy equipment or x-ray equipment or building out a second location, does this bill change how that spending gets treated from a tax lens?

Patrick 00:05:26 Yes. It goes back to some old, better rules. Now the good thing about this one is if Flychain is doing your books then this is already gonna be tracked appropriately. This is gonna be built in for you. However, what's very important is that 100% bonus depreciation is back. What that means is that you can deduct the full cost of the qualifying equipment in the year that it was purchased. And that is something that can be just a lucky happenstance because you're expanding or again, if we're planning properly, we can find the purchases of things to where they actually benefit you the most. Now this does apply to most of the common practice investments. I mean, you have therapy equipment, you have laptops. These are pretty standard things, and it does apply to most of this stuff. But like anything else, if there's a question, that's -- it's definitely worth a conversation.

Simone 00:06:19 Got it. And, actually, an example would be super useful here, even just for myself. So let's say someone was looking to upgrade, you know, therapy equipment or buy a couple new laptops or tablets, how would this 100% bonus depreciation... how would you think about that, like, in terms of timing, and then how would you then apply this bonus depreciation?

Patrick 00:06:44 Well, the first thing that you look at you almost always default to taking a tax deduction. So that's almost a no brainer. What we're really doing is checking to make sure there's a reason not to take that deduction this year or to take advantage of something. And really, if we take that methodology to answer your question, it's just about what do we know is coming up, right? So if we have expectations that maybe in the following year, you're going to have a large profit increase because a big loan was paid off or or any number of things. We just want to time things appropriately that you can take that deduction.

Patrick 00:07:23 But the good news is even if you have to buy something this year, right? You don't have the luxury of choosing when you get it. Well, let's say that you use that 100% depreciation and that actually wipes out your business income on paper. For this year, that sounds great. Again, if I'm on paper now, I'm not talking about you being actually starving. But if we can knock down the income this year, that reduces taxes. The problem had been, well, if you knock it down too far and you have leftover expenses that carry forward, all this stuff, it's super simple now. Large business losses do carry forward. So in your example of you have to buy a piece of equipment, you don't have the luxury of timing, if that hits your profit to the point to where it uses all of your depreciation, you don't lose. You can still carry that forward to the following year. Does that make sense? Am I answering your question?

Simone 00:08:15 Yeah. No. I think that makes sense. And, Jaime, if you have any questions here, yeah, feel free to chime in, but that makes sense from my side. \[**pretty long pause**\]

Jaime 00:08:28 Yeah. No. That makes sense to me.

Patrick 00:08:31 Cool.

Simone 00:08:31 Perfect. So then moving on to our topic about losses and down years. What about years that aren't so profitable? We have a lot of, you know, customers and just generally, in the healthcare space, you know, maybe a practice just opened or they look to expand it and they maybe they expand it too quickly. Is there anything helpful there that they can consider from this new tax bill?

Patrick 00:08:55 Yes. And I wanna be clear. You know, we never wanna... we never are happy when we use the word loss. But when it comes to taxes, when it comes to economics, when it comes to this type of stuff, we really need to take the sting out of that word because it can be beneficial to the overall plan. Specifically here, I'm talking about -- let's just have a simple scenario. You have a married couple. One opens the practice. The other one has a job that pays \$200,000 a year. Year ends, first practice -- first year of the practice ends and like any other business, you have a lot of outlay, a lot of expenses. So let's say you have a \$100,000 worth of business loss. Well, that can actually go intra year. It can go against your spouse's earned income. That is a massive, massive tax savings right there. So you can offset your spouse's income which gives you a immediate deduction in your overall taxes which has all kinds of follow on implications.

Patrick 00:09:56 Perhaps you were not able to take advantage of a Roth IRA because of your income but now you can this year. So the losses are not the law is not designed to help you create losses. The law is designed to take some of the pain out of taking the chance of building a business. You are taking a tremendous amount of risk with your capital and your income. This type of ruin just makes it worthwhile. It means that you can't hurt yourself if business doesn't go perfectly right off the bat. Does that make sense?

Jaime 00:10:27 Yeah. And what kind of tax status do you need to have with your spouse in order to make that work? Is it just, like, on, you know, just on paper you're filing as a married couple? Is that the --

Patrick 00:10:43 It's gotta be joined. It's gotta be married jointly. Because if you do married filing separately, that's, you know, you obviously separate that and down there. I'm not... I'll have to get back to you on head of household. I don't believe that's gonna have any effect here because head of household is designed for something else. So generally speaking, this is gonna be the most helpful with married filing joint.

Jaime 00:11:01 Yeah. This is probably like knowing our providers. I just wanna highlight for the record. This is something that is actually very, very helpful to them because many of them do have this kind of setup. And sometimes, you know, I've seen it happen where the spouse is helping, like, so it's one person is starting the business, other person still has a regular, you know, regular job, but they are starting to help the business in many ways. And this is just another way that they could help the business, like, or that the business can help the spouse who's working a regular job just bring down their, you know, their taxes at the end of the year.

Patrick 00:11:44 Well, I mean, there's multiple scenarios where this could be beneficial. So a scenario where you have two spouses but one doesn't have maybe the best benefits. And by taking the business loss in that year, you actually now qualify for even bigger tax contributions or the free money from the healthcare exchange. I mean, there's a million ways that understanding how to use this tech. Maybe you have an older spouse, you wanna do Roth conversions. I mean, there's just a bunch of ways that this can be helpful to people. The key is understanding who we're working with and what their big picture is.

Simone 00:12:21 Yeah.

Jaime 00:12:22 And just to make it super clear that -- this is only for S-corps. Right? That -- \[**overlap**\]

Patrick 00:12:28 Well, actually, that's any past due entity. So it could be us. It could be sole. It could be --

Jaime 00:12:34 That makes sense. Cool.

Simone 00:12:35 Right. Yeah. No. I love that because it really gives owners a safety net to reduce taxes when things don't go as planned or a lot of the times, like, in healthcare, you see, you know, seasonal fluctuations. It might be a slower season, early stage losses. So this is a really good consideration to have.

Patrick 00:12:52 Well, it -- also if you think about it logically, it also gives you more flexibility as it applies to things like capitalization. Because if you're trying to figure out how to expand and you, on one hand, don't wanna sacrifice your retirement, but you realize that using your own capital through something like a ROBS, a rollover from business startup, that could potentially help. Then now you're creating a C-corp and it just -- I love this stuff. The big takeaway... the big, big takeaway is that there are a lot of business owner friendly rules right now. And just you need to make sure that you look for everything, take advantage of everything and get every single tax loss that you can get or every tax savings you can.

Simone 00:13:35 Yeah. Wonderful. Yeah. And then moving now onto the fourth category that we have, which is C-corps and long term exit planning. Of course, in healthcare, there's a lot of this exit planning that is very top of mind. And some of our customers are thinking long term, maybe selling their practice down the line. Is there anything in this bill that matters for exit planning?

Patrick 00:14:02 Yes. And really, this is super applicable to the ABA practices because the industry is growing so fast. The capitalization is growing so fast. I think it makes real, real good sense for people even if they start out with \[**long pause**\] an escort \[**long pause**\] for one of my clients who is getting a business that has a couple million dollars a year in revenue. So thinking ahead for how you want to leave the business is super, super critical. And one of the ways, especially a practice like this, is you can actually sell the business. It's much, much easier to sell this type of business than it is like a consulting business or something that's more brand heavy. Not that there's not branding in this.

Patrick 00:14:50 But what's cool is there's something called QSBS. And I apologize for all the acronyms. The government love acronyms. But QSBS stands for Qualified Small Business Stock. Short story, you take your company and you create a C-corp instead of an S. So real, real brief, C-corp is like a regular company. It's its own entity. It has its own tax return. It does everything on its own and then you have a personal tax return. Now I will tell you in a follow on conversation, everybody says, oh, that creates double taxation. And it does. But let's be frank. If two taxes add up to less than one tax, you still win, right? So that's all I'll say that way. And it's on a very case by case basis.

Patrick 00:15:38 But USPS, if you convert your company to a C-corp, and then you hold it for a period of time, five to ten years down the line, and then you sell it, what happens is you actually get tax free capital gains and that has actually increased under the One Big Beautiful Bill up to \$15,000,000 in tax free gains. That's not a Roth. That's not a -- it's nothing locked away. That's actual money, liquid cash that would be available to you. And to make it even more fun, if you have a family, these benefits are stackable. You can gift equity to kids or to other things in a trust. And you this is such a big deal, especially for the ABA practices because there really is no limit as far as how big these practices can go.

Patrick 00:16:35 I expect a massive expansion in the industry and then like everything else there'll be some consolidation at some point probably 10 years down the road. That's an amazing place for people to have their liquidity event and ten years down the road, that's perfect with USPS. So it's just one of those things that when I work with people, I really wanna understand the emotional, the big picture of what are you trying to get out of this? Yes, it's a job. Yes, you're providing value. That's true. But you, who are you? What are you trying to accomplish? Then we can use these tax things in the right order to make sure that you get your goals. Does that make sense? You can tell I love taking tax money away from tax man. That's my favorite thing to do.

Jaime 00:17:18 That's great. And it's just exactly what we've seen among our clients is... this is their nest egg. Right? And this is their retirement fund. They put everything into the business. And so this is not just for them, it's for their kids as well. Like, the value of the business.

Patrick 00:17:37 That's actually a super astute point. And that's something that comes up quite often as especially with business owners. Well, business owners, we're risk takers. We don't think like other people. And you know that, I know that, our clients know that. We're just different animals. And many, many times I'll have a client that has a dollar, let's just say, a dollar to invest and they're looking at should I put this in my retirement account or should I invest in myself? And I will tell you 99 times out of a 100, a CFP like myself will tell you, oh, diversify the risk, invest in retirement. Then there's nothing really wrong with that. But let's also look at why that statement is being made.

Patrick 00:18:15 Many times that CFP has access to controlling their money and in controlling the investments and has more understanding of retirement accounts. That may not actually be the best thing for the business owner. The business owner may be able to take that dollar and turn it into \$15 whereas the stock market on its best ten year period is gonna turn into \$10 if that makes sense. So what's very important, if you hold yourself out to be a small business consultant, you have to be able to have the mind frame of a small business person. You have to be able to think less averse to risk but also have some common sense. Our job here as consultants for business owners is to not tell you to always take the safe route. Not at all. It's to actually help you see what the next logical step is for your own plan, and then give you options and let you decide who's going to go. That includes tax optimization. That includes investing in yourself or the 401Ks. It includes all of the rest of that stuff. Sorry about the soliloquy, but pretty important.

Jaime 00:19:19 I really like it. And then you said five to ten years. You know? You said five to ten years of holding this... the C-corp. That's actually really important to mention that because that's a pretty long time frame to, like, to prepare in advance. Right? Many of our... so what would you recommend, let's say, to, Flychain clients today? You know, maybe they have an LLC filing as an S-corp. You know, many of their timelines are I wanna sell in five years. So they need to get convert to a C-corp ASAP, basically. Right?

Patrick 00:19:57 Potentially. And this is where it gets to be very interesting because the conversion... so on one hand, you think, well, why wouldn't I convert, Patrick? I want tax free income. Well, we have to go back into capital needed for the growth, because everything comes down to the business valuation. And I have several of the clients that we both work with are going from, you know, a \$600,000 debt position to open a new location to a \$2,000,000 asset in eighteen months, I mean, ridiculously fast periods of time. So I would actually not concentrate on the after tax rate of return. What I would first concentrate on is how busy do you want to be? Because understanding that the constraints on you personally is gonna help you then inform that decision to either build, buy or hire, right? Because as you get bigger, you're gonna have more tasks.

Patrick 00:20:53 You will not, as an individual, be able to handle all this on your own. You won't. It will kill you and there's not enough time of the day. So you have to understand big picture, what's the most that you're willing to take on as far as work. Then we work backwards. We say okay, if this is the most you're willing to do and we make this investment in a new space then the revenue, the income, whatever the workload is going to exceed what you're willing to do by two and a half, a factor of two and a half. That's not an end of the day -- story. Now we look at that two and a half and say, Alright, well, is that enough profit now to bring somebody else on to take on the additional tasks? And everything is a cost benefit analysis.

Patrick 00:21:37 So back to your original question, should we do this immediately? More often than not, I would think the default for ABA practices is yes. But because it'll change your ability to borrow money. It'll change your ability to have partners. It'll change your ability to take certain deductions. Nothing, absolutely nothing is a one size fits all. Does that make sense?

Jaime 00:21:59 Yeah. Yeah. Okay. I could say selfishly from a bookkeeping accounting standpoint, I've liked C-corps because it's less tempting for you to start putting stuff on personal cards. The veil is stronger. You know, it's just more clear between personal and business.

Patrick 00:22:22 Well, I totally agree. And as long as we can keep the income down to a level that doesn't kill them on double taxation, we're in really, really good shape because you have more friendly benefits available in the C-Corp. You have -- and a lot of the practices that we're dealing with have highly compensated employee owners because there's just a bunch of profit there. And then the administrators, the therapists, the medical professionals, everybody under them, they're getting paid very well but not quite as good. So we also need to take a look at 401K provisions, making sure we have -- and I don't want to get too deep in the weeds here but there's things like QACA and their Safe Harbor. So there's ways that you can set up your own retirement plan to benefit yourself and your employees.

Patrick 00:23:09 There's also, you know, find benefit programs. So this is the fun of what I do. Really there's a million ways that we can build the path. But it's the most important thing to understand what you're trying to get out of all of this work. That if we hold your goals as the standard and work backwards, then these decisions are so much easier. They're not just esoteric. They're very specific. How does this help me achieve my goals? Does it? Yes? Then I do it. Does that make sense?

Jaime 00:23:44 Yep. Makes sense. So if Flychain clients wanna explore a C-corp conversion, we'll share more information on how to do that. But it'll be a initial conversation with you, and then we can help you guys set that up.

Patrick 00:24:00 Really, truly, everything's an initial conversation. One of the things I like the most about our relationship is that 45-minutes, just no pressure. What are we talking about? What are you dreaming about? What can we do? That takes a lot of that pressure out of the way and lets us explore what actually is possible. So all things start with that conversation.

Jaime 00:24:21 Sweet.

Simone 00:24:22 Wonderful. Great. So moving swiftly on to the last two sections for our discussion today, the employer side tax planning. So most Flychain customers, again, they have teams. Right? You have clinicians. You have admin stakeholders. You have schedulers. There there's a ton of different roles. Are there any updates that affect them as employers?

Patrick 00:24:47 The thing that jumps out to me the most is a little bit better student loan repayment program or even current tuition. Basically it allows employers to attract good employees by offering the ability to pay off a student loan. There's limits, each year. I think it's \$3,600 a year right now is where the limit is. But the key is it's a tool that is used to both minimize taxes. So you've got a little bit of a tax break. It is a tool to help attract better employees and also gives you If you wanna upskill somebody, you have a way to do it in a tax efficient way. You can send somebody back to school as it were for something and and pay for their tuition as you go.

Simone 00:25:36 Got it. And is this something new or is this just like expanded offer? Like, you know --

Patrick 00:25:44 Expanded. Yeah.

Simone 00:25:45 They just clarify some favors, but it's not necessarily like completely new?

Patrick 00:25:51 Definitely not completely new. It's basically a retooling of an old rule. And they do this every once in a while. They'll expand the limit on this or contract it on that. In this particular case, it's basically doubled the effective amount on which you can have.

Simone 00:26:06 Okay. And I think this is also an important thing to consider because a lot of the times, like, we work with a lot of behavioral health practices and the churn and employee turnover is so incredibly high. And so if there are ways that you can, you know, invest in your employees in order to try and keep them, and reduce that churn, this is something worth exploring. Right? Like that student loan repayment program. Yes. It might be, you know, you have to end up spending 1,000, 2,000 more, each year. But at the end of the day, you get some sort of tax deduction. So, yeah. Okay. There is still an out of pocket spend, but you can keep your employee. They'll be happier. You're paying down their student loan, which I'm sure a lot of the employees of our customers would hugely benefit from and hugely value. So I think this is really interesting, and it's a good way to differentiate yourself from competitors as well.

Patrick 00:27:10 Oh, I completely agree. And that's one of the reasons we bubbled this one up. That actually comes up quite a bit, with the Flychain folks that I'm talking to. This is something that's important to them. Being able to take care of employees, being able to do these things. Yes. I agree with you.

Simone 00:27:24 Yeah. Okay. Perfect. And then the last one is this personal tax planning category. So let's shift gears a little bit. Are there any changes that affect practice owners personally?

Patrick 00:27:39 There's a couple of them. So one of them is expanded access to HSAs. So real quick, HSA is different than FSA. The HSA is one that you can put money into now. You get a tax deduction. That money will grow tax free. And then when the money comes out and is used for healthcare or medical expenses, it's also tax free. It's the single greatest tax advantage account in existence. And a lot of times, clients that have a good cashflow and a good nest egg, what we'll do is we'll purposely get into a health insurance plan that allows for the HSA.

Patrick 00:28:17 This is where the change comes in. It was you had to be in what's called a high deductible health plan, meaning exactly what it sounds like. You would pay a lower premium, but your out of pocket deductible would be much, much higher. So the idea is that you would have the HSA to help offset that. When we have business owners that have higher income, one of the one of the future advantages we can do is if you're healthy now and don't actually need to have access to all that money today for chronic illnesses, we can max fund an HSA, which again, the rules for getting in there are are easier now.

Patrick 00:28:57 Just it has to do with how much you have to pay for health insurance, but you can get into it easier now. That gives you an immediate tax deduction, but you've also now got something that you're building up for retirement age. Because when you retire, the two biggest threats you have to the nest egg that you've saved is the cost of healthcare, which an HSA will directly help you offset because it's tax free and the overall tax rate. So HSAs have been made a lot better.

Patrick 00:29:24 Another big one especially for our folks in New York and another, really high city and state tax, there's a thing called SALT, which stands for state and local taxes. Basically, you get a credit on the federal taxes for having to pay state and local taxes. That has always been the case, but there has always been a limit on it. That limit has been basically doubled. So it's much higher now. So you get a... you pay your state and local taxes, and then you get a credit on your federal income taxes for that dollar per dollar.

Patrick 00:30:04 And then there's one other one that... it's one of those things that we're looking at about -- \[**overlap**\]

Jaime 00:30:10 So on the SALT stuff. Yeah. How do you... is that applied automatically? Like, how do you make sure you're availing of that? Do you... is that the CPA, the tax filing CPA who make sure that when you file your state goal?

Patrick 00:30:23 CPA practice and --

Jaime 00:30:25 Cool.

Patrick 00:30:27 Correct. So the two things about it is the planner needs to know it's there. So when we're making, you know, assumptions on tax drag, things like that, we can better assess profitability. That's really what's in for the planner. For the tax person, they need to know that and execute it correctly is really all it is.

Jaime 00:30:46 Got it. Got it.

Patrick 00:30:47 Am I answering your question?

Jaime 00:30:47 Yeah. Yeah. Yeah. I was just curious for myself because, you know, New York, we pay city, we pay state, and it just keeps adding up. New York City.

Patrick 00:30:59 So I'm -- as a side, I'm building a -- well, I've actually built a calculator that helps you decide if you should be an S-corp or a sole prop. So it's for small businesses and you guys. But the biggest challenge that I had was accounting for the city of New York and for LA because there are some really weird extra taxes built in there on S-corp. So it works. It's pretty cool. I'll show it to you later. **But, yeah, New York City sucks.**

Patrick 00:32:10 You want me to talk about the children's savings account?

Simone 00:32:12 Yeah. I would love to learn more about that.

Patrick 00:32:17 So this is the one I was gonna tell you is it's gonna change. Whenever something new comes out, they try to define it, but there's always gonna be a catch. There's always gonna be something to it. So right now, I'll tell you what we think we know about it. And even as a group, we're still researching this. But basically, there's a children's tax advantage savings account that will have some rules around it, of which I think are not even fully defined yet. By the time I talk to individual business owners, we'll have more clarity, but there's gonna be some rules around it.

Patrick 00:32:50 The way we look at Uprise, the biggest advantage of this is that you would potentially get \$1,000 free. You know, I don't know we're not sure if that's a credit or if it's like a zero coupon bond where it's a -- contribute over time. More to come on that. But the idea is to try to get people to save their children early because you've got the power of compounding. You've got with inflation, with taxes, the average income in America is much tighter than it used to be. And we're just not gonna BS each other. It's tight. And there's a lot of people that are living paycheck to paycheck. So the idea here is if you give this tax advantage and even seed money to a child, then potentially, you can put a lot lower amounts of money into it. And because of the power of compounding, it'll have a huge, huge effect for that child in the future, which how does that benefit the whole country? Well, more tax revenue, more more assets. So the concept is great. Execution, we're gonna figure out as we go. Does that make sense?

Jaime 00:33:56 Yeah. Are there -- what are the restrictions on, like, touching those funds? Because presumably, to benefit from the compounding, you do wanna incentivize basically you cannot withdraw this until child is of X age. Is that how it's structured?

Patrick 00:34:11 It's gonna be something like that. Yeah. And it's gonna have restrictions on how the money is used as well. We... at the putting it together of this, we didn't find enough specifics to be able to line it out. So we left it super high level. Like, there's gonna be restrictions, and we need to look at it.

Jaime 00:34:26 Yeah. Yeah. That makes sense. Yeah. You know, it's like one of these things. I think the spirit of the rule is good. Right? You wanna get it like, everyone in the economy to benefit from the power of compounding, and we'll look forward to seeing how this thing actually plays out.

Patrick 00:34:44 Well, there was a move like this a few years ago, where there's a thing called the **Coverdell** education account, and Coverdell has different rules in \[inaudible\]. But for a small period of time, that contribution limit was expanded from like 1,000 to like 20,000. And there's a couple years in there where people who had excess cash were able to do the drop ins and get them invested. So this is one of those things where every once in a while you'll have this just this anomaly of a great tax idea sort of shoot through the economy, and we gotta take advantage of it until it's ruined as it were.

Jaime 00:35:19 Yeah. I hear you. \[**awkward pause**\] Yeah. And this is colloquially known as the Trump account. Is that what it's called? It's what I'm seeing.

Patrick 00:35:30 That's why I keep the Trump... the Trump children. It's like people here. Yeah. But yeah. I think if anybody says the Trump account or kids account or something, we'll know what they're talking about.

Jaime 00:35:39 Got it. Yeah. Cool.

Simone 00:35:42 Yeah. Cool. I think that that ends all of the six categories. I think firstly, thank you so much, Patrick. This has been so useful. And just wanted to wrap up with saying, do you have any closing thoughts or statements or key takeaways from our discussion today?

Patrick 00:36:02 The big picture is this. There were some small changes and some big changes that happened with the One Big Beautiful Bill. And what I want people to understand is that regardless of other things in there, there are some truly, truly beneficial tax provisions for business owners in there. The trick is understanding how to line them up. So the takeaway from this, that I hope everybody has, is what you need as a business owner is to give some thought to what success looks like for you truly. Then when you work with somebody, whether it's a planner or Flychain or us or whatever it is, you need somebody who doesn't just look one perspective. Right?

Patrick 00:36:48 Tax people as a general rule are just looking for immediate tax deductions. The key here is to understand that timing of the things that are available on the One Beautiful Bill really maximize the benefit. So think ahead, plan ahead, and work with an advisor. That's the big takeaway.

Simone 00:37:05 Yep.

Jaime 00:37:05 Yeah. That's great.

Simone 00:37:08 And I think if you do wanna go deeper, if you wanna have a conversation with Patrick, please reach out to Flychain. So you can email us at info@flychain.us or just go straight to Patrick who's patrick@uprise.us. And we would love to chat. We will also be hosting a live webinar next month and this will be like a live Q&A so that if you have any specific questions you wanted to ask or follow-up questions, you're more than welcome to do so. So if you're interested, definitely email us, contact us on our website, flychain.us, and we would love to have you at that webinar as well. So thank you so much. Thanks for tuning in to the Flychain Reaction podcast, and we hope to hear from you. Thanks, Patrick.

Jaime 00:37:54 Thanks, Patrick. Thanks for joining.

Patrick 00:37:56 You're welcome.

Simone 00:37:56 Thanks for tuning in to the Flychain Reaction. If you'd like to keep the conversation going, feel free to contact us at info@flychain.us or schedule a demo through our website at www.flychain.us. See you next time.