Save $1,000s This Tax Season...

It's officially tax season.

And every year, business owners miss out on saving $1,000s on their taxes... simply because they don't know what questions to ask their CPA.

Here are 10 MUST-ASK Questions to bring up during your meeting with your CPA this tax season:

1. Is my current business structure (LLC, S-Corp, etc.) still the most advantageous for tax purposes?

By asking this question, you could uncover tax advantages by converting your business to a different structure.

For example, in an S-Corp, you could pay less in taxes by paying yourself a salary out of the business.

With how high the income tax brackets are, it's worth the ask.

2. Can you recommend any tax planning strategies for the upcoming year?

Planning a vacation sometime this year? Do you have a client or clients in the state you're traveling to?

Reach out to the client and offer to meet up.

Then discuss the possibility of writing off all or some of the trip expenses with your CPA.

3. Are there any new tax laws or changes that affect my business?

The laws and rules across different industries are constantly changing... your CPA should be staying on top of these changes.

For example, starting in 2024, LLCs, corporations, and other entities will have to file beneficial ownership information reports with the U.S. government.

4. Are there strategies to depreciate or write off asset purchases to reduce tax liability?

Want a reason to buy a Mercedes G-Wagon?

Section 179 of the tax code says you can deduct $28,900 in 2023 because the SUV weighs between 6,000 and 14,000 pounds (assuming it's used for business purposes).

Maybe not the best move, but it's worth the ask to see if it makes sense, right?

5. Should I adjust my estimated tax payments for the upcoming year based on the updated tax brackets?

When it comes to most businesses, cash flow is everything. You want to ensure you're setting aside enough each month or quarter to pay the tax bill at the end of the year.

The last thing you want is to have to come up with a huge lump sum towards the end of the year.

6. What deductions or credits am I eligible for this year?

Don't sleep on the power of deductions and credits.

For example, some deductions people miss are business meals, business insurance, and travel expenses.

And don't forget about the R&D tax credit.

It's available to businesses of all sizes for qualifying research activities, including software development, architectural design, product enhancements, and more.

7. What retirement plan options are available for me and my employee?

Just because you run your own business doesn't mean you don't need to save for retirement.

Bring up possible retirement plan options for personal and employee benefits... this helps reduce the business's taxable income and secures the financial futures of you and your employees.

8. What are the most tax-efficient ways to withdraw profits or income from my business?

The goal is to maximize personal income AND minimize taxes.

Bring up various options to withdraw profits like salaries, dividends, or distributions to determine which makes the most sense depending on your business.

9. Am I eligible for the qualified business income deduction (Section 199A)?

Section 199A, if eligible, can significantly lower taxable income for pass-through entities.

It could provide a deduction of up to 20% of qualified business income.

10. Are there any industry-specific tax credits or incentives available for my business?

Ask about different activities or investments that qualify for specialized tax benefits within your industry.

You never know what kind of wrinkles your CPA can find in the tax code to save you money.

There you have it!

10 must-ask questions to bring up to your CPA when you meet with them this tax season.

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