Business Owners Can Save 15 to 30 percent On Their Taxes by Utilizing Tax Strategy, Says CA Law Firm, Brotman Law
SAN DIEGO , July 31, 2024 /PRNewswire/ — In an ever-changing tax landscape, Brotman Law is dedicated to empowering business owners with strategic tax-saving opportunities that can profoundly impact their financial health. While many business owners assume that their annual visit to a CPA constitutes tax strategy, this is primarily about compliance. True tax strategy delves deeper, focusing on understanding the intricacies of your financials — the how and why behind the numbers — to unlock real-world tax savings and substantial financial benefits.
Maximizing Deductions and Credits
Many people’s initial definition of tax strategy revolves around deductions and credits, which are indeed significant. These tools can cumulatively reduce your tax burden substantially, but they are essentially the side dish rather than the main course of tax strategy. There are numerous tax credits available that many businesses aren’t aware of, and while not all may apply to every business, strategic use of applicable credits can lead to substantial cost reductions. Below are some key opportunities to consider:
- Research and Development (R&D) Tax Credit: Designed to encourage innovation, this credit allows businesses to offset costs related to research and development activities.
- Section 179 Deduction: Enables businesses to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year.
- Bonus Depreciation: Allows businesses to depreciate a large percentage of the cost of eligible assets in the year they are placed in service.
Strategic Tax Planning
Real tax strategy goes beyond credits and deductions, and it does not need to be complicated or expensive. There are five key areas to focus on when devising a tax strategy, such as ensuring income is taxed correctly and in the appropriate state, income and expenses within the enterprise are being optimized, the transfer of income from the enterprise to the individual is optimized and maximizing any credits or deductions available to the business. Some factors we consider immediately, and ones that could make a significant impact on your tax bill include:
- Entity Selection: Choosing the right business structure (e.g., LLC, S-Corp, C-Corp) can have significant tax implications.
- Income Deferral and Expense Acceleration: Timing income and expenses to optimize tax brackets and deductions.
- Retirement Plan Contributions: Setting up and contributing to retirement plans (e.g., 401(k), SEP IRA) to reduce taxable income.
Professional Opinion
“Tax planning is not just about minimizing tax liability; it’s about strategically positioning your business for long-term success,” says Sam Brotman, managing attorney at Brotman Law. “Our firm is dedicated to providing business owners with the tools and knowledge they need to make informed tax decisions and achieve financial stability.” Brotman Law is a national tax law firm headquartered in San Diego, California. With over a decade of experience, the firm has helped thousands of businesses and individuals navigate the intricacies of tax law, generating tax savings averaging between 15to 30percent for their clients. Brotman Law is known for their compassionate approach, deep expertise, and commitment to achieving the best possible outcomes for clients. For more information or to book a consultation, visit www.sambrotman.com or call (619) 378-3138.
Contact:
Aliyah Yates
Marketing Manager
Brotman Law
(619) 378-3138
[email protected]
About Brotman Law
Brotman Law is an established team of law professionals that have been helping clients and their businesses navigate the intricacies of tax law for over 10 years. The firm works with business owners of companies between $5 million and $100 million in revenue and other successful individuals to create and implement tax strategies designed to drastically reduce or eliminate taxes. On average, Brotman Law generates tax savings averaging between 15 to 30 percent for their clients. The firm is dedicated to providing every client with exceptional legal services accompanied by a compassionate approach that is unheard of in the industry. Beyond just successes with the IRS and tax agencies, the Brotman Law team is singularly united by genuine empathy for all clients, a strong desire to help, and never-say-quit tenacity that propels the firm to the best possible results on their clients’ behalf. For more information or to book a consultation with the Brotman Law team, visit SamBrotman.com or call (619) 378-3138.
SOURCE Brotman Law
