SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
Beth A. Botti, CFP®, ChFC, CLU, CDFA™
Financial Consultant
California Insurance License #0G24537
612 Wheelers Farms Road, Milford, CT 06460
Phone: 203-877-6556 Ext. 169
Fax: 203-301-0736
Email: beth.botti@equitable.com
November/December 2020
Year-End Tax Tips for Business Owners
As the year draws to a close, it’s time to maximize your current year tax deductions and other tax planning opportunities. Here’s a brief checklist of moves you can make now to help reduce current or future tax exposure.
Pre-pay Business Expenses
You may be able to reduce your 2020 tax bill by pre-paying certain 2021 business expenses before year’s end. For example, you can renew subscriptions, pay ahead for advertising, business insurance premiums, rent, business licenses, and other items that don’t extend more than 12 months. Some other year end moves that can save taxes include:Maintenance
Repair broken equipment and physical plant items by the end of the year.Invest in Equipment
Buy business equipment and get it into service by year’s end. The Tax Cuts and Jobs Act (TCJA) allows businesses to take first-year deductions on capital equipment purchases of up to $1 million. This includes vehicles and trucks over 6,000 pounds.Maximize QBI Deductions
If you meet certain income limits, owners of S corporations, partnerships and sole proprietorships may deduct up to 20% of qualified business income (QBI). For tax year 2020, eligibility for the deduction begins to phase out at income levels of $163,300 for single filers and $326,600 for joint filers.* If you’re over the income threshold for 2020, consider finding some more deductions.Contribute to Retirement Accounts
Make matching contributions to employee 401(k)s.Contribute to Health Savings Accounts (HSAs)
Employer contributions to employee HSAs, including your own, are deductible to the employer.Deduct Losses
The CARES Act made it easier to take deductions for losses in 2018, 2019 and 2020, to help improve cash flow for struggling businesses. See your tax professional for details.Give to Charity
Even donated equipment, computers or inventory may provide a useful year-end tax deduction.Above all, be pro-active. Book your appointment with your tax professional well before the end of the year, so you don’t have to scramble.
*Exceptions apply for certain service businesses
GE-3144808(7/20)(Exp.7/22)
CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Duly registered and licensed financial professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of Utah, LLC in UT; Equitable Network of Puerto Rico, Inc.). Equal Opportunity Employer - M/F/D/V. Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal advice or services. Representatives may transact business, which includes offering products and services and/or responding to inquiries, only in state(s) in which they are properly registered and/or licensed. Your connection to this website does not necessarily indicate that the sender is able to transact business in your state. The information in this website is not investment or securities advice and does not constitute an offer. For more information about Equitable Advisors, LLC you may visit https://equitable.com/crs to review the firm's Relationship Summary for Retail Investors and General Conflicts of Interest Disclosure.
GE-6572038.1 (4/24)(Exp. 4/26)
CFP®, and CERTIFIED FINANCIAL PLANNER™ are certification marks owned by the Certified Financial Planner Board of Standards, Inc. These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements.
www.equitable.com
Check the background of this investment professional on FINRA's BrokerCheck
Equitable Advisors, LLC and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.