Tax Savings are Timely
Don’t let the sun set on your tax savings! We’re more than halfway through 2024, and many of us are taking our well deserved vacations. However, if you want to protect yourself against paying unnecessary taxes, it’s important to remember – even during vacation season – to take advantage of time sensitive tax savings.
Last week, the high here in Phoenix was 116 degrees. So a great migration draws people to the coast and higher elevation. Don’t let this great escape from the heat cause you to forget about the tax deductions you should be taking throughout the year, even during the exodus from this inferno.
Tax Savings Aren’t Necessarily Automatic
Some tax deductions don’t automatically make their way on your credit card or bank statements, so it’s likely your bookkeeper will miss them.
Furthermore, some deductions require a bit of time and effort to document, calculate and administer.
For example, for an owner of an S Corporation to properly deduct home office expenses, you would need to have the S Corporation reimburse yourself for things such as utilities, maintenance, rent or mortgage interest under an accountable plan. Also, the reimbursement needs to happen in a timely manner according to the accountable plan, which could vary between 30-120 days. These are truly time sensitive tax savings.
Some other Time Sensitive Tax Savings Considerations
As you go through the year, make sure you are considering some other potential tax savings opportunities:
- Did you take advantage of the Augusta rule and properly have your company pay you for using your primary residence?
- Did you have your children as young as 7 years old submit time cards for work on the business and process their payroll?
- Did you take pictures of the items you donate to Goodwill or other organizations to substantiate the deduction?
- Are you properly deducting your vehicle or vehicle mileage?
- Are you traveling for business this summer?
Missing these could lead to thousands of dollars in missed deductions that just may escape your mind come tax time next year. And it is often too late if they weren’t administered properly.
When you’re busy running your business and trying to beat the heat, tax deductions might not be your top priority.
Help Protect Against Unnecessary Taxes
At HOLOS, we prioritize your tax plan, helping to administer AND implement it for you. We ensure everything is accurately reflected in your books come tax time.
Let us help you save on taxes so you can fully enjoy your summer escape. Give us a call at 602-902-1500.
