Small-Business Tax Planning for the Coming Increased Taxes

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Small businesses can save a lot of money if they take time to plan how they can reduce their taxes. Waiting until the end of the year to discover which tax credits or tax deductions you can get is too late. Most likely, you will wish you knew about some new deductions before the year ended.

Taxes for many businesses are going to increase considerably in 2023. President Joe Biden has revealed that his budget for 2024 calls for a hike of $4.7 trillion. The U.S. Ways and Means Committee announced that owner-operated small businesses are expected to provide $650 billion of that tax increase; $235 billion will come from partnerships, LLCs, and “S” corporations; and about 1 million “C” corporations will have their taxes increased by about 33 percent.

Your Business Needs Strategic Tax Planning Now

Strategic tax planning enables you to discover what new taxes are available, as well as already existing ones, so that you can maximize tax deductions and get the most benefit when tax time rolls around. It will require being alert to new taxes and the annual changes in the tax codes.

Detailed Records Are Necessary

Getting the most deductions and credits requires that you keep precise records. It will also help if you categorize your expenses, which makes it easier to calculate deductions at tax time.