Business Tax Strategies: 6 Tips for Saving Money in 2024 

6 business tax strategies to consider in 2024

As a business owner, we understand how overwhelming it can be to stay on top of all the changes in tax policies. With new rules constantly coming into play, it may feel like a never-ending battle to keep everything in order. 

We get it; you just want to run your business and serve your stakeholders. We’re here to help make the tax process as painless as possible so you can keep doing what you love. To help simplify things, we’ve put together 6 business tax strategies to help reduce your business’s tax burden in 2024.  

R&D Tax Credit

One of the most lucrative tax incentives available to some businesses is the Research and Development (R&D) Tax Credit. By investing in innovation and research activities, you may be able to claim a tax credit that offsets a portion of your R&D expenses, no matter the industry. 

Work Opportunity Tax Credit (WOTC)

This credit offers incentives for hiring individuals from certain target groups who are more likely to have barriers to finding employment, such as veterans or those receiving government assistance. By employing qualifying individuals, you can also reduce your tax bill. 

Deduct the Purchase Price of Depreciable Assets

Section 179 of the U.S. internal revenue code features an immediate expense deduction that business owners can take for purchases of depreciable business equipment instead of capitalizing and depreciating the asset over time. You may be able to deduct up to ~$1.1M including equipment, supplies, vehicles, and other supplies needed to run your business. 

Take Stock of Bad Debts

Review your accounts receivable and identify any bad debts that are unlikely to be recovered. Writing off these debts as uncollectible can lower your taxable income and reduce your tax burden for the current year. 

Maximize Employee Benefits

Providing bonuses and contributing to employee retirement accounts are great ways to reward your hardworking staff. Both of these benefits also offer tax benefits for your business. These contributions are typically tax-deductible and can help lower your overall tax liability. 

Check for Obsolete Inventory

Businesses can deduct the cost of obsolete inventory that can no longer be sold or used. By identifying and disposing of outdated stock, you can reduce your taxable income. 

These 6 tips are fantastic strategies to remember as you start off 2024. We’d love to be your business’s proactive tax partners for next year’s returns to ease this burden for you. Reach out to us and let’s kickstart the process!