Trivia Question❓
What type of depreciation allows business owners to write off the full cost of qualifying property and equipment in the year it is placed into service?
Answer at the bottom of the newsletter
- Growing Business Cutting Taxes
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- Weekly Tax Tips October 14th
Weekly Tax Tips October 14th
Weekly Tax Tips
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Accrual vs. Cash Accounting: Leveraging Timing to Optimize Tax Liability and Cash Flow |
When it comes to managing finances and taxes, businesses must decide between two main accounting methods: accrual and cash accounting. The choice between these can have a significant impact on tax liability, cash flow, and overall business growth. Under the cash accounting method, income is recorded when it is received, and expenses are recognized when they are paid. This method is straightforward and provides a clear view of the company's cash flow. However, it may not always reflect the true financial health of the business, especially if payments are delayed or expenses are deferred. Cash accounting can result in fluctuations in taxable income, making it difficult to predict tax obligations accurately. In contrast, the accrual accounting method records income when it is earned and expenses when they are incurred, regardless of when cash is exchanged. This approach allows businesses to better match revenues with related expenses, providing a more accurate picture of financial performance. By managing the timing of income and expenses, businesses can smooth out their taxable income over the year. For example, a business can record expenses for upcoming projects now to reduce taxable income in the current year. Similarly, businesses can defer recognizing revenue until the next tax year if cash flow allows. By aligning expenses and revenues more precisely, accrual accounting provides businesses with better control over their finances, improving cash flow, and ultimately helping them reinvest in growth. This method is especially beneficial for businesses with long-term projects or significant seasonal fluctuations. |
You Are Invited! |
Make Your Funeral A Teaching Moment Stan Miller is a nationally recognized estate planning attorney, a #1 Amazon best-selling author, the co-host of the Your Life Your Legacy podcast, and one of the cofounders of Wealth Counsel, the largest estate planning software program used by estate attorneys. On this educational lunch and learn, Stan will share: Your death is an occasion to share your wisdom, life lessons and some of the stories of your life many people don’t know. This is an opportunity that should not be wasted. The people who are most important in your life will be there. Their children, and perhaps their grandchildren, will also be there. For a few hours, you will be the focus of their attention. You can make this a powerful teaching moment. Register now and learn how to Make Your Funeral A Teaching Moment Your lunch instructions will be in your confirmation email and text, so make sure to enter your correct email and cell phone numbers. Date: Thursday, October 24th, 2024 Time: 12-1PM Eastern Place: Zoom Register here |
Attention High Income Professionals & High Net Worth Business Owners: Are you tired of watching your hard-earned income vanish into taxes every year? If you’re a business owner or a high-earning professional you know the frustration of sending checks to the IRS. But what if I told you there’s a legal, proven strategy that could help you reduce your taxes by up to TEN times your investment while still earning a targeted 18% annual return on your money? It may sound too good to be true, but it’s a strategy that’s transforming how high-net-worth individuals like you approach their finances, and it’s backed by a little-known sections of the IRS tax code: Section 168k and Section 179. But here’s where it gets even better this isn’t just about tax savings. By using this strategy, you’re not only cutting your taxes but you’re also securing a targeted 18% annual return on your investment. That’s right—you save money, and your money works for you, growing year after year. And there’s more. You’ll get your principal investment back at the end of FIVE years all while continuing to enjoy those reduced taxes and annual returns. Business owners and professionals across the country are already benefiting from this strategy, and it’s completely legal and in compliance with all IRS regulations. This isn’t some loophole that will get you in trouble It's a smart, strategic financial tool that you can leverage to maximize your wealth. During this session, you’ll learn how to:
Date: Friday October 25th, 2024 Time: 12-1PM Eastern Place: Zoom Register here |
💡 Answer to Trivia Question: Bonus Depreciation – Bonus depreciation allows businesses to deduct 100% of the cost of eligible assets in the year they are purchased, helping to reduce taxable income immediately. |