Attention Middle Class & High-Income Earners: Protect Your Income & Investments Through Business Ownership
Jean Marlo Davis
Coach | Mentor | Speaker | Author | Ex-IRS Auditor | Wealth Creator Train Business Owners & Individuals to be auditproof/lower taxes, eliminate bad debt, and create "income-producing assets. Hire Us To Train Your Team!
As middle-class and high-income earners, you’ve worked hard to build your income and secure your financial future. But with higher earnings comes the challenge of tax liabilities and safeguarding your wealth. One of the most powerful ways to protect your income and investments is by understanding the tax advantages that come with business ownership. Whether you own a small side business or a full-fledged company, the tax code is designed to favor business owners—allowing you to keep more of what you earn.
Here are five key tips on how business ownership can help you safeguard your income and maximize tax advantages:
1. Take Advantage of Tax Deductions
As a business owner, you're eligible to deduct a wide range of business expenses, from operational costs like office supplies and equipment to more significant deductions like vehicle expenses, home office costs, and even business travel. These deductions reduce your taxable income, allowing you to owe less in taxes while keeping more of your earnings.
2. Utilize Depreciation of Assets
When you purchase assets for your business—such as real estate, equipment, or vehicles—you can benefit from depreciation. Depreciation allows you to spread the cost of these assets over several years, reducing your taxable income each year and ultimately saving you money on taxes.
3. Maximize Retirement Contributions
Business ownership opens the door to more robust retirement savings plans that offer greater contribution limits than personal retirement accounts. With plans like SEP IRAs, Solo 401(k)s, and defined benefit plans, you can contribute a significant portion of your income to tax-deferred retirement accounts, reducing your taxable income today while growing your wealth for the future.
领英推荐
4. Leverage Pass-Through Entities
Operating your business as a pass-through entity (such as an LLC or S-Corp) allows business income to "pass through" to your personal tax return, potentially lowering your tax rate. With recent tax reforms, certain pass-through entities may also qualify for a 20% deduction on qualified business income, giving you another tax advantage.
5. Turn Personal Expenses Into Business Deductions
If structured properly, many of your personal expenses can be converted into legitimate business deductions. For example, if you travel frequently for work or entertain clients, those meals and travel expenses can become deductible, lowering your taxable income.
Protect Your Financial Future Today
Business ownership not only offers the opportunity for financial growth but also provides key strategies to protect your income and investments from heavy tax liabilities. With the right approach, you can reduce your taxes, maximize your wealth, and secure your financial legacy.
Want to learn more about how to take advantage of these strategies? I invite you to book a free 15-minute consultation with me, Jean Marlo Davis, where we can discuss how to protect your income and investments while leveraging business ownership. Visit www.tiffisllc.com to schedule your consultation today!
Your financial freedom is just one conversation away.
Jean Marlo Davis Founder & CEO, TIFFIS, LLC