Do you want to pay more business taxes than you have to?
Of course not! That’s why you should check out the five business-deduction strategies we’re providing.
These perfectly legal strategies that you can put to work now can help produce additional business tax deductions (and/or less taxable income) for 2020.
Five strategies you can use to increase your business-tax deductions:
Strategy #1: Prepay Expenses Using IRS Safe Harbor. IRS regulations contain a safe-harbor rule that allows cash-basis taxpayers to prepay and deduct qualifying expenses up to twelve months in advance without challenge, adjustment, or change by the IRS.
Strategy #2: Stop Billing Customers, Clients, and Patients. Not forever. Just don’t bill until after December 31, 2020. By moving that income into 2021, you’ll reduce your taxable income significantly.
Strategy #3: Buy Office Equipment Now. With bonus depreciation now at 100-percent along with increased limits for Section 179 expensing, buy your equipment or machinery and place it in service before December 31. When you do, you’ll get a deduction for 100-percent of the cost in 2020.
Strategy #4: Make sure you’re using your credit cards. If you’re a single-member LLC or sole proprietor filing Schedule C, the day you charge a purchase to your business or personal credit card is the day you deduct the expense. So consider using your credit cards for last-minute business necessities.
Strategy #5: Don’t be afraid of taking too many deductions. Are you concerned that taking quite a few deductions will raise a red flag in front of the IRS? They won’t! If your deductions are legitimate, and you’ve got documentation to back them up, you’ll be in good shape.
To schedule a free consultation and discuss additional business tax strategies, contact Contact Meese Khan, LLP today!
Phone: 623 935 1005