Every single one of us wants to save money on taxes. The problem is, most of us don’t know how or we wait too long to take advantage of tax saving strategies that can make a big difference to our bottom line.
If you’re ready to save money – be ready to act now. Consider implementing these three simple actions before the end of the year. They can literally save you thousands on your taxes.
1. Meet with your tax advisor now – don’t wait until the new year or even after the holidays.
Be prepared to provide year-to-date income and expenses PLUS projections for both through the end of the year. Make this appointment now so that you have time to strategize.
2. Open the right kind of retirement account and/or a Health Savings Account (HSA).
While you don’t need to fund it now, you do need to open it before the end of the year if you want to be able to fund it with tax-free income that will impact this year’s taxes.
Speak with your tax advisor to find out what kind of retirement account and/or Health Savings Account is right for you. If you qualify for a Health Savings Account, get that open ASAP, even if you don’t fund it immediately.
3. Live like an entrepreneur.
Consider how to maximize your deductions this year or whether you should strategize to take advantage of them next year (if next year will be a bigger tax year) and do things like:
- Hire your children – Shelter up to $5,950 by hiring your kids in your business and they don’t pay taxes on that income.
- Hire a coach – Bonus your team and/or have an end of the year party for your clients to get your income down this year for tax purposes while building long-term value that will result in increased income down the road.
- Transform out-of-pocket expenses into deductible business expenses – Structure them wisely, such as getting yourself booked to speak in the next place you want to take a vacation.
As a Business Attorney, I meet with my clients and their tax advisor at year-end to strategize based on the overall picture. If you would like this kind of support, call us today or CLICK HERE to schedule a consultation with our business attorney. Our office is conveniently located in Modesto, California and services clients throughout the Central Valley and Bay Area, including Stockton, Merced, Santa Clara, San Jose, Oakland, Pleasanton, Tracy, and Manteca.