Top 5 Overlooked Tax Deductions for Entrepreneurs on Extension

Are you one of the savvy entrepreneurs who chose to file for an extension to maximize your tax savings for 2023? We understand that you're busy strategizing to reduce your tax liability and want to ensure you're not missing out on valuable deductions. As tax experts, we've identified the top five most commonly overlooked tax deductions for entrepreneurs like yourself, on extension for filing their tax returns. Let's dive in:

Depreciation on Business Vehicles:

Many business owners forget to claim depreciation on vehicles purchased for business use. Your business vehicles can be significant assets, and depreciation can lead to substantial tax savings. Don't let this deduction slip through the cracks; ensure you account for depreciation on your business fleet.

Personal Payroll for S Corporation Owners:

For S corporation owners, paying themselves a reasonable salary is crucial. Failing to do so means missing out on potential tax benefits. By taking a reasonable salary, you can balance reasonable compensation and dividends, optimizing your tax situation.

The Augusta Rule (Code Section 280A):

Do you know about the Augusta rule? It's a unique tax advantage that allows business owners to rent their homes to corporations for up to 14 days without tax implications. This often overlooked deduction can yield surprising tax benefits and save you money.

Contributions to a SEP IRA:

As a self-employed individual, contributing to a Simplified Employee Pension (SEP) IRA can significantly reduce your tax bills while helping you build your retirement savings. It's a win-win situation for your finances and your future.

The Real Estate Professional Strategy:

The real estate professional strategy can unlock substantial tax benefits for married entrepreneurs with real estate investments. If your spouse manages the real estate portfolio at least 750 hours, you could qualify for this deduction, further optimizing your tax situation.

Our goal is to help you maximize your tax savings and ensure you're making the most of every deduction available. As experts in tax planning for entrepreneurs, we can work together to implement these strategies tailored to your unique circumstances.

Let's schedule a short meeting whenever you can talk about these deductions and how they can work for you.