I'm curious as to how many of you had your CPA advise you to buy a car by the end of last year. These are some of the things that irritate me. You'll go to your CPA and say, "OK, it's the end of the year, I've made some money, what can I do to lower my tax burden?" Buying a car, purchasing equipment, or contributing to your 401(k) are the two most common items we hear about.
Neither of them are horrible, but I'd like to focus on the automobile today. I've heard of people coming into our offices and saying, "Yes, I bought a new automobile last year for this amazing tax write-off." Did your CPA tell you that the vehicle must weigh more than 6000 pounds? Did they make it clear that it must be purchased in the name of the firm, not as a personal vehicle? These are the three most common errors we encounter. If it isn't purchased in the company's name, you won't be able to claim the tax deduction that your CPA mentioned.As a result, if they did not inform you, you will not be eligible for a tax deduction. I'm going to be furious! Clients that are enraged have been seen by me.
It's the start of a new year. If you know 2022 will be a wonderful year, buy a car and make sure you ask your CPA or Tax Strategist how to do so correctly. However, if you do not want or require an automobile, do not get one. There are more than 360 tax alternatives available to business owners, real estate investors, crypto currency users, and others. Any of the 360 tax methods listed above will help you save money on your taxes.
You only heard me mention two of them: buying a car and putting money into a 401(k). What about the capital insurance company, your children's education, and the masters exemption? For more information on these tax suggestions, visit our YouTube channel. Here is a link to our YouTube channel.
These are simple techniques for business owners, and that is what we do, which distinguishes us from a CPA with a few tricks up their sleeve. After ten years, if you acquire a car every year, you'll have a fleet. 401Ks are fantastic, but there are better strategies out there, such as defined benefit plans, defined contribution plans, and so on. When you engage with a tax consultant, you have more options.
Here's where you can get a free tax savings analysis.
CEO & Tax Strategist - SaveOnTaxBill