4 Year-End Money Moves for Middle to High Income Entrepreneurs
If you are a Middle to High Income Entrepreneur, you are most likely looking for some strategies you can take to lower your taxes.⠀
- Clean Up Your Bookkeeping – whether you’ve spent a lot of money this year or not, if you’re bookkeeping is unorganized, you are leaving money on the table. Unorganized records results in you overlooking a lot of potential business tax deductions (BTDs). BTDs help to reduce your gross revenue earned in your business. *Reduced revenue reduces your tax liabilities*⠀
- Make Your Large Purchases before Dec 31st – Have you heard of Section 179? It is a tax code that allows business owners who are not incorporated to deduct the entire cost of most new equipment up to $1.02 million of the first $2.55 million of property you place in service before Dec 31st.⠀
- Make use of the Qualified Business Income Deduction – if your “taxable” income is under $160,700 (or $321,400 for Joint tax filers) you may qualify for the QBI which is a 20% deduction of your business income (this is why it’s important to make sure you get all those qualifying tax deductions because they can help to get your “taxable” income under the threshold.⠀
- Put money into your Retirement – Self-employed taxpayers and all small business entities can make contributions to your retirement plan. If you don’t have a plan in place, there is still time to get one set up. In some cases, your retirement contributions will be a business tax deduction.
Year-end tax planning could make a difference in your tax bill.
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