As a business owner, it’s important to be proactive about your taxes. There are many strategies that you can use to defer taxes and keep more money in your pocket. Here is a closer look at some of the best ways to do this. Keep in mind that you should always consult with an accountant or tax specialist to see what would work best for your business.
Structure Your Business the Right Way
Many business owners are looking for ways to defer their taxes, and one of the best ways to do this is to structure their business the right way. By setting up their business as an LLC or a corporation, business owners can put off paying taxes on their profits until they receive the money. This can be a great way to keep more of your hard-earned money in your pocket, and it can also help you to avoid paying taxes on income that you may never actually receive. So if you’re looking for a way to save on your taxes, be sure to talk to your accountant about setting up your business the right way.
As a business owner, you’re always looking for ways to save money and grow your business. One way to do this is to take advantage of retirement plans that can help you defer your taxes. A cash balance plan lets you save far more than a 401(k) does. This type of plan can be a great way to build up your nest egg while also reducing your tax bill. So if you’re looking for a way to save money and grow your business, consider using a cash balance plan to help you achieve your goals.
Section 179 Accelerated Deductions
Business owners looking to defer their taxes may want to consider taking advantage of Section 179 Accelerated Deductions. Section 179 of the IRS tax code allows businesses to deduct the cost of certain types of property and equipment that are purchased or leased during the tax year. This deduction can be used for furniture, fixtures, office equipment, machinery, and software. To qualify, the property must be used for business purposes and it must be placed in service before the end of the tax year. The amount that can be deducted is capped at $1 million, and the deduction phases out at higher levels of investment. However, this deduction can provide significant tax savings for businesses that are making capital investments.
There are many strategies available to business owners who want to defer their taxes. The best strategy for your business will depend on your specific circumstances. However, some of the most popular strategies include setting up your business as an LLC or corporation, taking advantage of retirement plans, and taking advantage of Section 179 Accelerated Deductions. Consult with a tax specialist to find the right solution for your business.
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