You almost certainly know that you can write off the mileage for business use of your car. That advice is still true. A nice bonus is that it is easier than ever to track your business mileage with a variety of smartphone apps available. Mileage, however, isn’t the only automotive write-off that you should be pursuing. If you use your vehicle for anything work-related, there are deductions that you might be missing out on. Lease payments, oil changes, insurance, repairs, and even car washing and polishing could be written off. Don’t fall for tax myths, fuel your savings with automotive write-offs.
Taxes may be the least favorite topic for business owners. The saying goes there are only two things in life that are certain—death and taxes. For a business, there are just taxes. It doesn’t matter who you are, how influential you are, or how much money you earn, everyone still has to pay taxes. It’s natural that business owners would want to pay the least amount of taxes possible. That usually happens through tax evasion, tax avoidance, or strategic tax planning. As a business owner, it’s important that you understand which one of these methods is the right one. Learn the difference between strategic tax planning, tax avoidance, and tax evasion.
For business owners, lower taxes are likely a gift that you’d like to see under the tree. Thankfully, it’s not too late to add it to your holiday wish list. It even has a name, strategic tax planning. Strategic tax planning is a gift that won’t fade once the newness wears off, and it’s one that continues to give to your business year after year. Strategic tax planning could save your business $20,000, $50,000, even $100,000 in taxes every year. This year stop wasting money on taxes you don’t owe. Instead, give yourself the gift of strategic tax planning, and get rewarded year after year with lower taxes.
Finding tax and investment advisors who give you proactive advice for saving on your taxes probably feels like an elusive search. The truth is that not every tax professional, in fact, the majority of them, do not do any proactive planning. Most CPAs are not even trained to do this level of tax planning. If you’re ready to leverage the benefits of the tax code and stop spending money unnecessarily, then you need a tax professional who understands business owners. At Financial Gravity we are versed in the minutiae of the tax laws, and we can help you keep more of your money with strategic tax planning.
There are many advantages to giving to charity. While doing good is in and of itself its own reward, it also probably makes you feel good. Reaping the tax benefits from that charitable giving has also been a nice perk. While taxes might not have been at the forefront of your mind when providing assistance to others, the tax deduction for charitable contributions has typically helped shave money off your tax bill if you itemize instead of taking the standard deduction. Under the new Tax Cuts and Jobs Act, the deduction for donations is unchanged, but the bar is higher with the nearly doubled-standard deduction. ‘Tis the season for charitable giving, so make sure you do it correctly and stay on the nice list.
You might think of spring as “tax season,” but that is a misnomer for small business owners. In reality, tax season should be thought of as tax filing season. Yes, it’s important to get your tax return filed on time, but the need for tax planning is really an omnipresent one. Filing your taxes is merely the end of a year-long cycle where you should see results of everything that happened in the past year. There are hundreds of opportunities to minimize your taxes throughout the year, but it starts now with a proactive tax strategy. If you want to pay less on your taxes, you need a tax professional who works for you year round.
You’ve likely heard of a little thing called Black Friday. The day after Thanksgiving is also known as the biggest shopping day in the United States. Stores offer major markdowns, mind-blowing doorbusters, and rock-bottom prices. If you’re a die-hard bargain hunter who goes to great lengths to score the best deals and deepest discounts, Black Friday is where you shine. People stand in line hours before the stores are opened, to grab the bargains of the year. It’s clear that Americans like to save money where we can. So, what if there were a Black Friday sale on taxes? There is, and it’s called strategic tax planning.
This scenario will probably sound familiar. Your accountant takes the information you provide to them, they put the right numbers into the right boxes on the right forms and get them filed by the right deadline. It’s like a checklist: check, check, check, and check. Once they have completed your tax return, they move along to the next return checklist and start the process over again. Now, there is value in recording history, and it is very important to do it correctly, but at the end of the day, you want to know more than just how much you owe. You want to know how to pay less in taxes each and every year. That is the very reason why your tax professional should do more than just taxes.
Choosing the right business entity involves all sorts of tax considerations. Even though a sole proprietorship is the easiest business type to start, it might not be the best type of business for you. Too many business owners are operating with entities that may have been appropriate when they were established, but aren’t working as effectively now. Let’s go over Sole Proprietorship vs LLC and see which business type is best for you and best for your business.
Strategic tax planning is an important part of building and preserving your wealth. There is a saying that says, “it’s not what you make that matters, it’s what you keep that can make a difference.” Don’t leave money on the table, wasting money on taxes that you don’t legally have to pay. For many people, taxes are your biggest expense. It makes sense to focus on saving money where you currently spend the most. Strategic tax planning guarantees results, but those guaranteed results start with planning. When it comes to creating and managing wealth, the greater we can control and limit taxes during your lifetime, the greater resources you’ll have for your family and the bigger your legacy will be that you can leave behind, positively impacting the people and causes that matter to you. We can show you how you can use strategic tax planning to retain more of your wealth.
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