Lowering Your Business’s Taxes
Paying taxes is one of those unavoidable expenses that every business owner faces. Not only are you required to pay; you must pay in a timely manner to avoid expensive tax penalties. While taxes are mandatory, the government does allow businesses some leeway in adjusting the amount paid. If you’re seeking ways to lower your business taxes, CPA Solutions offers expert Orlando tax services that can save you a bundle.
We’re familiar with various tax deduction strategies that may apply to your business situation. With some good strategic planning on your part, you can keep more income in your bank account instead of handing it over to Uncle Sam.
Choose an Alternative Business Structure
If you currently have your business structured as a sole proprietorship or LLC, you may want to consider changing to another type of business structure which offers more tax benefits. Carefully consider various options to see if such a switch is a good idea for your company. For a professional opinion, contact us.
Use Deductions Wisely
There are numerous deductions that can save your business money. However, it can be tricky figuring out if you qualify for specific deductions. For example, a business that is new or one that hasn’t earned a profit can take advantage of depreciation. Profitable businesses can deduct items such as equipment and vehicle expenses.
Set Up an Accountable Plan
An accountable plan is an employee reimbursement program set up in accordance with IRS guidelines. Depending on how the plan is set up, your employees are reimbursed for expenses such as travel, meals ,and equipment used on the job, and these expenses are not considered taxable income. These plans also require employees to return excess allowance payments to your company.
Give Employees Tax-free Fringe Benefits
Fringe benefits for employees make the work environment extremely attractive. Even better, these plans are tax-free, which is why it makes sense to offer them. Typical benefits include health insurance, retirement accounts, college education assistance, long-term care, and mass transit passes.
Take a Loss on Property
If your business owns property it no longer needs, declaring the property as a capital loss is a smart choice. This saves money because it becomes a standard business deduction.
Implement a Year-End Strategy
We recommend putting a year-end plan in place that allows your business to reduce taxes based on savvy accounting strategies such as delayed billing.
The above suggestions are just a few of the ways in which your company can reduce its tax burden with the help of our Orlando tax services. Give CPA Solutions a call at (407) 650-9088 or submit your message online to receive more information about business tax planning.