Tax liabilities – they’ll be the death of us all, amirite? This year especially, you may be working on a fraction of your usual sales which makes you more likely to hold off on regular business expenditures. And I get that. But let me ask you, are you maximizing your tax deductions? Do tax deductions pay a role in your buying decisions? This year is all about getting creative and maximizing your tax deductions. Let me break it down for you.
Forget Being Cheap – Buy Quality. I get it – you want to save every penny. What happens when you buy cheap office supplies and furniture though? How long do they last? How often do you have to replace them? Are you really saving money? Time? Energy?
Guess what, you’re not.
Here’s the other problem. You get such a small tax deduction for the cheaper supplies.
Here’s a tip – spend the money. Yes, buy higher quality and more expensive products. Treat yo self. Say yes to that ergonomic chair that won’t leave you hobbling with back pain. Go for the gel ink pens that glide on paper like an Olympic Ice Skater and keeps you writing for days. These office expenses last longer, resulting in a higher tax deduction, and increase productivity. Win win win.
Allocate your Expenses: Business vs. Personal
Get serious with yourself. You use your cellphone for more than personal use, right? Why not write off your business expenses? Your cell phone isn’t the only mixed-use item. What other expenses do you have that you use for business, but let yourself think it’s a personal expense? Your computer? The wi-fi?
Get creative, girlfriend. Deduct those coins!
Let’s say you have a house cleaner coming through twice a month to polish your home. Where do you conduct your business? Is it in your home? Boom – you have another tax deduction. Just like you write off a part of your home mortgage for business, you can write off the cost of the house cleaner for the office part of your home. On its own, it may not seem like a lot, but every little bit adds up to tax savings.
Do you travel to change up the pace or to get a project done? Sometimes, especially now, you need a quiet weekend to decompress or meet a work deadline, or both. With everyone home these days, it can be impossible to get shit done. Sometimes you wanna get away from it all. If you book a flight, stay at the Hilton to write a book, make coaching calls, or seal your next million dollar deal, it’s business as usual! Write off those expenses. And don’t forget your meals.
This year you’ve got to get creative to maximize your tax deductions. Yes, keep it legal, but girl, claim those tax deductions! Whether your business is faring better or worse due to the pandemic, we can all agree that we are playing it a bit safer when it comes to spending. Nothing in life is guaranteed except the fact that taxes gotta get paid. Pay attention to your expenses, make smart purchase decisions, track everything, and watch your tax bill shrink.
To more money in our pockets,