10 Of the Best Tax Saving Strategies for Small Businesses

1
10 Of the Best Tax Saving Strategies for Small
Businesses
2

• While taxes can be a nightmare for everyone,
  there are a few strategies small business owners
  can adopt to make the process a little less
  troublesome, and whats even better they can
  actually save you money.
• Check out the following 10 tax strategies and see
  if with a tax professionals help, they can save
  you money and relieve some of the pressure tax
  season typically induces

3

• 1. Take your QBI
• The Tax and Jobs Act created the Qualified
  Business Income (QBI) deduction back in 2018,
  allowing you to deduct 20 from your taxable
  income if your business is structured as a
  pass-through entity (where the business income
  is treated as the personal income of the owners).
  This is applicable for Sole Proprietorships, S
  Corps and Partnerships check with a tax
  professional to determine your eligibility.

4

• 2.Set up a qualified retirement plan
• Qualified retirement plans for you and/or your
  employees, can help you prepare for the future
  and save money on your business taxes.
  Tax-deferred plans like IRAs, 401(k)s, or 403(b)s
  enable you to hold off on paying taxes on those
  contributions until you withdraw them later.
• 3. Avail applicable tax credits
• Business Tax Credits can help you save money, and
  some that you may be able to take advantage of,
  are listed below

5

• Employee retention
• Sick leave/family leave
• ADA accommodations
• Energy saving
• Hiring from certain categories
• 4. Track expenses
• Tracking your expenses allows you to monitor
  spending more closely, find errors and take
  advantage of deductions at tax time. Keeping good
  records of what you spend your money on, will
  help you justify any deductions you claim on your
  taxes.

6

• 5. Deduct Equipment and Vehicle Purchases
• For purchases made that are beyond those related
  to the regular operation of your company, such as
  new equipment or company vehicles, under Section
  179 of the U.S. Tax Code, small and medium-sized
  businesses can deduct significant portions of
  large expenses.
• 6.Make donations
• Upgrading certain items, such as office furniture
  and equipment, can give you tax deductions should
  you choose to donate them to a charitable
  organization.

7

• 7. Give gifts
• If youve given gifts to customers and vendors,
  youre able to deduct as much as 25 of their
  cost on your tax return.
• 8. Write off old business debts
• Save money by writing off bad debts on your
  taxes, if youre not a cash basis taxpayer.
• 9. Use losses to help save you money
• Many small businesses operate at a loss in their
  first few years of trading, but you might be able
  to use those losses as a net operating loss (NOL)
  deduction on future income once you start making
  a profit.

8

• 10. Pay more in benefits
• Rather than giving your employees a raise,
  consider contributing more towards their premiums
  if you have an employer-sponsored healthcare plan
  in place for them. With you paying less in
  employment taxes, and them having less taken out
  of their checks for healthcare, it can be
  advantageous for both parties.
• While some or all of these tax saving strategies
  might apply to you as a small business owner,
  its always best to check with a tax
  professional and who knows, they might come up
  with even more great ways for you to save money
  and sail through tax season!

9

• At Heyer Inc, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax services Miami. If you
  are looking for an individual accountant in
  Miami, heyer inc would be a right option.