TaxRearview Mirror · Are we current, and what do we owe?
What can we do to minimize what we owe?
Lowering your tax bill legally is a planning job, not a filing job. The choices that matter most have to be made before the year ends.
Filing looks back; planning looks forward. Most owners only talk to their CPA at filing time, when the choices that matter most are already locked in.
An approach
- Know what you owe first. You can’t reduce a number you haven’t calculated. Start from this year’s projected bill.
- Book a planning meeting before Q4. Bring year-to-date numbers and a projection for the rest of the year.
- Review structure and owner pay. Ask whether your entity type still fits, and what mix of salary and distributions is reasonable for your role and size.
- Time the big moves on purpose. Equipment purchases, bonuses and retirement contributions can shift tax between years. Decide deliberately, not in late December.
- Put a dollar figure on each idea. Leave with a short written plan: each move, what it saves, who owns it, and by when.
You can answer it when
- A planning conversation happens every year, before Q4.
- Each tax-saving move has an estimated dollar amount.
- You know why your entity and owner pay are set up the way they are.
Amplify doesn’t do tax work. If you need a tax advisor who plans ahead, we’re glad to introduce you to one.
Related
Want a hand getting this part of your Finance Seat in order? We’ll point you to the right help, even when it isn’t us.
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