My top tax savings tip for end-of-year!
I even had a booth where people could ask legal questions and enter my event-only giveaway of the newest Apple Watch, AirPods, and AirTags. So much fun!
Now that I’m back, I want to give you my top tax savings tip for the end of the year. (Because who doesn’t want to save money on taxes?!)
THINKING about taxes isn’t fun, I know, but grab your favorite mug of DF hot chocolate and check this out…
Legal Love™ Tip:
Make big purchases for your biz before year-end to save on your taxes.
Most people aren’t aware that making certain purchases for your biz in December can reduce your taxes. Cha-ching! 💰
Know this:
⏰ All purchases for your business that are legitimate business expenses on or before December 31st can be taken as a tax deduction THIS YEAR.
Why? Because the timing of WHEN you spend can have an impact on how much taxable income you have. (But, caveat – always talk with your accountant for advice about your own situation.)
In general, if you need to make a big purchase, consider purchasing it NOW before the end of 2023 to help offset this year’s income.
What kind of “legitimate business expenses” am I talking about?
Here are 5 examples of big purchases to make before year-end:
1. New Office Equipment.
Like a new computer, laptop, printer, desk, office chair, file cabinet or bookcase for your office.
2. Travel Costs.
Expenses for speaking at or attending conferences next year, like airline tickets, hotel reservations, and conference registration fees.
3. Courses & Retreats.
Evergreen online courses, programs, or in-person retreats that you can register for now.
4. Office Supplies.
Stock up on printer cartridges (whew! they’re expensive these days!), pens, papers, and post-its – if you didn’t get them this Fall during the back-to-school dash, get ‘em now.
5. Legal Documents.
Yes, my DIY legal templates count as a biz expense. (Shameless plug, but it’s true!) Like a Client Agreement for your new high-end program for 1-on-1 clients, Terms of Use for your group program launching in January, an Overnight Retreat Agreement for the fab retreat you’re planning on the white sand beaches of St. Lucia or the rainforests in Costa Rica.
Don’t move forward without legal docs to protect you. Get them now so you’re ready to go for next year.
By making these purchases NOW, even if you don’t need them for a few months, you get to take the tax deduction THIS YEAR.
(Just know that you can’t ALSO take it next year. You can only take the expense ONCE and you have to take it in the year in which you spent the money. Because that’s how the “cash method” of accounting works.)
For MORE end-of-year tax savings tips (yes, I have more!) and a much longer list of legitimate business expenses…
☑️ Have a listen to the Legally Enlightened Podcast Episode 40 here.
In this short 21-minute podcast episode you’ll learn:
- a big list of legitimate business expenses (<– this is key!)
- 3 tips for how to record your business expenses & income (I love these!)
- when to hire an accountant
- what to spend money on before year-end
- when to set up a retirement account
… and a partridge in a pear tree! (JK, I couldn’t resist.)🐦🍐🌳
And oh! Know that I align tax prep with the solar plexus chakra because having clarity about money and paying taxes ethically helps you feel confident and empowered as a biz owner.
Sounds like a good way to wrap up the year with a bow, yes?🎁
Make these smart tax moves before December 31st.
Here’s to saving on taxes and HAPPY HOLIDAYS!
