Cutting-Edge Tax Reduction Techniques for Business Owners
Today’s theme: “Cutting-Edge Tax Reduction Techniques for Business Owners.” Welcome to a practical, forward-looking guide packed with strategies, stories, and prompts to help you lower taxes while growing smarter. Dive in, bookmark your favorites, and subscribe for fresh, actionable insights tailored to ambitious founders and operators.
Pass-Through Entity Tax Elections (PTE) to Bypass SALT Caps
Many states let partnerships and S corporations elect a pass-through entity tax, effectively restoring state tax deductibility at the entity level. This can meaningfully reduce federal taxable income for owners. Ask your CPA about timing, credits, and state conformity.
S Corporation Compensation Calibration for Smarter Savings
Setting reasonable salary and shifting the rest to distributions can trim payroll taxes without inviting scrutiny. Document roles, comps, and industry benchmarks. Revisit annually as profit grows to keep the balance defensible and tax-efficient.
Next-Gen Credits and Incentives You Might Be Overlooking
You don’t need lab coats to qualify. If you improve products, processes, or software through experimentation, you may claim the research credit. Track hypotheses, iterations, and costs. The credit offsets income tax—and in some cases, payroll tax for startups.
Depreciation Mastery: Accelerate Deductions Without Derailing Cash
Reclassify components of buildings into shorter lives, unlocking accelerated deductions and bonus depreciation. Even leasehold improvements can benefit. Coordinate with lenders and investors so tax timing doesn’t conflict with covenant or distribution expectations.
Depreciation Mastery: Accelerate Deductions Without Derailing Cash
Section 179 can be targeted and may apply to used assets, while bonus depreciation sweeps broadly. Phase-downs matter. Model both against current profits, future income, and state conformity to select the most profitable path each year.
Owner Compensation and Accountable Systems That Lower Taxes
Formalize reimbursements for business-use expenses—mileage, home office, supplies—so they’re deductible to the company and non-taxable to you. Require timely substantiation. A simple policy can save thousands and reduce headaches at year-end.
Owner Compensation and Accountable Systems That Lower Taxes
In the U.S., limited days of home rental to your business for legitimate meetings can be tax-free income to you and deductible to the company. Document agendas, fair market rates, and attendees. Keep it prudent and purposeful.
