Lavin & Associates

You cannot avoid paying taxes but can find ways to reduce your tax liabilities with proper planning of financial expenses and methods to lower their liability. To make it easier for you, here are some strategies to minimize the tax liabilities of your businesses. Let’s get started!

 

1. Lowering the amount of your taxable income

2. Managing the time when you have to pay tax

3. Decreasing the tax rate

4. Claiming tax credits available

5. Managing the impacts of Alternative Minimum Tax

6. Avoiding the tax planning mistakes

 

To effectively plan, you are required to evaluate your income (personal and business) in the coming years. This is essential as several tax planning strategies save tax dollars at the level of one income, but will make a larger tax bill at other levels of income. You would not want to have a wrong tax plan due to incorrect income projections. Once you know about approximate income, you can estimate the tax bracket.

 

The effort to come with the right estimates might be difficult but it will have inexact nature. On the other hand, you need to project sales revenue, cash flow for planning purposes of business already. Better estimates will have more odds of succeeding in your tax planning efforts. If you find the process quite intricate, you also have an option to look for a financial professional in NYC for the accounting and tax services of your business. 

 

Apart from these strategies, here are some other ways you can save on your business taxes:

 

Business Automobile Deductions

If you use your vehicle for business purposes, including visiting clients, attending business meetings away from your workplace, you might make certain deductions for operating and maintaining your vehicle. You can reduce car expenses by using actual expenses or taking standard mileage.

 

Maximizing Expenses for Business Entertainment

Business expenses are the right deductions to lower the tax bill and save money, you just need to follow some guidelines. To qualify as a reduction, business needs to be discussed earlier, during, or after a meal, also surrounding needs to be helpful for business discussion. For example, a quiet restaurant would be a wonderful place for a business dinner and a club won’t be.

 

Home Office Deduction

The home office deduction is one of the hardest deductions, yet it has several tax deductions. Make sure you use a section of your home for your work only, taking a work from home won’t fit like that. Try showing your home contact number and address on business cards. Deduct phone charges for long-distance, keep a log of time and work activity, keep receipts.

 

Final Thoughts

Taxes are complex, but proper planning can help you make it less intricate. However, being a business owner, you will be overwhelmed by several other responsibilities. It is thus recommended to approach a financial professional for your accounting and tax services in NYC.