Date: November 12, 2021
Our Top Tax Planning Strategies for the End of The Year
As a business owner, you want to do everything you can to avoid overpaying taxes. With the new year approaching quickly, you may be wondering what opportunities there are to help you save money and pay less to the tax man. You may not realize that there are many moves you can make from a tax planning standpoint that help you BEFORE the end of this year. Read more for our top tried and true strategies that will help put those hard-earned dollars back into your pocket.
Would you rather write a large check to the IRS or keep that money for your retirement? The answer is a no-brainer. One of the best ways that small business owners can reduce their taxes is by establishing a retirement plan. You can contribute as much as 20% of your earnings (up to $58,000) as a self-employed business owner into a SEP IRA, and you have until April 15th to make the contribution. A Solo 401k offers similar benefits, if your spouse also works in your business with you, they can be included, which doubles the amount you can contribute.
A very common mistake we see a lot of taxpayers make is foregoing the home office deduction for fear of triggering an audit. This is not a real risk – as long as you have your financial affairs in order you would be shooting yourself in the foot not taking legal deductions that you are entitled to. If your finances are lacking clarity, we can help you with that, so you don’t over pay in taxes.
Having a trusted advisor in your corner makes for a much more stress-free experience. Don’t be one of the many taxpayers that fall into a procrastination pit and wait until the end of the year again – be proactive and you can pay less tax. If you need any help navigating the complicated tax codes, contact one of our tax strategists for a complementary assessment so you can pay less tax next year.