Are you leaving money on the table when it comes to your taxes? If you're a small business owner, the answer is probably yes! In this episode, Danielle Hayden, CPA and founder of Kickstart Accounting, Inc., covers the essential tax deductions you should be using but might be missing or ignoring. From turning charitable donations into advertising dollars to maximizing deductions on equipment, training, and even paying your children, Danielle breaks down tax strategies that can save you money while still maintaining a healthy business in line with your goals. 

Key Takeaways: 

• Charitable Donations Can Double as Marketing: Sponsoring events or donating branded items makes them deductible.

• Clothing & Equipment Expense Write-Offs: Add your logo to business attire as a uniform to make it a deductible expense, and really think through what personal expenses you use for your business, such as a new laptop or webcam.

• How to Make Gift Giving a Deduction: There are strict IRS limitations on gift giving, however gifting your employees or contractors with equipment that is pre-loaded with work content and/or branded is a way to gift as a deduction.

• Continuing Learning is a Business Expense: Whether it’s a conference, a training session, or even a book, if it’s an expense that contributes to your business and industry knowledge, no matter how small the cost, it is a business expense. 

• Retirement & Healthcare Expense Deductions: Utilize HSAs, IRAs, and other plans to save on taxes while securing your future. 

• Paying Your Children through Your Business: A structured payroll for your children not only is a tax deduction but also helps them build wealth, financial literacy, and their resume as a tax-paying individual. 

• Strategic Business Travel & The Augusta Rule: A well-timed conference or workshop can combine personal and business travel the right way to increase deductions. Plus, learn how the Augusta Rule can help business owners with tax-free rental income for 14 days per year.

• Balancing Tax Write-Offs with Your Business Goals: Deducting expenses is important for tax savings, but, depending on what you want out of your business, deducting too much does have an affect on the overall value of your business, so you want to make sure your write-offs are in line with your goals. 

Topics Discussed:

Pre-Tax vs. Post-Tax Spending (00:0:52 – 00:04:26)

Charitable Donations as a Tax-Deductible Marketing Expense (00:06:51 – 00:07:39)

Clothing & Equipment Deductions (00:08:10 – 00:08:57)

Gift Giving as a Business Expense (00:10:22 – 00:11:25)

Conferences, Training, & Learning Write-Offs (00:11:25 – 00:12:26)

Retirement, HSA, and Healthcare Deductions (00:12:51 – 00:15:06)

Paying Your Children (00:15:06 – 00:16:25)

Capitalization Policy (00:16:26 – 00:17:53)

Business Travel Write-Offs & The Augusta Rule (00:17:53 – 00:23:50)

Striking the Balance between Deductions and Business Goals (00:20:02 – 00:24:27)

 

Resources:

Episode 126 | Small Business Gift Giving: A Holiday Tax Guide

Episode 136 | Health Care Tax Deductions for Small Business Owners Explained 

Episode 137 | Can You Legally Hire Your Children?: How to Pay Your Kids, Get Tax Advantages, & Create Generational Wealth

Episode 188 | Beyond the Business: Preparing for a Secure Retirement

Free Gift | ‘How Much to Pay Yourself as a Business Owner’ Calculator 

KSA Tax Partners | https://ksataxpartners.com/ 

 

Book a Call with Kickstart Accounting, Inc.:

https://www.kickstartaccountinginc.com/book 

 

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