As a small business owner, there is no way that you want to be paying more than you have to on your taxes. Owners of a small business should be taking advantage of any and every opportunity that can help them reduce the amount of money they have to pay in taxes. Many small business owners are so busy working to build a successful business that they aren’t focusing on their taxes to help reduce their tax bill. Mark Dicus & Company is here to talk about ways that small businesses can lower their tax bills.
How Can Small Businesses Pay Less Taxes?
Following are some of the ways that a small business can pay less in taxes:
– Buy Health Insurance: Paying for healthcare is not a cheap endeavor. It can be downright brutal. However, if you are self-employed and you pay for health insurance, the tax benefits can help lessen the blow. Take advantage of the self employed health insurance deduction.
– Retirement Savings: Saving for retirement is something that takes a lot of focus. It can be easy to spend that money in other areas of your life. However, not only will saving for retirement help you live out your golden years, but it will also help you lower your tax bill too.
– Qualified Business Income Deduction: If you are reporting your business on your personal tax return, you might be able to qualify for the qualified business income deduction, also known as Section 199A deduction. Those that would be eligible include sole proprietors, partnerships, LLCs, and S corporations.
– Business Vehicle: Purchasing a company vehicle can also help to lower your tax bill. There are a couple of different ways that you can deduct your car expenses, the standard mileage rate and actual expenses. Broken down, you can claim a certain amount of money per mile that you drive the vehicle using the standard mileage rate, or using the actual expenses method which allows you to tally all of your to-related business expenses including fuel, maintenance, registration and other details pertaining to your vehicle.
– Depreciation Expense: For many small businesses, there is some equipment that is necessary for you to operate. It is important to understand that as that equipment starts to depreciate, the IRS allows you to claim a portion of your income to offset that reduction in value.
– Tax Planning: It can be hard to keep all of your business expenses straight. Not only that, but you might not have a clear understanding of all the deductions that you could be taking advantage of to help lower your tax bill. In this case, it might be worth your while to hire a tax planning firm to help ensure you’re not leaving any money on the table.
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
At Mark Dicus & Company, we will help make sure you’re utilizing all the deductions that you’re eligible for so that you can keep as much of your income as possible. Call us today!