Strategies for Tax Planning to save your the precious dollars:

Ed Lloyd & Associates PLLC believe that small business owners overpay a lot of money on tax every year whereas this money can be saved and used for business purposes. They recommend strategic tax planning which ensures that the business owners pay the least amount of tax.

  • Claiming the Deductions which the Business is Eligible For:

Ed Lloyd CPA recommends that first and foremost the business owners should be aware of all the deductions which they can claim. The two most common deductions which all small business owners are eligible to claim are

  • Expenses of Home Office:

If a business owner has an office at his home, then he is eligible to deduct a part of the office expenses in relation to the area that he uses as office at home. Some of the common expenses that a person using a home office is eligible to claim are

  1. Utilities
  2. Property Taxes
  3. Repair and Maintenance
  4. Mortgage Interest
  5. Home Insurance
  • Expenses of Car:

If a business owner uses a car for his business purpose then he is eligible to claim the portion that he uses for work purpose. This could include driving to and from work or driving for other business needs. The expenses that can be claimed are

  1. Insurance
  2. Oil and Fuel
  3. Depreciation
  4. Repair and Maintenance
  5. Lease
  6. Tolls and Parking
  • Benefiting from Splitting the Income:

A person is required to pay more taxes if he earns more income. Thus, Ed Lloyd & Associates PLLC recommends that splitting the income with a family member could help in reducing the income and thereby the taxes. The IRS allows this strategy if the person with whom the income is split actually works for the business and is paid the same amount that other people on the same post are being paid.

  • Incorporating the Business:

If a business owner has enough resources to handle the costs that occur on incorporating a business and if a business can save tax money by incorporating it is always advisable that the business owner incorporates his business.

Ed Lloyd & Associates PLLC recommend these strategic tax planning tips for business owners to save on taxes.

Want to know about the services of Ed Lloyd & Associates? Read – Tax Services of Ed Lloyd & Associates PLLC


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ED LLOYD & ASSOCIATES PLLC: ONE OF THE BEST FINANCIAL ADVISORS IN CHARLOTTE