All-In Advisors Tax & Accounting Del Ray Florida
These are the strategies that will help you reduce your business taxes the most.
Use a Section 105 plan to turn your health insurance costs into business expenses If you are married, with no employees in your proprietorship, you hire your spouse as an employee, and cover him or her with a Section 105-HRA family medical expense plan.
Employ your under-age-18 child to make taxes disappear It is possible you hire your child who is under 18, you shift taxable income from you to your child, free of payroll taxes. S-Corp’s must pay payroll taxes, but the strategy may still be advantageous.
Employ our spouse without paying him or her a wage Instead of paying your employee-spouse wages on a W-2, you can reimburse as remuneration all family medical expenses.
Rent from your spouse to save self-employment taxes If you own an office building or other assets, a rental arrangement with your spouse could significantly cut your self-employment taxes by enabling you to move income from Schedule C to Schedule
Establish a home office as a principal office to increase business vehicle deductions and turn personal expenses into business expenses
The home office deduction allows you to convert a portion of your nondeductible personal expenses, such as utilities and insurance, into deductible business expenses and to depreciate a portion of your home as business property.
Identify de minimis fringe benefits that you can enjoy personally Under the de minimis fringe benefit rules, your business deducts the cost of flowers, fruit, books, and similar items given to you or your employees under special circumstances.
Combine the home office with a heavy vehicle to grab big deductions this year You find major tax savings with the heavy vehicle and home office combo. The heavy vehicle produces quick deductions. The home office that qualifies as a principal office eliminates commuting miles, which can dramatically increase your vehicle’s business deductions.
Sandwich weekend and standby days to create more fun on U.S. business trips When your business travel is in the United States and includes qualifying non-working days, such as weekend or standby days, you treat those qualifying personal days as business ays and deduct meals, lodging, etc.
Use the seven-day rule to create business trips that are 87 percent vacation If you travel for seven or less days to Bahamas, Mexico, Jamaica, or a similar destination, you deduct 100 percent of your transportation costs of getting to and from your foreign business destination—even if you work only one day.
Know the new smartphone rule that makes it easy to deduct your and your employees’ phones The tax code removed the smartphone from the listed property category, making your business smartphone easy to deduct.