Summary: In today’s podcast, Julio Gonzalez from Engineered Tax Services discusses some small business tax credits, tips, and tricks regarding tax credits that all small and large businesses should know. No matter your business size, it is crucial to spend time looking into the proper tax benefits for your industry.
Have a Small Business Tax Plan
For small business owners, it can be easy to not spend too much time focussing on tax benefits. Many small business owners on average pay the IRS more than they need to due to not claiming the proper tax write-offs. Small business owners should look to professionals that specialize in small business tax accounting instead of just utilizing your CPA that does your business taxes. Instead of viewing these professionals as a cost, view them as a smart investment. A tax accountant is different than the accountant who does your taxes. If the tax accountant has proper industry knowledge and experience, a great tax accountant can end up saving you a large chunk of money.
Real Estate Is The Top Tax Write Off for Small Business Owners
Small business tax questions can arise when businesses are unsure about how they can reduce taxes. Business real estate is a timeless tax-saving option with a plethora of benefits for small business owners that tend to go unnoticed by entrepreneurs.
So what are the benefits of buying property and a building as a small business? When you purchase real estate for business purposes, you can claim the whole purchase on your taxes. Furthermore, when you rent it out to tenants, you essentially get to pay your mortgage off with that money through rent.
This option is timeless as your real estate will be an appreciating asset, gaining value over time. If you keep up with the property needs, you can increase the value more that way. For example, if you choose to install renewable energy sources into your property, you can claim that as a tax write-off.
To break it down further, here is a quick recap of the various benefits to buying real estate a business owner;
- Mortgage reduction
- Appreciation of your property
- Tax deductions
- Healthy cash flow
Buying real estate can be a very wise investment if you are in it for the long haul and even if you are not ready to buy yet, knowing about real estate as a tax deduction is a wonderful knowledge to have