5 Ways Small Business Owners Can Save on Their Taxes

5 Ways Small Business Owners Can Save on Their Taxes

  1.  Business Use of Personal Automobile – Do you use your personal car for business? Start keeping track of every time you drive your personal car for business – it may meet the requirements as a tax deduction! In 2016, the standard tax deduction is $0.54/mile and many clients are saving $100s of dollars. 
  2. Health Savings Account – If you have a high deductible health plan (HDHP), you can setup a health savings account (HSA) and contribute up to $3,350 for self-coverage plans and up to $6,650 for family plans. This amount will lower your adjusted gross income (AGI) and in return, lower your tax liability! 
  3. Deferred Tax Retirement Contributions – Sign up and contribute into a deferred tax retirement plan. The contribution amount delays the earned income from being taxed until the year distributions are withdrawn. 
  4. Hire Your Child – Let your children help with small task and pay them through the business. This will help lower the business’ yearly taxed income. Please consider all child labor laws. 
  5. At Home Office – Rather than renting or buying an office space, do you have a dedicated room in your home you use for business? If you meet certain qualifications, you can use this space as a tax deduction and save money! 

Not sure if you meet the requirements for these tax deductions? Not a problem, contact us for a FREE consultation. 

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