Have you kicked off your year-end tax planning yet?
As we are approaching the final quarter, it’s the perfect time for strategic tax planning to reduce your tax bill. If you’re a business owner, tax planning isn’t a one-and-done deal—it’s an ongoing process.
Tax Planning Tips
Here are six essential year-end tax planning strategies for 2024 that you should consider:
- 1️⃣ Review Your Business Structure
(see What’s the best business formation setup in this booklet). As your business grows, your structure (entity) may change. - 2️⃣ Maximize Your Retirement Plan: Save on taxes by contributing to a retirement plan. Whether it’s a SERP IRA, Solo 401(k), or a combo of a 401(k) with a defined-benefit pension plan, these are effective tools for slashing your tax bill.
- 3️⃣ Utilize the Home Office Deduction: This valuable tax break can save hundreds, or even thousands, of dollars in taxes each year.
- 4️⃣ Ditch the Shoebox Accounting: Track income and expenses throughout the year using a cloud-based tool your accountant can access.
- 5️⃣ Consider First-Year Bonus Depreciation
80% bonus depreciationon new property acquired and placed in service during 2021. If you’re having a big income year, consider moving up big purchases before year-end (see Should I buy equipment for year-end in this booklet). - 6️⃣ Be Proactive with Income and Deductions: If you expect to be in the same or lower tax bracket next year, deferring some income to 2025 could be beneficial. Conversely, if you expect a higher tax bracket, accelerating income into 2024 or delaying deductions until 2025 might make sense.
💡 More Tips
Don’t miss out on additional year-end tax planning strategies. Download our comprehensive 2024 Year-End Tax Planning Guide for business owners and ensure you’re making the most of every opportunity to reduce your tax liability.
Ready to put these strategies into action?
Schedule a consultation with us today, and let’s tailor a tax planning strategy that works for your unique business needs—because smart planning now means fewer headaches later.