Don’t get bankrupted by high tax bills this year. Here are seven ways you can reduce what you owe in taxes, and get more tax breaks.
Being Tax Smart Is More Important Than Ever
It’s been a wild couple of years for small business owners, and it is highly likely that there are more twists and turns ahead. In order to survive, it is essential to stay out ahead of taxes, and use them to your financial advantage.
With hyper inflation across everything, including taxes, it is more important than ever to maximize tax savings.
Here are seven ways to do it. Just make sure you consult professional tax advisors for personalized advice.
1. Property Tax Reductions
The chances are very high that your property tax bills are flawed and overinflated. Use Property Tax Adjusters Ltd. to challenge and reduce your business and personal property taxes.
2. Home Office Deductions
Most people have now switched to working from home. Make sure you claim that tax deduction. You may even want to expand on your home office and get a larger break for next year. Or if you’ve been shopping for a larger home, keep in mind that the space you dedicate to home workspace can be tax deductible.
3. Tax Saving Retirement Accounts
Be sure that you are fully maxing out your retirement account contributions for last year and this year. Small business owners have several options, including traditional IRAs, Roth IRAs and Solo 401ks.
Depending on which you choose, you can enjoy tax savings now, or a lifetime of tax free investment returns.
4. PPE & Medical Expenses
Everyone has had extra healthcare related expenses over the past couple of years. If you’ve had surprise medical bills after being in the hospital for COVID, have invested in PPE, like face masks, for yourself and your business that can be deductible too.
5. Vehicle Deductions
There are a couple of ways to reduce your tax liability based on your mode of transportation. This can include mileage and car payments. Classes of vehicles also qualify for special extra tax deductions.
6. Take Your Clients Out To Eat More
Food and entertainment expenses are now reportedly 100% tax deductible. You’ve got to eat anyway. So, take more clients and other business partners out to eat at restaurants more and get the deductions.
7. Charitable Giving
Whether you are donating cash, vehicles or even real estate, this can all help you get tax credit for your giving and generosity.