Welcome to part 4 of our series on “Making the Tax Cuts and Jobs Act Work for YOUR Business.” We are often asked how you can maximize tax deductions. Well…
We’re looking at survey results from small business owners and showing you how to navigate past any bad information that’s currently circulating through the financial world…
So you can take full advantage of new tax laws, avoid “tipping” Uncle Sam, and march through tax season with complete confidence.
In the last article, we discussed the question of “How to Guarantee Your Business Won’t Be Hit With a Big Tax Bill From The IRS.”
Now, if you’ve been a part of our community for a while, then you’ve probably heard us say that there’s a 93% chance you’re overpaying on your taxes.
And for a lot of business owners, one of the biggest reasons for overpaying has to do with not taking advantage of every single deduction available to you.
Before we get started, we have…
Garrett Gunderson, our Founder and Chief Wealth Architect here at Wealth Factory, is holding a LIVE tax webinar this Tuesday, March 5th from 12:00 PM – 1:00 PM Central Time (10 AM – 11 AM Pacific, 11 AM – 12 PM Mountain, and 1 PM – 2 PM Eastern).
He’s going to share our new and updated “3×3 Tax Strategy,” show you one of the hottest new opportunities that’s come out of the Tax Cuts & Jobs Act, and most importantly…
Garrett’s going to stay on to answer any questions you have about this series of tax articles, how to legally and ethically “rig” the tax code to your advantage, and any other tax-related questions you might have.
There will be a limited amount of seats, and it’s first-come, first-served, so register your seat for this Special Tax Presentation here.
Now, let’s go back to the idea of maximizing your deductions:
Quickbooks Payroll surveyed 600 small business owners throughout the U.S at the end of 2018 to find out how they deal with tax season and what they think of the new tax laws.
When asked about tax deductions:
The most common tax deductions among respondents who use them were for business supplies (53%) and car and truck expenses (46%).
Here at Wealth Factory, we’re all for paying our full share of taxes. We just don’t think it’s necessary to leave a tip.
So here’s the first problem: business owners have been duped by mainstream “experts” and “conservative” accountants into being afraid of taking certain deductions.
Take the “home office deduction” for example. Some accountants will say that you risk triggering an audit if you take it.
But a great accountant is never afraid to back up their work. And if you have a legitimate home office, then you’re tipping the government and hurting your own bottom line by not taking that deduction.
The second problem is that these 2 most common deductions taken aren’t the most impactful ones!
The first thing your financial team needs to help you with if you’re going to maximize your deductions and minimize your tax bill is to get the right business entity structure.
Certain deductions are limited to S-corps or C-corps, and the first and most important step is getting the right structure for you. If you’re not certain you have the right entity, or you’re in the process of setting one up, be sure to join Garrett on the upcoming live tax webinar.
Once that’s set, here are a couple of big things to look for:
#1: 1099 Self-Employed Team Members
The 1099s you send to other people that you’ve hired for some kind of support in your business are the easiest and most effective kind of expenses to deduct because you’re simply passing the tax liability right along to someone else.
The IRS requires you to send a form 1099 to any person or business who was paid at least $600 and performed a service for your business (or professional self) – such as a web designer, photographer, event/project help, marketing support, book researcher etc.
1099’s are an instant reduction on your tax liability, and a great way to grow your business.
#2: Commonly Overlooked Deductions
And this is just the beginning. We have a complete list of 300 tax deductions in a checklist form (so you can bring it to your CPA) that Garrett will tell you more about on the live webinar as well.
We’ve received a lot of great questions from readers, and we know that there’s still a lot of uncertainty for business owners and their unique situations.
That’s why your first and most important step now is to:
Garrett will stay on to answer your tax-related questions, in person — plus he has some incredible tax resources he’ll be offering.
Attending this webinar live is the best way to ensure a smooth tax season for you and your business, and we’re expecting a full house with limited seating, so register today if you want to get this timely tax info.
That’s it for this week – we’ll see you on Tuesday’s tax webinar.
Build the life you love,
The Builders at Wealth Factory
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