Steps to Improve Tax Planning

Running a business can be one of the most powerful wealth building and tax planning tools available But only if you do it right I see the same early mistakes over and over, even from very successful business owners If you want to set yourself up correctly from Day 1 (or fix it before it gets expensive), here’s what matters most 👇 1. Get your entity election right This is foundational. The right structure can dramatically reduce taxes and expand planning opportunities The wrong one can mean: - Unnecessary self-employment taxes - No access to PTET - Reduced or eliminated QBID - Limited retirement contribution options - No QSBS - Less tax efficient for reinvesting and growing the business This decision should be proactive and can change as your business evolves 2. Keep business and personal finances completely separate Commingling accounts is one of the most common and costly mistakes It can: - Create audit risk - Destroy LLC liability protection - Turn tax prep into a nightmare - Cost you far more in professional fees and your time Clean separation from Day 1 saves money, time, and stress. 3. Track all your expenses Most business owners leave money on the table simply because they don’t track well Good tracking: - Maximizes legitimate deductions - Makes tax planning actually work - Gives you clarity on real cash flow The easiest time to do this is before the business gets “busy.” 4. Save for taxes monthly This is non-negotiable I see too many high-income business owners fall behind, then have to scramble to make things work Treat taxes like a fixed expense, not a surprise This is a huge reason we give clients new tax updates at every call 5. Understand safe harbor taxes and pay your estimates Underpayment penalties are completely avoidable. You need to Know: - Your safe harbor number - Your quarterly payment schedule - What you will get in from withholding - How income volatility affects estimates If you don’t know these numbers, you’re guessing And guessing is expensive 6. Do real tax planning 2–3x per year (not just in April) One of the biggest advantages of business ownership is tax flexibility But it only works if you plan: - Mid-year - Again in Q3 - Then finalize in December Tax planning is proactive. Tax prep is reactive 7. Setup the right retirement accounts Set up the right retirement accounts Not all retirement plans are created equal. In most cases: - Solo 401(k) > SEP IRA - 401(k) > SEP IRA and Simple's The wrong setup can cost you tens of thousands per year in missed contributions And limit Roth strategies Owning a business gives you incredible leverage... if it’s structured correctly But I see so many overpaying in taxes because they do not invest in tax planning

Most investors think tax planning is April’s problem. That’s how they lose serious opportunities every December. Here’s how to create year-end alignment, and keep more of what you’ve earned: STEP 1 – Know your real tax position → Guessing invites penalties → Calculate Q4 now, adjust proactively → Waiting means scrambling under pressure STEP 2 – Capture expiring deductions → Bonus depreciation drops January 1 → Cost segregation studies take time → The deadline isn’t April, it’s now STEP 3 – Review entity structure based on income → High W2? S Corp might help → Passive losses? Match with passive income → Adjust structure before year-end, not after STEP 4 – Layer in lifestyle deductions → Business travel, car use, phones, kids, yes, kids → But only if structured properly and documented → Use what the tax code legally allows STEP 5 – Sync tax planning with life goals → Don’t just cut taxes, build momentum → Align every move with your vision for wealth → Strategy is only useful if it supports your life Which move are you still sitting on, with less than two months left in the year?

I’ve helped clients save over £4 million in taxes. And it’s not because they earned less or cut corners. It’s because they understood how to use tax rules to their advantage. Here are 10 strategies I give to my clients: For Individuals: 1. Maximise pension contributions to reduce your taxable income. ↳ Accounts like SIPPs offer generous tax relief on contributions. 2. Take advantage of your tax-free allowances every year. ↳ Use personal, dividend, and capital gains exemptions before they reset. 3. Invest in tax-efficient accounts to grow your savings tax-free. ↳ ISAs, for example, shield interest, dividends, and gains from tax. 4. Claim deductions for eligible expenses if you’re self-employed. ↳ Things like office costs and equipment can reduce your tax bill. 5. Spread capital gains over multiple years to save more. ↳ This lets you maximize annual exemptions without overpaying. For Businesses: 6. Sell your business through an Employee Ownership Trust (EOT). ↳ This can eliminate capital gains tax entirely on the sale. 7. Claim R&D tax credits for innovation in your business. ↳ Even small projects can qualify for these lucrative credits. 8. Use salary sacrifice schemes to cut payroll taxes. ↳ Pensions, electric cars, and childcare vouchers all save money. 9. Pay dividends instead of a higher salary to reduce tax. ↳ Dividend income is often taxed at a lower rate than wages. 10. Invest in capital assets to use the Annual Investment Allowance. ↳ This allows 100% tax relief on qualifying purchases. Tax savings aren’t about avoiding what you owe. They’re about understanding the rules and using them wisely.

Most tech leaders leave serious money on the table with their tax strategy. The irony? Taxes are likely your biggest expense each year. Yet we spend more time optimizing smaller costs. We recently hosted a Supra learning talk with tax advisors who specialize in working with tech employees. They shared 5 tax moves that high earners often miss: 1/ Get strategic with charitable giving Don't just donate randomly throughout the year. Instead: ↳ Pool multiple years of donations into a Donor Advised Fund ↳ Donate appreciated stocks directly (avoid capital gains + get the deduction) ↳ Time it right to exceed the standard deduction threshold This simple shift can save you thousands. 2/ Maximize equity compensation Most people obsess about salary vs equity splits. The real game-changer? Early exercise + 83(b) election. Why it matters: ↳ Start long-term capital gains clock early ↳ Potentially save 15-20% on taxes when you exit But be careful: Only do this if you can afford to lose the exercise cost. 3/ Real estate isn't just about appreciation Smart property investing can create powerful tax benefits: ↳ Depreciation often wipes out rental income tax ↳ Interest and property tax deductions ↳ Short-term rentals (<7 days) can offset W2 income The key? Structure it right from day one. 4/ Think beyond the 401k High earners have more options: ↳ Cash Balance Plans for higher contribution limits ↳ Municipal bonds for tax-free income ↳ Strategic life insurance policies for tax-deferred growth 5/ State planning matters Moving states? Watch out for the "convenience of employer" rule. If your company is based in NY/CA: ↳ Remote work doesn't automatically save state taxes ↳ Equity grants can be taxed by multiple states ↳ Timing your move matters more than most realize The most expensive mistake? Most tech leaders treat their accountant like a tax preparer instead of a strategic advisor. They send over their documents in March. Get their returns filed in April. And never think about taxes again until next year. This passive approach costs them hundreds of thousands. The reality? Tax strategy is a year-round game. Work with advisors who can help you plan proactively. Small moves today can mean six-figure differences tomorrow. What other tax strategies have worked for you? ---- This post is for informational purposes only and should not be considered tax advice. Always consult with your tax advisor before implementing any tax strategies.

Most small business owners overpay tax not because tax is high, but because they file blindly. They rush to file. They panic close to deadline. They accept whatever number appears on the tax return. Tax authorities love unprepared taxpayers. Here are practical, legal tax realities every small business owner should understand before filing. 1. Profit is not the same as taxable profit Your business profit and taxable profit are not twins. Many expenses reduce taxable profit even though they do not reduce cash today. Depreciation. Capital allowances. Bad debt provisions. If you do not understand this, you will pay tax on money you never truly earned. 2. Separate personal and business expenses properly Many business owners mix everything together. Phone bills. Fuel. Internet. Rent. Subscriptions. If it is used for business, part or all of it may be deductible. But if your records are messy, you lose the deduction. Clean records reduce tax. Confused records increase tax. 3. Timing can save you money When you earn income matters. When you record expenses matters. Delaying income legally. Accelerating allowable expenses before year end. This simple timing strategy can shift tax without breaking any rule. Tax is not only about how much you make. It is about when it is recognized. 4. Many small assets should not be expensed immediately Buying equipment and expensing everything at once can be a mistake. Some assets qualify for capital allowance. This spreads tax relief across years and can reduce future tax pressure. Good tax planning thinks ahead, not just today. 5. Bad debts can reduce your tax bill If customers owe you and the debt is truly uncollectible, you should not pay tax on that income. Many small businesses pay tax on money they never received because they failed to treat bad debts correctly. That is avoidable. 6. Your business structure affects your tax Sole proprietor. Partnership. Limited company. Each structure has different tax consequences. What saved you tax two years ago may now be costing you more. Tax structure should grow with your business. 7. Cash flow must be considered before filing Tax payable on paper can destroy cash flow in reality. Smart business owners plan tax payments alongside rent, salaries, and inventory needs. Tax planning is cash planning. 8. Filing late is one of the most expensive mistakes Penalties. Interest. Unnecessary stress. Late filing often costs more than the tax itself. Preparation beats apology. The biggest truth Tax is not something you solve at filing time. It is something you manage throughout the year. The earlier you plan, the less you panic. The better your records, the lower your tax risk.

Many high earners lose up to five figures from poor tax planning. Here’s what to check before year-end: →Equity compensation Plan for taxes on RSUs, ESPPs, NSOs, and ISOs before exercising or selling. → Tax diversification Spread assets across pre-tax, Roth, and taxable accounts for flexibility. → Charitable donations Lump-sum giving can help you exceed the standard deduction and increase tax efficiency. → Tax-loss harvesting Offset gains, deduct up to $3,000 in losses, and clean up your portfolio. → Roth conversions Move funds from pre-tax to Roth when markets or income are lower. → HSAs Triple tax benefit: pre-tax contributions, tax-deferred growth, and tax-free withdrawals for qualified expenses. → 401(k) optimization Choose pre-tax or Roth contributions based on your current vs. future tax outlook. → 529 plans Tax-free growth, Roth rollovers, and the ability to front-load 5 years of contributions. →Real estate Use 1031 exchanges, expense write-offs, and other strategies to reduce taxable income. → Gifting Annual exclusion is $19,000 per person in 2025; larger gifts tap into your lifetime exemption ($13.99 million per individual and $27.98 million per marriage). The earlier you review, the more options you’ll have before December 31st. Which one of these will you be tackling first?

Here are some tax saving strategies for the USA Businesses (#TY2024): 1. Maximize Section 179 Deductions: - Deduct the full cost of qualifying equipment and software purchased or financed during the tax year. For 2024, the deduction limit is $1,160,000, with a phase-out threshold of $2,890,000. 2. Utilize Bonus Depreciation: - Businesses can deduct 80% of the cost of qualifying property placed in service in 2024, with the percentage gradually decreasing in the following years. 3. Take Advantage of the Research & Development (#R&D) Tax Credit: - Businesses investing in innovation can benefit from the R&D tax credit. This credit applies to qualified research expenses like wages, supplies, and contract research. 4. Review Entity Structure: - Evaluate whether your current business structure (e.g., LLC, S-corporation) is still the most tax-efficient. Consider converting to an S-corporation to potentially reduce self-employment taxes. 5. Deduct Home Office Expenses: - If you operate your business from home, deduct expenses related to the portion of your home used for business, including mortgage interest, utilities, and insurance. 6. Implement a Retirement Plan for Employees: - Consider setting up a 401(k) or #SEP-IRA for your employees. Contributions are tax-deductible, and these plans can help attract and retain talent. 7. Consider Hiring Strategies: - Take advantage of tax credits like the Work Opportunity Tax Credit (#WOTC) for hiring individuals from targeted groups, such as veterans or those receiving government assistance. 8. Review and Optimize Inventory Accounting Methods: - Adjusting inventory accounting methods (e.g., #FIFO, #LIFO) could lead to significant tax savings depending on the current economic environment. 9. Monitor State and Local Tax (#SALT) Deductions: - Pay attention to state and local taxes, especially if your business operates in multiple states. Ensure you are optimizing your SALT deductions within the limits. 10. Utilize the Qualified Business Income (#QBI) Deduction: - Eligible businesses can deduct up to 20% of their qualified business income, subject to limitations based on income level and type of business. Implementing these strategies requires careful planning and, in many cases, the advice of a tax professional.

AI can’t file your taxes -- but it can prep 90% of them Level up your tax preparation with these 10 prompts. Stop stressing about the April 15 tax due date in the US. Start here: 1. Tax Planning Calendar Create a month-by-month tax planning calendar for the current year. Include deadlines for estimated payments, contribution cutoffs (IRA, HSA), and helpful reminders for deductions. 2. Document Organizer What documents do I need to gather to prepare my taxes? Include both income (W-2, 1099) and deduction-related (mortgage interest, charitable donations) forms. 3. Freelancer Tax Prep Make a checklist of everything a freelancer should prepare before filing taxes. Include business income, deductions like home office, and quarterly payments. 4. Deduction Decoder Explain the difference between the standard deduction and itemized deductions. When does it make sense to itemize instead of taking the standard deduction? 5. Quarterly Tax Coach How do I calculate and pay estimated taxes as a self-employed person? Walk me through when payments are due and how to avoid underpayment penalties. 6. Tax Credits for Parents What tax credits are available for parents with children? Include the Child Tax Credit, Child and Dependent Care Credit, and the Earned Income Tax Credit. 7. Crypto & Taxes How do I report cryptocurrency transactions on my tax return? Explain capital gains treatment, taxable events, and how to track cost basis. 8. IRA Strategy Session Compare the tax advantages of a Traditional IRA vs a Roth IRA. When does it make sense to contribute to one over the other? 9. Filing Extension Help How do I file for a federal tax extension? Give me a step-by-step overview, including how much time it buys and what payments I still need to make. 10. Side Hustle Tax Tips What tax steps should I take if I earned side income from a gig or hobby? Help me understand how to track income, deduct expenses, and file correctly without setting up a full business. ♻️ Repost this to help your network with their tax preparation. ➕ Follow Kabir Sehgal for more like this.

Most business owners overpay taxes—not because they have to, but because they don’t know better. Every year, I see entrepreneurs losing lakhs simply because they aren’t aware of tax strategies designed to help them save. The best part? These strategies are 100% legal and used by the smartest business owners to optimize their tax outflows. If you’re a business owner, read this carefully—it could save you serious money. 1. Choose the Right Business Structure Your legal entity matters more than you think. Sole proprietorship, partnership, LLP, or a private limited company—each has its own tax benefits and drawbacks. The right structure can reduce your tax liability significantly. A sole proprietor might pay taxes at individual slab rates, while an LLP or Pvt Ltd company may offer better tax efficiency depending on revenue, compliance costs, and future growth plans. The key? Get expert advice and choose wisely. 2. Claim Every Business Expense Possible One of the biggest mistakes small business owners make is not claiming all eligible deductions. If it’s a business-related expense, it’s tax-deductible. Office rent, utilities, internet, software, employee salaries, marketing expenses, travel costs for work, depreciation on equipment—the list is long. Keep proper records and claim everything you legally can. You’ll be surprised how much this one habit can save you in taxes. 3. Don’t Ignore GST Input Credit If you’re paying GST, you must claim input tax credit on business-related expenses. This reduces your net GST payable and can save lakhs every year. Many businesses either don’t know about this or don’t track their eligible credits properly. If you're paying GST on rent, advertising, professional fees, or software—get that credit back. 4. Use Presumptive Taxation for Simplicity & Savings For businesses with revenue up to ₹3 crore and professionals earning up to ₹75 lakh, the government allows presumptive taxation—a fixed profit percentage of revenue is taxed instead of maintaining detailed accounts. Businesses: Tax is calculated on just 6% of total revenue (if digital payments) or 8% (if cash-based). Professionals: You can declare 50% of revenue as profit and pay tax only on that amount. No detailed books, no audits—just tax savings and peace of mind. The truth is, tax planning is not just for big corporations—it’s for every business owner who wants to keep more of what they earn. In life, only two things are constant—death and taxes. We can’t avoid the first one, but we can definitely optimize the second. If this helped you, share it with a fellow entrepreneur who needs to stop overpaying taxes. Let’s build wealth the smart way. #taxsavings #businessgrowth #entrepreneurship #smallbusinessowner #taxplanning #financialfreedom #gst #incometax #wealthbuilding #taxstrategies #moneytips #businessowner #startupindia #ca #taxconsultant #savemoney #investmenttips #financialliteracy #finance101 #legaltaxhacks

I have paid millions in taxes over the past decade. Yet, I have saved millions off my lifetime tax bill through tax planning. Here are 7 tax planning strategies I have used as an athlete and an entrepreneur: ~ 1) Retirement Accounts The four most common ones I have used: •401(k) •Sep IRA •Roth IRA •Solo 401(k) Example: Each time I contribute to one of these accounts I am either getting a current-year tax benefit (deferral) or a future-year tax benefit (tax-free growth). ~ 2) Tax Efficient Investing 90% of my net worth is invested in taxable accounts. I focus on things that can: •Compound efficiently •Defer the taxes as long as possible •Investments I want to hold for decades Examples: ETFs, Muni Bonds & Real Estate are 3 of my favorites. ~ 3) Tax Loss Harvesting Things to consider with TLH: •TLH can create a future tax asset •$3,000 in losses per year can offset ordinary income •Losses captured in a year can be carried forward to future years Example: My captured losses have helped me reduce my tax bill. ~ 4) Donate to Charity My favorite tool here is the DAF: •Gift appreciated stock •Invest inside the DAF •Grant stock and future gains to charity Example: I have maximized this by bunching my donations together in my highest earning years. High Tax Bracket = Bigger Tax Savings ~ 5) State Residency Federal taxes are required, state taxes can be a choice. •Several states have no state income tax •Florida, Texas, and Tennessee are the most popular Example: During my baseball career, I was a Florida resident saving me hundreds of thousands in taxes. ~ 6) Business Expenses The things you are already spending money on can be deducted as a business owner. •Phone bill •Legal work •Home office •Travel expenses Example: You are in the 37% tax bracket, and you get to deduct $50k during the year. Tax savings = $18,500 ~ 7) Tax Election Your LLC is an entity structure, not a tax election. Types of tax elections: •S Corp •C Corp •Partnership •Sole Proprietorship Example: Moment Private Wealth is an S Corp which saves me on self-employment taxes. Athletes can do the same thing with off-field income. ~ Taxes are a lifetime game. I have used these 7 strategies to keep more of what I have earned. If you found this helpful or it made you think, share it with your audience. *This is not tax, legal, or investment advice. Consult with your team of professionals. 📌 If you find this helpful, please share it with your network ♻️ and follow me Jacob Turner for more ways to get smarter with your money. 💵.