A few days ago here on the SWC blog, we shared why it’s important for individual taxpayers to meet with their CPA over the summer. It basically boils down to being prepared. No one wants to learn in the first quarter of 2025 that their state or federal tax liability could have been dramatically reduced or altogether eliminated had they just met with their CPA for one hour in June, July, or August.

As a business owner, the same logic applies. Below are the top 10 reasons why you as a business owner, entrepreneur, or an investor with an ownership stake in a business should schedule a mid-year meeting with your CPA this summer.

Marni Walker of SWC

  1. Take Advantage of Depreciation Tax Breaks: Current tax laws offer generous depreciation deductions for qualifying assets. By discussing your plans with us, we can help you maximize your Section 179 deductions and first-year bonus depreciation, potentially saving you significant amounts on your tax return.
  1. Time Business Income and Deductions: Strategically timing your business income and deductions can lead to substantial tax savings. Whether it’s deferring income or accelerating expenses, we’ll help you make the right moves to align with your financial goals.
  1. Maximize the Qualified Business Income (QBI) Deduction: The QBI deduction can be a significant tax saver for owners of pass-through entities. We’ll ensure you understand the complexities and limitations of this deduction, helping you plan to maximize your benefits.

  1. Employing Family Members: Hiring family members can be an effective tax-saving strategy. We’ll provide guidance on how to ensure compliance and maximize the benefits, such as deducting wages and benefits on Schedule C or F.
  1. Plan for Qualified Small Business Stock (QSBC): If you own or are considering investing in QSBC, we can help you navigate the 100 percent gain exclusion available for eligible sales. Proper planning is essential to take full advantage of this tax break.
  1. Establish a Tax-Favored Retirement Plan: If you don’t already have a retirement plan in place, now is the time to consider setting one up. We can guide you through various options like SEP plans, 401(k) plans, and SIMPLE-IRAs, ensuring you choose the best one for your business.
  1. Review Year-to-Date Financial Performance: A mid-year review allows us to assess your financial performance and make necessary adjustments. This proactive approach ensures your business stays on track to meet its financial goals.
  1. Evaluate New Opportunities and Risks: Discussing new business opportunities and potential risks with your CPA can provide valuable insights. We can help you evaluate the financial implications and make informed decisions that align with your long-term strategy.
  1. Stay Compliant with Changing Tax Laws: Tax laws are constantly evolving, and staying compliant is crucial. Our mid-year meeting will keep you informed about any changes that might affect your business, ensuring you remain compliant and avoid potential penalties.
  1. Optimize Your Tax Strategy: A mid-year meeting is a perfect opportunity to review and optimize your businesses tax strategies, especially ones that allow you to defer income, accelerate deductions, and maximize your overall tax savings.

Scheduling a mid-year meeting with us is a smart move that can help you stay ahead of the curve, maximize your tax savings, and position your business for success. Contact us today by phone (858) 487-4580) or email (admin@swc.cpa) to schedule your meeting. Or you can schedule your 2024 mid-year tax planning meeting online.