Is “Never Too Late” A Lie?
In some aspects of life, yes, yes it is.
Nonetheless we are only going to talk taxes today, and it’s never too late to get smarter about money. It’s also not too late for you to save a lot this year. At ISCPA, we value logic, honesty, and making the numbers work in your favor through proactive strategical planning. If you’ve procrastinated on tax planning and accepted that your 2023 taxes will be a new and disappointing American Horror Story with the IRS, we have good news for you. With our eyes on October, we assure business owners that you can still win this tax season.
Yes, you read that right! There’s still time to take action and reduce your tax liability. Let’s dive into some practical steps you can take this October to make a significant impact on your tax bill.
Maximize Retirement Contributions:
Start by considering your retirement accounts. Contributing the maximum allowed amount to tax-advantaged options like a 401(k) or SEP IRA can lower your taxable income substantially. Plus, it’s a smart way to invest in your future.
If you anticipate higher income for this year, you can accelerate deductible expenses. This might include making necessary equipment or supply purchases before year-end. By doing this, you can reduce your taxable income for 2023.
Business Structure Review:
Is your current business structure the most tax-efficient for your situation? Consult with a tax advisor to explore your options. Changing your business structure could lead to significant tax savings.
Explore Tax Credits:
Certain industries and activities qualify for tax credits that can put money back in your pocket. Research available tax credits and take full advantage of those applicable to your business.
Utilize the QBI Deduction:
If you’re eligible for the Qualified Business Income (QBI) deduction, ensure your business income and deductions are optimized to maximize this valuable tax break.
Consider making charitable contributions before the year’s end. Not only is it a noble endeavor, but it can also provide tax deductions. Donating appreciated assets, such as stocks, can have even more substantial tax benefits.
Review Estimated Tax Payments:
Make sure your estimated tax payments are on track to avoid underpayment penalties. Your tax advisor can help you calculate the correct amounts.
Consider Hiring or Investing:
Depending on your business’s needs, think about hiring employees or investing in equipment that qualifies for immediate expensing. Section 179 of the tax code can be a game-changer here.
Don’t Forget State and Local Taxes:
Explore any state or local tax incentives or credits that may apply to your business. These can vary widely by location.
Consult with a Tax Planning Specialist:
Note the emphasis on an accountant that specializes in tax planning. Aggressive tax mitigation is an art meant for the skilled and bold at heart. Starting a new tax plan late in the year can feel like a delicate condition for you and your finances. The most crucial step is consulting with a specialist like Iryna Stepanchuk, CPA Firm.
So, what’s the next step? Take action now! You still have time to make a substantial impact on your 2023 tax returns.
Our team at ISCPA is here to help you evaluate your circumstances and jumpstart a tax savings plan that can transform your 2023 tax returns. We understand that every business is unique, and our expertise can make a substantial difference in your financial well-being.
Don’t wait until the last minute to tackle your tax planning. Reach out to us today to schedule your free consultation. Let’s work together to unlock tens-of-thousands in tax savings for you this year. Remember to ask about our guarantee!