5 Ways to Save on Business Taxes
Updated: Jun 24, 2021
Helping you save money is what I love to do most - it just happens to be my job, too 🙌
In fact, I might love it more than coffee...and that’s saying something
If you’re a small business owner, you NEED to be looking for ways to save - I mean, you don’t have to, but it’s worth the extra digging, I promise!
Let me help you out with a quick FIVE ways that you can save on your biz taxes:
The Qualified Business Income Deduction: This can be up to 20% of qualified business income (QBI) minus net capital gain for what is called pass-through business owners, a.k.a. LLCs, partnerships, S corporations, and sole proprietorships. The QBI can be taken in addition to the normally allowable business expense deductions. Also, a heads-up: Higher-income individuals may be limited or exempt from this one!
Take Tax Credits to Lower Your Income: Tax credits exist to encourage business owners like you to do good deeds. Let’s say you hire employees (not contractors), provide them health coverage, or decide to take on greener practices within your business.
Fund a Retirement Plan: Set up your retirement plan (and your employees if that’s within your reach) with one that’s recognized by the IRS - think IRAs and defined contribution plans like a 401(k) or a 403(b). Plus, it’s never a bad idea to set yourself up for that post-career life.
Deduct the cost of gifts: Did you know you can deduct up to $25/person of the cost of gifts you purchase for clients, vendors, or team members? Make sure you keep the records that prove the gift was business-related! If you send a client a gift over $25 and post or share about it on social media - that is now an advertising expense and bypasses the $25 rule, cool huh?
Check with a qualified Tax Advisor: This is exactly what I help people with - and not just during tax season.
When I have my eyes in business alongside you, we can look at your unique financial circumstances before you make any spending decisions that could affect your taxes.
Keep in mind, these aren’t ALL of the ways you can save, just a handful to get you started.
Questions for me?
I saved my clients over $1 MILLION FREAKING DOLLARS last year in taxes. So, I know a thing or two; contact me now and let's chat!