The heat is on, and 4th Quarter is rapidly approaching. Before the holidays arrive and its too late for tax planning, consider some win-win opportunities to reduce your business taxes:
#1 Party Time for Your Clients – Savings for You
It’s always a good idea to seal the deal with a thoughtful dinner or a client appreciation event. You can easily write off up to 50% of all costs associated with these types of events. So consider taking your client out for a night out on the town after conducting your business deal. It’s a great way to show your client you appreciate them and helps build a stronger relationship outside the office.
#2 Get together, show your staff you appreciate them!
What may apply to your business partners, isn’t always eligible to staff. However, when you’re organizing a picnic or a barbecue a 100% deduction comes to the rescue. Just be sure it’s an all-staff event and nobody is left off the invite to ensure full tax deduction eligibility.
#3 When Charity Gives a Financial Parity
Donate your used furniture and clothing (including office equipment!) for a charitable deduction tax credit. The basic assumption is that these things are still in decent condition, including your willingness to accept the so-called fair market price for your donated belongings.
#4 School Is Out, Summer Camp is In
Here’s a cozy way to do something nice for your kids, and something beneficial for the reduction of your taxes. You can count on a tax break for the costs of day camps, including special camps for gifted youngsters in athletics or the arts. Not only do you get a break on your taxes here, you get a break from the kids as well!
#5 Your Second Home, First Tax Base
This may come as a surprise, but you can actually qualify your RV (recreational vehicle) as a so-called second home. This means that federal income tax regulations allow you to write off the loan interest. The one caveat: this “second home” is actually a home with a kitchen, a place to sleep, and toilet facilities as well.
#6 Minimizing Vacated Home Use
Many Summer vacationers choose to rent out their home while they are away. Just remember, you can’t include a loss deduction if your personal use includes more than two weeks or 10% of renting time in total. Just make sure you’re below these values.
#7 Save Energy – Reduce Taxes
If you acquire a new energy-saving device this summer, then you may qualify for up to 30% of your costs in an energy credit. As you might have guessed, air conditioners, skylights, air circulating doors, refrigerators, washers, dryers, dishwashers, vehicles, solar panels and fans are all treated as energy-saving devices if you purchase the right models.
Business taxes can be a hefty expense that if not planned for properly, can cause real damage to the bottom line. Holdsworth & Co., CPA’s provides full service tax, accounting, bookkeeping and CFO services to small and medium sized business owners. Contact Us for a free consultation and see how we can help your business plan for the future and take advantage of business tax savings in your area.