Big Picture, Financial Planning, Millennials

End of Year Tax Planning Moves Business Owners Can Make

Last week I wrote about 21 end of year tax planning moves W2 income earners can make. So of course I have to follow that up with a similar post for business owners.

Let’s walk through 23 impactful end of year tax/financial planning moves business owners can make!

  1. Max out your 401k, Solo 401(k), etc. on the employee side
  2. Max out your 401(k), Solo 401(k), Sep IRA, etc. on the employer/profit sharing side
  3. Max out Roth IRA/backdoor Roth IRA
  4. Max out your HSA if possible
  5. Max out 529 to the state tax benefit
  6. Maximize QBI – this can be through W2 salaries or profit
  7. Evaluate entity structure for 2024
  8. Review books and ensure everything is correct
  9. Consider PTET (paying state taxes via the business which makes it a deduction)
  10. Defer/accelerate income
  11. Accelerate certain expenses
  12. Use dependent care FSA funds
  13. Use FSA funds as most are use it or lose it
  14. Do tax loss harvesting on your taxable investment accounts
  15. Do some tax gain harvesting with your taxable investment accounts
  16. Do Roth conversions to maximize lower tax brackets or just the bracket you are in
  17. Look through paycheck/business profit and make sure you have withheld enough for taxes or have saved enough for what you will owe
  18. Donate cash to charity (maybe even consider bunching/donor advised fund to get even more in deductions)
  19. Donate highly appreciated securities (before selling to avoid the capital gains tax)
  20. Do a cost segregation study on an investments property and bonus depreciate it while bonus is still at 80%
  21. Invest in a qualified opportunity zone if you have large capital gains to defer
  22. Prepay property taxes to hit $10,000 max deduction (if married)
  23. Use the annual gifting limit to help move money to others in your family

Go make these now, the time is running out for this year.