Tax Planning Strategies for Businesses

Here’s what it means for a business to engage in good tax planning:

Avoid income recognition by generating tax-exempt income.

Defer income recognition by postponing the sale of assets, doing a 1031 exchange.

Maximize deductions by keeping receipts for business meals, using a portion of your home exclusively for business (home office deduction).

Accelerate deductions by using § 179 expensing, bonus depreciation, cost segregation.

Maximize tax credits by hiring individuals who face obstacles finding a job (work opportunity tax credit).

You can also reduce your effective tax rate by:
• Shifting income from high-tax jurisdictions to low-tax jurisdictions
• Shifting income from high-bracket taxpayers to low-bracket taxpayers
• Shifting income from high-bracket tax years to low-bracket tax years
• Converting ordinary income to capital gains
• And avoiding double taxation

—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
—
SUPPORT EDSPIRA ON PATREON
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
—
LISTEN TO THE SCHEME PODCAST
—
GET TAX TIPS ON TIKTOK
—
ACCESS INDEX OF VIDEOS
—
CONNECT WITH EDSPIRA
—
CONNECT WITH MICHAEL
—
ABOUT EDSPIRA AND ITS CREATOR

[RayaFlora]

This is a decent enlightening post that you have shared and appreciate your work in sharing the data. I value your endeavors and all the best. Praise your work and continue sharing your data.

[aryanasmith]

I am learning so much from watching your videos. Thank you so much for sharing this amazing source of information. This one is quite helpful.

[luissepulveda]

I would love to see a video about the Section 127 Educational Assistance Program as well! This is great!

[CristopherZampedri]

Cheers for sharing! Looking for guidance: My TRX Wallet has some Tether, and I have the seedphrase: -clean- -party- -soccer- -advance- -audit- -clean- -evil- -finish -tonight- -involve- -whip- -action-. Could you suggest how should I go about sending them to OKX Exchange?