The Veteran CPA – Hurry and Get these Tax Deductions Before 12/31/21

It was a very difficult year, but many businesses in GA still improved their bottom line in 2021. People forget that when the economy goes down there is also a direct correlation to lives lost.

December is the month to get some of the biggest (and the most fun) deductions. We have until 12/31 as the deadline. Self-employed retirement accounts can be contributed for the 2021 year, up to the extension date.

If your business has a good amount of cash, and your net profit percentage is higher than 10%, it can be wise to consider these potential deductions:

  1. Get a Section 179 for Vehicles: A vehicle over 6,000 pounds can be deducted 100%.
  2. Purchase new office furniture, buy a nice artist painting for your office, or buy a new mounted TV for your office and conference room.
  3. Contribute to a self-employed retirement account, several different types, Solo 401k, SEP IRA, safe harbor 401k.
  4. Buy a rental property, preferably a beach rental! These puppies are producing some serious cash flow. Make sure you have a LLC, EIN, and that you are taking depreciation expense each year, buying a roof is expensed and not capitalized. (Great success!) Did you know you can do a Cost Segregation Study on your beach rental and get a huge deduction?
  5. Plan to finish 2021 with a higher W2 for your business so you can more easily qualify for that beach rental or commercial property. Life is just so much easier for a business owner when on a somewhat high W2, quarterly estimated tax payments are a pain.
  6. Buy GA low-income housing credits to save 10% on GA taxes, GA film tax credits have a serious shortage.
  7. Gift someone under $14,000 and you do not have to file a gift tax return. Neither party owes tax.
  8. Start investing in something you like, enjoy, and has intrinsic value doing as a hobby (Cryptocurrency, Trading account at major broker, Gold/Silver coins/bullion).
  9. Buy a commercial property and then have a cost segregation study performed.
  10. One of the best investments for anyone is spending more on advertising and marketing for your business.
  11. And for pete’s sake, if your net income is not 10% of your sales and your business is running well, raise your prices!