Tax planning can be a big help for your business. Some tax tips that can help defer taxes include accelerating expenses and deferring income. If income is deferred until the next year, taxes won’t have to paid until that year. Using the qualified business income deduction if your business is qualified can increase expenses instead of depreciating them out. Fund your retirement plans and employee health insurance plans, they can offer great tax deductions. Some states offer none or a smaller income tax rate. Maybe consider moving to a cheaper income tax rate state and save a great deal.
Key Takeaways:
- Although you generally want to be able to deduct expenses now and delay income until later, your ideal tax strategy will depend on large part on your future outlook.
- The 2017 tax bill allows businesses to deduct as depreciation the whole cost of many types of equipment.
- Pass-through businesses — but not large corporations — can take advantage of the qualified business income deduction.
“Business can slow income by delaying sending invoices from the fourth quarter to the first quarter.”
Read more: https://finance.yahoo.com/news/tax-planning-strategies-business-owners-171830626.html
