GENIUS Tax Advice For Business Owners ft. Matt Bontrager | The Dept. Ep. 027
Mar 28, 2024
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Tax advisor Matt Bontrager shares strategies for small business tax savings, LLC benefits, maximizing deductions, and setting up retirement savings. He emphasizes the importance of expert advice, tracking business expenses, and separating personal finances. The episode also discusses the holistic approach to ROI, teaching financial literacy, and navigating tax filing complexities for self-employed individuals.
Strategic tax planning can optimize deductions and save business owners money.
Differentiate between a CPA and a tax strategist for proactive tax planning.
Effective bookkeeping is crucial for tracking income, optimizing deductions, and accurate financial reporting.
Deep dives
Tax Department: Importance of Tax Strategy for Business Owners
Understanding tax structure is crucial for business success and saving money. Small business owners should strategically plan their expenses to maximize deductions. Deductions can include car payments, car insurance portions, and more. Deductions can significantly impact tax bills, emphasizing the need for tax strategies for business owners.
Tax Strategist vs. CPA: Importance of Strategic Tax Planning
Differentiating between a CPA and a tax strategist is vital for proactive tax planning. A CPA merely prepares tax returns, while a tax strategist proactively analyzes your financial situation to suggest tax-saving strategies. Strategic tax planning can help business owners save substantially on taxes by optimizing deductions and leveraging tax-saving opportunities.
Starting a Side Hustle: Importance of Bookkeeping for Tax Success
Bookkeeping is essential for tracking income and expenses in a side hustle or small business. Keeping detailed records can help optimize deductions, reduce tax liabilities, and ensure accurate financial reporting. Effective bookkeeping sets a solid foundation for financial success and tax planning.
Tax Deductions and Business Ventures: Leveraging Expenses for Tax Savings
Utilizing business expenses for tax deductions can optimize tax savings. Business-related purchases like equipment, travel, and marketing can be tax deductible if they are necessary and ordinary for your business operations. Planning business-related activities as tax-deductible can significantly reduce taxable income and lower overall tax liabilities.
Tax Deductions for Vehicle Expenses
Individuals can potentially write off part of their lease payments and car insurance by calculating their business use percentage based on total mileage and business miles. Tracking mileage using QuickBooks can aid in automatic tracking and categorizing trips as personal or business, simplifying the process. Properly documenting and understanding these expenses can significantly lower taxable income.
Business Strategies in Tax Planning
Strategic decisions in business include choosing between buying or leasing a vehicle based on tax deductions. Buying a vehicle over 6,000 pounds can offer substantial deductions regardless of the down payment. Understanding depreciation recapture when selling assets like cars is crucial to grasp the tax implications and potential gains or losses.
In this episode of The Dept. Omar talks with Matt Bontrager, about how small business owners and entrepreneurs can strategically set up their business to avoid paying a large tax bill. Matt is a tax advisor/strategist and owner of Truebooks CPA. Many of us feel we are entitled to the more of the money that we earn. Matt drops so many gems in this episode about the right moves to make to save your business more money. If taxes stress you out watch this Episode!
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