Unless you’re in the tax industry yourself, you might think that business taxes are dull and boring, but still a necessary evil.
But it doesn’t have to be this way: you can look at each tax cycle as a new opportunity to save more money.
We don’t mean cutting corners or trying to get away with not paying what you owe. What we mean is challenging yourself to look for ways to owe less. This could be everything from more items to deduct to tax credits. Enough of both of these can combine for decent savings, but not everyone realizes that are all sorts of options for personal and business tax deductions.
Some of these include:
- Charitable giving. Charities and non-profits always appreciate cash donations, but they also appreciate other items, which can be deducted. For instance, your company can donate unneeded supplies and equipment to a local charity. Some non-profits may welcome a donation of a vehicle if you’re replacing your fleet. Or if your office is performing routine software or hardware upgrades, charities might appreciate your older equipment.
- Real estate. Companies with multiple properties may be able to find some reductions, including property tax payments, consolidating their semi-annual tax payments into one, or paying an extra tax payment each year. Likewise, adding at least one extra mortgage payment a year means more interest that can be deducted plus less time on your mortgage.
- Vehicle fees. Depending on your state, you may be able to pay based on the value or the weight of the car. Future fees can be a factor when shopping for cars for your company, especially if your goal is saving money in the long run. Some states also allow you deduct registration fees, especially for certain types of cars, like ones with improved fuel efficiency.
- State taxes. If you do business in a state that requires tax or has a location there, you may be able to deduct state income or tax payments.
In all cases, be sure to consult with a tax professional. For more financial strategies visit Purevue Capital.