My top tip to save money on taxes before December 31
Want to save money in taxes before the end of the year?
Though I bet you’d rather have a sharp stick in the eye (as my mother always used to say!) than deal with taxes, right? Ease the pain by grabbing a mug of DF hot chocolate and check out my top tax tip.
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!
Whatever you purchase for your business as a legitimate business expense on or before December 31st can be taken as a tax deduction THIS YEAR.
Depending on your income and expenses, when you spend can have an impact on how much taxable income you have. This means that if you need to make a big purchase, you might want to consider purchasing it now to offset your 2022 income.
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 what you need for 2023 now.
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.)
For more of my end-of-year tax savings tips…
Have a listen to the previously-aired Legally Enlightened Podcast Episode 40 on iTunes here or on my website 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 knowing important tax tips to save money and love up your biz!
Speaking of wrapping up 2022 with a legitimate business expense, join me for a life-changing VIP 1-on-1 Retreat in Sedona in March 2023!
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Learn more and book your VIP Retreat here. (But hurry! There are only 2 spots left!)
I can’t wait to welcome you to Sedona this Spring!