Tax Hacks Every Entrepreneur Should Know

Choosing the Right Business Entity - "So you always have to work with your CPA to make sure that you have the right entity type so you can take advantage of the tax code with those different things." - Glenn Harper Glenn and Julie talk about the practical side of tax savings. Whether you’re a business owner or an individual with a “real job.” Drawing from the latest tax law updates, they break down essential tax hacks: from maximizing your 401 (k) contributions and health savings accounts to making the most of charitable giving. Business owners, in particular, will hear about unique deductions, the importance of choosing the right business entity, how to leverage income-shifting strategies like hiring your kids, and the ins and outs of the Augusta Rule for home offices. If you’re looking to keep more of your hard-earned money in your pocket this tax season, you’ll want to catch all the actionable tips in this conversation. This episode is brought to you by PureTax, LLC. Tax preparation services without the pressure. When all you need is to get your tax return done, take the stress out of tax season by working with a firm that has simplified the process and the pricing. Find out more about how we started. Here are 3 key takeaways I found super valuable: Maximize Pre-tax Benefits If your employer offers a 401 (k) (especially with matching!) or a health savings account, contribute as much as you can reasonably afford. These strategies let you defer or deduct income, putting more money back in your pocket. Business Deduction Tests Matter For business owners, remember that the best deductions are “ordinary, necessary, and reasonable” for your business. Run every potential expense—from pianos to helicopters—through these filters (with your CPA!) to avoid unwanted IRS attention. Income Shifting & Family Opportunities Thinking strategically and shifting income to lower tax brackets—including paying your kids or spouse for legitimate work—can provide significant tax savings. Plus, don’t forget the power of the Augusta Rule and proper entity selection to maximize deductions. Running a business doesn’t have to run your life. Without a business partner who holds you accountable, it’s easy to be so busy ‘doing’ business that you don’t have the right strategy to grow your business. Stop letting your business run you. At Harper & Co CPA Plus, we know that you want to be empowered to build the lifestyle you envision. In order to do that you need a clear path to follow for success Our clients enjoy a proactive partnership with us. Schedule a consultation with us today. Download our free guide - Entrepreneurial Success Formula: How to Avoid Managing Your Business From Your Bank Account. Glenn Harper, CPA, is the Owner and Managing Partner of Harper & Company CPAs Plus, a top 10 Managing Partner in the country (Accounting Today's 2022 MP Elite). His firm won the 2021 Luca Award for Firm of the Year.  An entrepreneur and speaker, Glenn transformed his firm into an advisory-focused practice, doubling revenue and profit in two years. He teaches entrepreneurs to build financial and operational excellence, speaks nationwide to CPA firm owners about running their businesses like entrepreneurs, and consults with firms across the...