If you are a regular reader here you know that we put a very heavy focus on tax savings or tax strategies you can implement to ensure you pay the least amount in taxes as legally possible.
You’ll often times see us talking about baseline tax strategies and then advanced tax strategies.
Someone in our Free Facebook Group asked how a baseline tax strategy is different from an advanced tax strategy so that is exactly what we are going to break down here!
What Are Baseline Tax Strategies?
Strategies every business owner should take advantage of!
- Easy to Understand
- Easy to Implement
- Generally no cost or inexpensive to implement.
- Available to business owners of all sizes. Whether you are making $50k a year or $1MM a year, baseline tax strategies are available to you.
- Maximizing Deductions
- Meals, Travel, Supplies, Utilities, Rent, Equipment, Advertising, Postage, etc.
- Hiring Your Kids
- Home Office
- 14 Day Home Rental
- Retirement Options
- Entity Structure / S Corp
- Depreciation / Business Vehicles
- Health Insurance / Costs
- Accountable Plans
- Capitalization Policies
- and so much more!
- Maximizing Deductions
- Essentially baseline tax strategies are the ones that businesses, no matter your size, should be learning, researching, and implementing to ensure you are paying the least amount in taxes as legally possible.
What Are Advanced Tax Strategies?
Once you hit a certain point in household income, these comes into play.
- More complex / difficult to understand.
- Harder to implement
- Generally have some costs associated with them.
- Riskier and need to make sure they are setup and managed correctly.
- Provide massive tax savings.
- General Qualification Threshold: Household income (regardless of it’s business income or not) of $250k+
- These are going to be reserved for higher income earners and the reason is because often times the learning curve and cost associated to them would outweigh the tax savings they provide until you hit that threshold.
That is it! So now that you understand baseline tax strategies vs advanced tax strategies, we can help.
For more details along with additional training and tax strategies to ensure you are paying the least amount in taxes as legally possible, check out our Tax Minimization Program!
If you don’t have an accounting or tax advisor (or you need assistance with anything discussed), click here to book your complimentary strategy session with JETRO.