Skip to main content

5 Huge Tax Saving Strategies

By December 16, 2020Tax Strategy, Taxes

If you’re sick of being stuck paying a lot in taxes and are looking for some strategies to keep more money, then review these top 5 huge tax saving strategies and take action right now.

 

Paying attention to these as a business owner will not only make you a lot of money right now, but it will also grow your bank account perpetually, remove the worry of just getting by with your finances, allow you to do more things you like, all without putting in any extra work.

 

Business Structure

 

This is one of the most important aspects to help you protect your business AND save a lot of cash by not overpaying the IRS with their sticky hands. There are various business structure options, some better than others for owners. We tend to stay away from “always” or “never”, so in our experience usually an S-Corporation is the best entity for a business owner to protect your income and minimize tax obligations.

 

Deductions = Friends

 

When you’re spending $1 ask yourself if it is in anyway related to your business. Chances are there are quite a few expenses tied to your business. Those small deductions add up quickly and will only add to your tax savings. Deduct expenses you’re already making and start using your business for those purchases.

 

Keep Records

 

We know this sucks and can be quite tedious when you do get yourself to do it. But without detailed and up to date records you will forget about deductions and end up paying more in taxes. And as we’ve established, you won’t get it back from the IRS. At minimum do it once a month on a spreadsheet. For a better option that has been effective for owners to do is to do it twice a month using a software program.

 

Travel More

 

Deduct personal travel. Yes, you really can. The huge caveat, though, is you have to have a predetermined plan to conduct business or have some type of business activities, then the trip can be deductible. Even with the entertaining activities on the side. Make sure you plan ahead of time and set some business meetings or activities around your personal plans and you are good to deduct all expenses related to the trip.

 

Rent Like A Boss

 

Rent your house out to your business and hold regular meetings. You can deduct the rent expense from your business, but you don’t have to report the rent payments you receive to you personally. How much? Average is around $15,000 that comes to you in rents that you won’t pay tax on.

 

Most of these huge tax saving strategies don’t require extra work on your part. Set yourself up right and your savings will keep coming, year after year.

 

Schedule a FREE planning session to discuss specific ways you can start saving money now and increase your bank account.

 

Follow us on…

Facebook

LinkedIn

Instagram

Twitter

Leave a Reply