Key tax strategies for business owners:
1️⃣ Choose the right business structure – S corporations can save thousands in self-employment taxes for those netting over $100,000. Optimize your balance of wages and distributions.
2️⃣ Leverage Section 179 – Deduct the full cost of qualifying equipment purchases in the year you buy them, reducing taxable income and freeing up cash flow.
3️⃣ Track expenses better – Organized bookkeeping ensures you capture every deduction, from travel to office supplies. Start now to avoid rushing and missing potential write-offs.
4️⃣ Defer income – Delay issuing invoices so payment hits in January. This reduces taxable income for 2024, especially useful if you expect to stay in the same or lower tax bracket next year.
Tax-saving strategies for investors:
6️⃣ Tax loss harvesting – Sell losing investments to offset gains or claim up to $3,000 against income. Wash sale rules prevent repurchasing the same or similar investments within 30 days, but they don’t apply to Bitcoin. This means you can sell and immediately rebuy Bitcoin to claim losses while maintaining your position.
7️⃣ Tax gain harvesting – If your income is below $47,025 (single) or $94,050 (MFJ), realize gains at the 0% capital gains rate. Repurchase the asset to reset the cost basis.
8️⃣ Roth conversions – Low-income years are ideal for converting traditional IRAs to Roth IRAs. You’ll pay taxes now, likely at a lower rate, and enjoy tax-free growth and withdrawals later.
9️⃣ Maximize HSA contributions – Contribute $4,150 (individual) or $8,300 (family) if you have a high-deductible health plan. HSAs offer triple tax benefits: tax deductions on contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
🔟 Donor-advised funds (DAF) – Lump-sum charitable contributions to a DAF give you an immediate tax deduction while letting you distribute funds to charities over several years.
November & December are prime months for tax planning. Here are 15 ways to save now and in the future:
1️⃣ Max out retirement contributions – Contribute the max $23,000 to traditional or Roth 401(k)s. Traditional reduces taxable income; Roth builds tax-free retirement savings.
2️⃣ Mega Backdoor Roth – Some workplace plans allow after-tax 401(k) contributions that can be rolled into a Roth IRA or Roth 401(k). Save even more for retirement with tax-free growth potential.
3️⃣ Backdoor Roth – For high earners, contribute to a non-deductible traditional IRA and convert it to a Roth IRA. Ensure you have no pre-tax IRA balances by Dec 31 to avoid pro-rata taxes.
4️⃣ Donate appreciated shares – If donating to charity, give appreciated shares instead of cash to avoid capital gains taxes. Repurchase the shares to reset your cost basis and reduce future taxable gains.
5️⃣ Qualified Charitable Distribution (QCD) – If you’re 70½+, donate directly from your IRA (up to $105,000). This satisfies RMDs, avoids taxes on the distribution, and lets you take the standard deduction.
Is an S-Corp Right for You? 💼
✅ You’ll get tax savings, liability protection, and a professional edge.
⚠️ But it comes with admin work and rules to follow.
The bottom line: If you want to cut taxes AND grow your biz, it’s worth a look. Just talk to a tax pro before diving in!
👉 Got questions? Drop ‘em below or DM us—We’ve got you!
Who’s a Good Fit for an S-Corp? 🤝
S-Corps shine for:
✔️ Small-to-medium businesses with steady profits.
✔️ Owners actively working in the biz who want to save on taxes.
✔️ Anyone okay with handling the paperwork and payroll.
But they’re NOT ideal if:
❌ You’re chasing big investors.
❌ You’ve got foreign partners or need multiple stock types.
Got steady cash flow? This might be your sweet spot.
The Downsides of S-Corps 😬
Not everything’s sunshine and tax savings. Here’s the deal:
⚠️ Strict Rules: Max 100 U.S. shareholders, and only one type of stock allowed.
⚠️ Admin Work: Meetings, minutes, payroll, filings.
⚠️ “Reasonable Salary” Rule: The IRS expects owner-employees to pay themselves a fair wage (yes, even if profits are tight).
Make sure the benefits outweigh the hassle for your business.
The Perks of an S-Corporation 🎉
S-Corps have some awesome benefits:
✅ Tax Savings: Only taxed at the owner level, not the biz level.
✅ Lower Self-Employment Taxes: Pay yourself a salary, take the rest as tax-free distributions.
✅ Liability Protection: Keeps your personal assets safe.
✅ Extra Tax Deductions: Like up to 20% off qualified biz income (QBI).
Sounds like a win all around, right?