We provide an outsourced accounting service, where we do your bookkeeping, accounting, tax returns & aggressive tax reduction planning.
Here's 11 of the ways we reduce your taxes.
Are you an S-Corp Yet?
Maximizing an S-Corp might save you thousands a year in social security & medicare taxes.
We can help you file an S-Election, or 2553 form, so you can take advantage of the possible S-Corp tax reduction savings.
Before an S-Corp, 100% of your net profit was subject to the 15.3% SE Tax. As an S-Corp, only your salary will be subject to SE Tax.
You must take a "reasonable" salary.
You could save 10% - 60% of your SE Taxes.
Maybe you make $100,000 net, and you're currently paying about $15,300 in SE taxes.
Business owners can utilize "employer contributions" for themselves and their teams. 401k, SEP IRA, SIMPLE IRA & Defined Contribution plans all work
The business can make an "employer contribution" in most plans, which is essentially a straight up write off.
The employer contribution is not subject to the 15.3% SE tax, which means you'll "make" 15.3% off the bat. Then, it will be subject to tax when you withdraw in retirement. * (there's more to this, call us to learn!)
Vanguard & Schwab both have what's called an "Individual 401k", which is available for anyone without statutory employees.
If your kids lawfully engage with your business, doing real work at fair wages, they will have their own tax return. They will be able to use the standard deduction & IRA contributions to save!
- They need to obey the law here!
Remember, kids will file single, and be in a much lower tax bracket than you.
There are stipulations depending on if you're an S-Corp or an LLC, but overall, your minor child can claim the standard deduction and enjoy low tax brackets.
Just a heads up, there are rules to this and you'll need to treat them like a real employee. Let's chat about it!
Rental income is very tax advantaged, and you can use borrowed money to create wealth.
Rental income is not subject to the 15.3% SE Tax.
You'll be able to utilize depreciation to reduce taxes on the income.
Hopefully the real estate appreciates & you'll get a great ROI from an investment where you used the bank's money to purchase.
You can write off the equipment you use in your business.
Rather than let your money get taxed, invest to purchase new equipment.
Remember, newer equipment might create massive productivity improvments.
The government occasionally allows bonus depreciation, where you can write off larger portions of the purchase.
You can deduct your health insurance, utilize HSA & provide fringe benefits to you and your team.
Health insurance is expensive, but it's a very tax-efficient benefit.
You might use HSA accounts as tax efficient benefits.
Create a workplace that people love by providing health insurance and benefits.
Remember, all the cash in your business at the end of the year will "pass-through" and be taxable, don't get caught having unnecessarily high income that pushes you into higher tax brackets.
Maybe you have $5k, or $750k, you better be intentional.
You'll save huge amounts of tax by simply working with a tax planner, like us, to be pro-active with your cash.
We will often monitor your income and tax brackets, so we avoid paying tax in the highest tax brackets.
SEO, Content Marketing, Websites & Advertising can be some of the best write offs (as you create future profits & scalability)
It's often wise to invest into growth tactics for the future, so you don't pay taxes immediately.
You can transform into a highly scalable company when your marketing is on-point.
SEO, Content Marketing, Websites & Advertising can be some of the best write offs (as you create future profits & scalability)
It's often wise to invest into growth tactics for the future, so you don't pay taxes immediately.
You can transform into a highly scalable company when your marketing is on-point.