Episode 12: Year-End Tax Saving Tips for Private Practice

Taxes can be a huge surprise if you haven’t planned how to pay for them. There’s no time like the present to start saving for taxes. You have until April 15 to come up with enough cash.

Today, Julie Herres of Greenoak Accounting shares year-end tax saving tips. Frequently, she is asked about what can be done to save on taxes. For private practice business owners—whether you are a sole proprietor or have a corporation, LLC, or partnership—it’s likely that a portion of your take-home income is not taxed.   

Episode Highlights:

• Tip 1: Accelerate expenses on what you need (software, vehicles, office supplies)
• Tip 2: Plan for retirement (SEP, IRA, other retirement accounts)
• Tip 3: Tack business use of personal vehicles (reimbursable business mileage)
• Tip 4: Take home office deduction (if room is exclusively used for business)
• Tip 5: Regularly review entity structure (most beneficial from tax perspective)
• Tip 6: Hire your children (shift income from your high tax bracket to their low tax bracket)
• Tip 7: Use Augusta Loophole (rent primary residence tax-free for up to 14 days per year)
• Tip 8: Take self-employed health insurance deduction if eligible and contribute to HSA
• Year-End Tip: Treat yourself to business credit card points for personal presents

Links and Resources:

Tax Information for Retirement Plans
Tax Information for Business Types
Tax Cuts and Jobs Act (TCJA)
Augusta Loophole
QuickBooks
TurboTax
GreenOak Accounting
Therapy For Your Money Podcast