WHAT ARE TAX MITIGATION STRATEGIES?
When the government wants to incent consumers and businesses to adopt certain behaviors, they pass legislation that provides tax credits, deductions and refunds that can mitigate part or al of your tax obligations.
WHY LEARN ABOUT TAX MITIGATION STRATEGIES?...MONEY!
There are three kinds of tax mitigation strategies that would be helpful to familiarize yourself with:
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TAX DEDUCTIONS that reduce your taxable obligation prior to applying your effective tax rate to determine how much you owe.
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TAX CREDITS that are applied after you determine how much you own. A TAX CREDIT reduces the amount you owe dollar for dollar.
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PAYROLL TAX REFUND that is a refund of payroll taxes you've already paid to the government in the past and is not taxable.
HOW TO TAP INTO TAX MITIGATION STRATEGIES
Get up to $26k per W2 Employee
...even if you took a PPP loan!
...even if you didn't qualify before!
...even if you took ERC for 5 quarters!
The qualification criteria has CHANGED!!!
Get up to $9,600 in Tax Credits per W2 Employeee
Hire veterans?
Hire felons?
Hire people coming out of school?
Survey your potential new hires before hiring them to determine how much of a tax credit they could be work. Learn more
Speed up Depreciation
Depreciation on commercial property is generally taken over 41 years. The tax code allows it to be taken over 5, 7 or 15 years, depending upon the category of the asset. It is laborious and time consuming to perform the study so most CPA's don't offer that service, but think about how much it could save if you could depreciate $500k on a $1M property in one year