As summer heats up, it’s the perfect time for businesses to strategically plan ahead for taxes and find ways to save in 2024. Consider implementing these five tax planning ideas:
An annual review of health, dental, vision, and retirement benefits can not only reduce expenses, it can also be a source of tax benefits for your business. Remember, there are many options, including Roth 401(k)s, Traditional 401(k)s, SIMPLE IRAs, SEP IRAs, and defined benefit plans.
You may be able to take advantage of tax savings if you purchase business equipment and have it in service before the end of the year. In 2024, you can expense up to $1.22 million worth of purchases of qualified assets.
Here are two of the biggest changes to consider:
a. New electric vehicle credit. Businesses that purchase a qualified commercial clean vehicle may qualify for a clean vehicle tax credit up to $40,000.
b. New retirement plan benefit. If your business does not have a retirement plan, setting up a retirement plan is more affordable thanks to new rules. A tax credit equal to 100 percent of administrative costs is available for up to three years for qualifying businesses that set up new plans.
Changes in your business may cause you to consider an organizational change.
If you conduct business in more than one state, your tax review should include a review of state tax liability obligations.
We’re here to help! Please call if you have any questions about these tax saving tips.
Empowering business owners and individuals in South Jersey and Philadelphia to feel confident through proactive accounting and advisory solutions.
