7 Commonly Used Business Tax Strategies For 2023

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7 Commonly Used Business Tax Strategies For 2023
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• While it might be tempting to overlook tax
  planning in favor of other tasks that may seem
  more important or timely as a small business
  owner, this could be the quickest route to paying
  more in taxes.
• Planning your business taxes with an intelligent
  strategy this may or may not involve the use of
  an accountant or other tax professional could
  help you save big on income taxes, and reduce
  your annual tax bill.
• Below are 7 commonly used approaches to tax
  saving for small businesses

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• Accelerate expenses and defer income
• By delaying the sending out of invoices to the
  first quarter from the fourth, you can slow your
  business income, and by purchasing larger items
  before the year is out, instead of right away,
  you can help capture expenses more effectively.
• Deferring income to the next year, means that any
  taxes paid on it wont be due until the following
  year, and with major expenses listed now, your
  current income can receive a deduction rather
  than income in the future.
• Working with a tax professional can help you time
  your income and expenses effectively.

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• 2. Maximise depreciation
• Helping to reduce a small businesses taxable
  income, the accounting technique of depreciation
  is usually spread out over a period of years, but
  there are federal laws that permit businesses to
  depreciate as much as 100 of property that
  qualifies the year it was purchased. However,
  its worth noting that for any property put into
  service during 2023 and any subsequent years, the
  tax deduction falls to 80 of property that
  qualifies.
• Computers, machinery, vehicles, software and
  equipment may well qualify, but youll need
  expert help to guide you more confidently down
  the depreciation path.

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• 3. Make use of the deduction for qualified
  business income
• In a law identical to the one mentioned above, a
  new strategy now allows businesses to deduct
  their business income by up to 20, but this is
  only applicable for single member LLCs, S-Corps
  and sole proprietorships (pass-through
  businesses, in other words).
• While C-Corps are not entitled to the qualified
  business income deduction as a result of not
  being taxable as a flow-through entity, they may
  be able to change to a S-Corps. However, the
  restrictions typically applied to S Corporations
  in terms of shareholders, may hinder any prospect
  of future growth, so again, expert tax advice is
  advisable.

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• 4. Set up retirement plans
• In exactly the same way as retirement plans can
  yield tax savings for individuals, so can they
  for small businesses, and if you dont yet have
  one, it might be worth talking to your accountant
  or tax service provider about setting one up.
• If youre a corporation owner, you may be
  permitted to contribute as much as 25 of your
  salary to a plan such as a 401(k), which defers
  taxes. If youre a sole proprietor, 20 of your
  earnings may be put into an account such as a
  tax-deferred SEP-IRA.

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• 5. Offer benefits to employees
• Attracting and retaining the best new recruits
  for your business is made easier with benefits
  like health insurance that are company-sponsored,
  or tuition assistance and transportation benefits
  among others. But they can also enable your
  business to reduce its taxable income with a
  deduction. Additionally, offering such benefits
  to employees doesnt increase the cost of
  employment tax.

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• 6. Fund a health savings account
• Health insurance plans that have a high
  deductible, may enable business owners to fund an
  HSA, or Health Savings Account. A common and
  popular strategy for making tax savings, any
  contributions you make to a HAS are able to be
  deducted from existing income, and grow tax-free
  in the account, along with qualified health
  expense withdrawals.

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• 7. Think about relocating
• As some states such as Alaska, Oregon and Montana
  (among others) have business taxes that are
  significantly lower than others, if relocating is
  a possibility for you, it might be worth
  considering.
• For more detailed information about tax saving
  strategies, and to start saving more money in
  taxes as a small business owner, seek help from a
  qualified tax professional, today!

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• At Heyer Inc, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax services Miami. If you
  are looking for an individual accountant in
  Miami, heyer inc would be a right option.