Well Uncle Sam hit us hard with owing nearly 49k in taxes this year. This is my 2nd year in business and I’m learning the hard way obviously. Other than the normal tax deductions what are you doing to help not be hit so hard? Been a hard pill to swallow for us. Looking into buying for rental properties and other real estate holdings. I’m not sure what of the purchase is actually tax deductible though other than the taxes and mortgage interest. The down payment ?

I have yet to find many of these loopholes that I've always heard about. We've been in business 7 years and are now on our 4th CPA firm. We've finally got a good one that actually functions as CPA and a tax advisor. If you don't have the right CPA firm, change.

Buy some cows n put whatever u can on that...biz is tough n taxes suck...I'm fighting 15k now thats been paid but the irs can't keep up with their crap...

Someone I know(not too well) was looking for a method for how he could contribute the Grand Kids college fund and get a tax deduction out of it lol

I can’t elaborate on this site but a change would be needed

Get a good financial advisor that can help you. 401k, ira, other items that can be used tax free. Also, many overlook mileage and expenses that can be deducted.

Not sure what industry your in but, a good accountant should have been ahead of this and making recommendations. New equipment, new company vehicle, etc. If I felt 2020 was going to be a repeat, I'd look at putting on another employee. Being a business owner creates the need for you to wear a lot of hats. Figure out which hat you can put on someone else and hire them. Relieving some stress is like giving yourself a raise.

This. I knew I had found my CPA when I told him I wanted every deductible item I could get that was legal, he told me he would always take the gravel road over the paved road. Congrats on your successful business.

Get a good CPA and save yourself aggravation and problems with the IRS. My CPA is worth every penny to avoid problems and save some money on taxes but there is no magic to save lots on taxes. Still pay taxes. My cpa is also money well spent that saves me time spent on accounting that I can use for marketing and networking.

You could just buy a new $60k truck, and "write it off" and save $10-$15k. Everyone seems to think the truck is "free" because they "wrote it off"

instead of paying taxes on the money, you would reinvest your profit back in your company and use section 179 depreciation to write off part or all of it. your CPA can give you the particulars on your situation, but i work with businesses daily and this is a very common practice when you have a very profitable year. We at the bank can also add this expense back so it doesn't limit your ability to borrow, if the need arises.

You are always gonna pay no matter the CPA if you make a bunch of money you pay a bunch of taxes. Taxation is robbery
Imo. Just wait until Biden gets elected it will get much worse for business owners.

Congrats on a successful year.

Rem270 is right. In most scenarios, write offs normally cost more than they “save”. Yet people act like it’s free money. Get with a creative cpa, and see what current expenses you can write off,
But don’t blow money for “write offs” that you would not purchase anyways, or that the cpa can’t lay out on paper how it will save more than it cost.

^^^^^^^^^ this

That's so dependent on how much you made. If you had $200k profit and your taxes are $50k, congrats, your accountant rocks. If you made $100k profit and your taxes were $50k, then you need to look for more legit writeoffs.

I started meeting with my cpa in November to come up with a plan before the end of the year and that helped alot with write offs etc. We are moving to TX before school starts and I am hoping to find a cpa like him.

It depends on what kind of business your end. We found a CPA that understands the construction world and she has helped us out a lot. But we still have to pay every year but just nat as much as we did with our old CPA

And buying equipment if you don't need it is just wasting money I've tried that and it really didn't work out

I know a guy that gives his employees bonuses by buying an IRA in their name and does it pre-tax which helps both parties. There are ways to save money but in the end, if you pay taxes, it means you made money.

Accelerated depreciation on rental properties is wonderful for the tax bill.

sent u a pm