Taxes are one of the largest expenses for businesses, but businesses can save a significant amount of money by taking appropriate tax deductions. At James T. Borello & Co., our consultants aggressively seek all available tax deductions for our clients. Additionally, we advise our clients on other strategies they can use to minimize their tax liability. Our firm has a long history of saving businesses money on their taxes.
Here are some simple ways businesses can reduce their taxable income:
- Deduct business losses—If your business has a bad year, you may be able to offset your taxable income with your business losses. This can equal big tax savings, but the guidelines governing this deduction can be tricky.
- Defer income until next year—If you can put off receiving income until the beginning of the next year, you won’t have to pay taxes on that income until the following year. However, the wisdom of this strategy depends on the current situation and future prospects of your business.
- Prepay next year’s expenses—If you plan on investing in your business in the immediate future and have the cash flow to do it before year’s end, don’t wait. This will maximize your deductions for this year.
There is no one-size-fits-all tax strategy for a business. The individual circumstances of a business determine how that business should approach tax preparation. At James T. Borello & Co., our experienced tax consultants study the specifics of your business to develop an effective tax strategy that minimizes your tax liability. Contact us to learn how our firm can help your business save on its taxes and improve its bottom line.