satoshipacioli on Nostr: Key tax strategies for business owners: 1️⃣ Choose the right business structure ...
Key tax strategies for business owners:
1️⃣ Choose the right business structure – S corporations can save thousands in self-employment taxes for those netting over $100,000. Optimize your balance of wages and distributions.
2️⃣ Leverage Section 179 – Deduct the full cost of qualifying equipment purchases in the year you buy them, reducing taxable income and freeing up cash flow.
3️⃣ Track expenses better – Organized bookkeeping ensures you capture every deduction, from travel to office supplies. Start now to avoid rushing and missing potential write-offs.
4️⃣ Defer income – Delay issuing invoices so payment hits in January. This reduces taxable income for 2024, especially useful if you expect to stay in the same or lower tax bracket next year.
1️⃣ Choose the right business structure – S corporations can save thousands in self-employment taxes for those netting over $100,000. Optimize your balance of wages and distributions.
2️⃣ Leverage Section 179 – Deduct the full cost of qualifying equipment purchases in the year you buy them, reducing taxable income and freeing up cash flow.
3️⃣ Track expenses better – Organized bookkeeping ensures you capture every deduction, from travel to office supplies. Start now to avoid rushing and missing potential write-offs.
4️⃣ Defer income – Delay issuing invoices so payment hits in January. This reduces taxable income for 2024, especially useful if you expect to stay in the same or lower tax bracket next year.