Weekly Tax Tips September 16th

Trivia Question❓

Answer at the bottom of the newsletter

In a high-inflation economy, growing your business while cutting taxes requires strategic tax planning that supports both immediate needs and long-term sustainability. Inflation increases operational costs and squeezes profit margins, making it even more crucial to implement tax-saving strategies that free up capital for growth.

One key tactic is maximizing deductions. Deducting business expenses such as salaries, benefits, and equipment purchases can reduce taxable income, leaving more resources for reinvestment. Section 179, for instance, allows businesses to deduct the full cost of equipment and software in the year of purchase, accelerating growth without increasing tax liabilities.

In addition, businesses should explore tax credits, such as the Research and Development (R&D) tax credit, which incentivizes innovation and can offset expenses in developing new products or services. These credits provide immediate cash flow while fueling long-term growth.

Structuring your business properly is another long-term tax planning tool. Choosing the right entity—whether an S-Corp, LLC, or C-Corp—can significantly reduce your tax burden, especially as your business grows. For example, S-Corps allow income to pass through to owners’ personal tax returns, avoiding double taxation.

Lastly, consider deferring income and accelerating expenses to shift tax liabilities into future, potentially lower-tax years. Contributing to retirement plans like 401(k)s can also reduce taxable income now while securing long-term financial growth for both the business and its owners.

With well-planned, long-term tax strategies, businesses can maintain profitability and sustainability, even in a challenging inflationary environment.

Are you the parent (or grandparent) of a college bound high school sophomore, junior or senior?

It's been all over the news, the mess that the government has made of financial aid thanks to the FAFSA Simplification act of 2023.

How do you make sure you get the most free money possible?

How do you maximize your child’s chances for admission?

If you are the parent (or grandparent) of a college bound high school student, fill out the form to register and join us for a live, virtual dinner college financial aid and admissions workshop, where we will deliver dinner (or lunch if you are on the west coast) to your door for the first 30 people who register. 

The first ten families that show up live for the training will win another prize valued at $197 each!

Date: Thursday, September 26th

Time: 6-8PM Eastern time

Place: Zoom

Look for the instructions on how to claim your free meal, and your link to attend live in the confirmation emails you get.

Register here

💡 Answer to Trivia Question: