3 Ways for a Business to Lower their 2020 Tax Bill
The end of the fiscal year is coming. Are you ready, or are you feeling some kind of way?
Well, you can put down the paper bag for a moment because we’ve got some blood-pressure reducing tips for you on how to act now to reduce your tax bill!
Consider Billing Late
One clever way to reduce your tax bill in the 4th quarter is to defer large payments or bills into next year. As a business owner or independent contractor, you have the ability to move your invoice dates to later in December, ensuring that your payments won’t come until the next year.
Make a hefty donation
Feel great about donating to your favorite charity, all while celebrating the reduction you will receive in this year’s tax bill! Ask Forrest Tax about contributing stocks or assets to get an even bigger benefit!
Max out that Retirement Contribution
If you can, contribute the max amount into your 401k. If you are able to deposit at least as much as is matched by your employer, great! If you can do more (up to $26,000 for those who are 50 years old or older) that’s a wonderful way to both plan for the future, as well as reduce your annual tax bill!