Have you heard that only two things are certain in this life? That’s death and taxes. Sounds funny? Well, that’s true. But are you aware you can reduce your tax bill while you still live? Yes, minimizing your tax expense will free up capital to save, hire, and invest. However, that minimization has to start with consistent planning. Taxes are one of the biggest expenses you have in your organization. That’s why Tyler McBroom is at the lead in helping you minimize your tax bill.
Tyler McBroom is the CEO of Measured Results, CPAs, a CPA (accounting) firm in California and Texas. They work with business owners who make over $250,000 of their business’s net income to help them pay less tax, increase their profits, and understand their financial picture. He is the go-to tax and finance expert for business owners. He is a trusted guide helping business owners understand the complex but very important “number” side of their business. His company is a profit-center for its clients. This fact means that they will save you more tax dollars and increase your profits more than you will pay for them. Besides taxes, Tyler has been able to build his business while having a great marriage and family. He is at the forefront of advocating a great culture where his team members can show up to their work every day and are excited to grow with them. Here are five tips to help you minimize your tax bill.
1.Tax Planning
Did you know that planning is the key to the successful and legal reduction of your tax liability? Tyler recommends that you apply tax saving strategies to maximize your after-tax income. He prioritizes their mastery of the current tax law, complex tax code, and new tax regulations by attending frequent tax seminars. Tyler and his company continually look for ways to reduce your tax payment throughout the year and not just at the end of the year.
2.Keep Current Accurate Books To Lower Taxes
Do you own a small business, and bookkeeping has become a challenge? Yes, poor bookkeeping can mess with you when it comes to tax payments and filing your returns. Tyler helps you set up an easy system that allows you to keep your books in tip-top shape. Today’s tax laws are so complicated that filing a relatively simple return can be very confusing. It is easy to overlook credits and deductions which you are entitled to. Tax preparation is essential if you want to reduce your tax bill.
3.Splitting & Shifting Income
Did you know that splitting your income among family members or legal entities can help you get more income tax to the lower bracket? I thought you should know. Also, shifting expenses or incomes from one year, say 2019, to another 2020 to have them fall where it will be taxed at a lower rate.
4.Deferring Tax Liabilities
Deferred tax liability refers to that tax that is assessed but has not yet been paid. Therefore you can minimize your tax bills through individual investment choices as contributions, pension plans, and other similar plans. The deferral usually comes from the difference in timing between when the tax accrues and paid.
5.Tax Deductions
Another way to minimize your tax bills is by structuring your money to pay for things you enjoy, such as a vacation home. You have just purchased a vacation home exclusively for personal enjoyment; you can deduct your real estate taxes and mortgage interest on a primary residence.
In conclusion, minimizing your tax bills can help you grow and preserve assets. You Can also choose to keep your money and then pay fewer taxes later. Therefore you can reduce taxes on your income, estate, gifts, investments, and retirement distributions and see your tax bills reduce significantly.