Insights

Beyond the Basics: Practical Tax Planning for Small Businesses

 
Once you’ve got the basics of record keeping, deductions, and your business structure down, you can take steps to make informed decisions that may reduce your tax liability and support your business goals. Practical tax planning helps you look ahead and make those decisions before year-end.

 

 

  • Plan for Retirement While Reducing Taxes
    • Contributing to a SEP IRA, Solo 401(k), or SIMPLE IRA can help you save for retirement while potentially providing tax benefits, depending on the type of plan and your situation.
    • For more information about retirement plans, click here.
 
  • Manage Income and Expense Timing for Tax Efficiency
    • The timing of income and expenses can affect your tax liability from year to year.
    • Reviewing your expected income and expenses before year-end can help you decide whether there are opportunities to shift income or deductions between tax years.

 

  • Maximize Deductions for Vehicles, Equipment, and Other Capital Assets
    • Purchasing vehicles, equipment, and other capital assets may create tax deductions, and rules like Section 179 and bonus depreciation may allow you to deduct more of the cost upfront.
    • The tax savings should be considered alongside whether the purchase makes sense for your business.
    • For more information about asset depreciation, click here. 

 

  • Take Advantage of the Research & Development (R&D) Tax Credit
    • If your business invests in improving products, processes, or technology, you may qualify for the R&D credit, which can reduce your tax liability and help offset certain costs associated with qualified research activities.
    • For more information about the R&D Tax Credit, click here.

 

 

 

Disclaimer: This content is for informational purposes only and does not constitute accounting, tax, financial, investment, legal, or other professional advice. Links to third-party websites are provided for convenience only. Schryver and Associates, PLLC does not control, endorse, or guarantee third-party content, security, or availability and is not responsible for any resulting loss or consequences.