Plain & Simple: Bright Business Insights Vol. 10 Summer 2024 Summer 2024 | Page 9

Tax Planning Engineered for Profit

Smart Moves for Business Owners
You are probably getting lots of advice on how to run your business . But what if thinking ahead for year-end tax planning makes the difference in how successful your year can be ? This could be the key to putting more money back into your business and setting yourself up for a fantastic year ahead .
What ' s in It for You ?
Let ' s cut to the chase . Smart tax planning can help you avoid nasty surprises when it ' s time to file and get a handle on your cash flow for the coming year . It can also potentially reduce what you owe Uncle Sam .
Sounds good , right ? So , let ' s dive in and see how we can make this work for your manufacturing business .
Plus , Section 179 lets you fully depreciate most equipment in the year you buy it . But remember , this only makes sense if the equipment is something your business really needs . No need to purchase new equipment just to save on some taxes .
As for vehicles under 6,000 pounds , keep in mind there ' s a cap of $ 20,400 for depreciation in 2024 . So don ' t expect to write off that fancy new truck all at once !
Supercharging Your Retirement ( and Your Tax Savings )
Now , let ' s talk about one of my favorite strategies : beefing up your retirement contributions . It ' s a win-win ! You ' re saving for the future and reducing your tax bill at the same time .
Here ' s the deal : In 2024 , you can depreciate 60 % of the cost for most equipment and tools immediately with bonus depreciation .
Getting Ready for Your Tax Planning Session
Think of tax planning as preparing for a big project . You need the right plan and materials to get started . In this case , that means :
Your business forecast for the rest of the year Your latest paystub with year-to-date info Any investment income summaries
The more info you can bring to the table , the better we can tailor our solutions to your specific situation . It makes the job easier for you and your tax advisor .
To Buy or Not to Buy : That is the Question
I bet you ' re wondering , " Should I splurge on that new piece of equipment to save on taxes ?" It ' s a great question , and the answer is ... it depends .
There are lots of options out there , from SEP IRAs to 401 ( k ) s , and we can help you figure out which one fits your business best . Plus , if you ' re starting a new plan , you might even qualify for a tax credit to offset the setup costs .
Hidden Treasures : Tax Credits You Might Be Missing
Here ' s where it gets interesting . There are several tax credits that many business owners don ' t know about . For example :
If you ' re developing new products or processes , you might qualify for the Research & Development Credit . Expanding and creating jobs ? Look into Jobs Creation Tax Incentives from states and cities . Hiring veterans or other individuals from certain groups ? Check out the Work Opportunity Tax Credit .
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