By the time you file, most of your tax outcome is already decided. The owners who pay less are the ones who plan during the year. Here are five moves that consistently make a difference.
1. Fund the right retirement account
The right plan can let you set aside meaningful pre-tax dollars while building your own future. The best option depends on whether you have employees and how much you want to contribute.
2. Get your compensation structure right
If you're an S-corp owner, the split between salary and distributions matters. Too high or too low both cost you. This is worth a yearly check.
3. Time income and expenses on purpose
Accelerating a deduction into this year or deferring income to next can shift your bill, when it fits your cash flow and your bracket.
4. Capture the deductions you're already earning
- Home office, if you qualify
- Business use of your vehicle
- Health savings account contributions
5. Keep clean books all year
You can't plan around numbers you don't have. Current books are what make every other move possible.
Want us to build a plan around your numbers? That's what a Sagan tax planning engagement does, all year, not just in April.