Your What-to-Do-Now to Save-Later Checklist
As 2023 comes to a close, so do several business tax liability savings opportunities. Sure, you can deduct the normal biz stuff, including charitable donations, travel expenses, utilities, startup costs, and home office space. But there are even more ways to save money and keep the IRS satisfied. We’ve put together a quick checklist of items to talk about with your tax professional.
Central Willamette business tip: The IRS has plenty of tools, documents, and advice to help small business owners stay on top of their taxes. Learn more here.
- Track Your Drive Time. The miles you and your employees drive for work may be tax deductible. At 65.5 cents per mile for the 2023 tax year, it’s worth the extra effort to log every outing and keep solid records.
- Cut Energy Costs and Save. The Inflation Reduction Act could help you reduce your energy costs and tax liability. The tax credit covers 30% of the cost of switching to solar, or up to $5 per square foot to support energy-efficient improvements.
- Go Electric on the Road. If you’ve been wanting to upgrade your fleet of vehicles, now could be the time. The Clean Commercial Vehicle Credit could give you a tax credit of up to 30% of the purchase cost for electric (EV) and fuel-cell model vehicles. Best of all, there is no limit to the number of cars and trucks you can claim. Of course, there are restrictions, so talk to your advisor first.
- Pay Off Employee Student Loans. If your company offers an educational assistance program, you may be able to help pay off student loan obligations (up to $5,250 per year per employee). That includes the principal and interest on certain qualified loans.
- Make Big Purchases Now. While the amount you can reduce your tax liability depends on your taxable income and tax bracket, large expenses may be deducted from this year’s taxes if you complete the purchase by December 31. If you need new computers, smartphones, or other equipment, look into this opportunity.
- Deduct Healthcare Premiums. Do you have an individual health plan? Do you pay your premiums out of your own pocket? You could be eligible for some tax savings.
- Max Your Retirement Savings. Investing in yourself is always a good thing. Consult with your tax professional about maximizing the amount you can add to your SIMPLE IRA, SEP IRA, or qualified 401(k) plan. It could save you money on your taxes and boost your financial future.
- Re-evaluate Your Business Structure. There are differences in the amount and type of taxes you pay as the sole proprietor of an LLC, S-Corp, and others. Talk to your tax professional about your options.
Reminder: if you are a business borrower, please remember to provide our Business Services team with your 2022 financials for the annual review to ensure your rate does not change!
Our Business Team is on Your Side
The Central Willamette Credit Union business team is ready to help you maximize your profits and boost the financial future of your company. Look to us for savings and checking accounts, business loans, and a full suite of merchant services, including credit and debit card machines as well as online payment processing.