It’s that time of year—everyone’s Googling ways to lower their 2024 taxes. But with only days left, is there anything you can do?
Maybe. But probably not.
You’re in good shape if you are working with Tannery Company as we continually work to ensure our clients have the best alternatives to minimize their income tax and increase their net worth.
For Tannery Clients – if you have not scheduled your year-end planning use this link.
TANNERY YEAR-END PLANNING MEETING
But if your CPA has failed to help you plan and prepare, here are a few last-minute moves for high-income business owners or partners, small business owners with stable cash flow, or business owners approaching retirement. You play a crucial role in leveraging the tax code to your advantage.
- Set Up a Business Retirement Account: Solo 401(k), SEP IRA, or 401(k) for larger teams. Not only are you preparing for retirement, but you’re also deferring or reducing taxes now.
- Max out your retirement savings with a Cash Balance Plan—ideal for high-income business owners seeking significant tax advantages and rapid retirement growth. Perfect for professionals with stable incomes! Have you never heard of one? Strike one for your current CPA
- Empower yourself by Choosing the Right Tax Election: The difference between Partnership, S Corp, C Corp, and sole proprietor isn’t just a name. It’s a strategic decision that can make a massive difference in your tax savings. Take control of your financial future.
- Optimize your tax savings with the QBI Deduction: If you are eligible, this deduction can shave off 20% of your qualified business income or 50% of wages—savings you can reinvest back into your business or stash away. It’s a significant opportunity for your financial growth.
- Give Back and Get a Tax Break: Charitable donations, donor-advised funds, and appreciated securities donations can help you reduce your taxable income while supporting a cause.
- Use an HSA: Contribute the maximum to your HSA if eligible. It’s triple-tax-advantaged and rolls over for future health expenses (or maybe even a rainy day). You can do this up till April 15, 2025!
- Roth Conversions in Low-Income Years: Converting pre-tax assets to Roth when your income down means paying tax at a lower rate and enjoying tax-free growth.
- A Backdoor Roth IRA allows high earners to convert traditional IRA contributions into tax-free growth, bypassing income limits. It’s a smart strategy for building tax-efficient retirement savings. Not doing these? Strike two for your current CPA!
- Accelerate or Defer Income: Are you anticipating a lower income year? Push some earnings to next year. Had a good year? Bring in payments early. Timing is everything. Is your current CPA not advising you on this? Strike three – they need to be known as your former CPA
Unlike your regular CPA, we are here to make you money, not just file paperwork.
Tax planning is a year-round game, not just a last-minute sprint.
Want to get started?
Best,
Michael
