Please review the Important Disclosure Information set forth in the footer of this website.

11/22/2024

Business Owners Tax and Financial Planning Strategies

As the year ends, business owners should consider these impactful tax and financial planning strategies. Here are 23 tactics business owners can incorporate: 

1. Max Out Employee 401(k): Contribute the maximum to reduce taxable income and boost retirement savings.

2. Max Out Employer 401(k): Utilize employer contributions to further reduce taxable income.

3. Max Out Roth IRA/Backdoor Roth IRA: Contribute directly or via a backdoor method for tax-free growth.

4. Max Out HSA: Contribute to an HSA for triple tax benefits.

5. Max Out 529 Plan: Contribute to a 529 plan for state tax benefits and future education savings.

6. Maximize QBI Deduction: Optimize Qualified Business Income deduction to reduce taxable income.

7. Evaluate Entity Structure: Ensure your business entity aligns with future goals.

8. Review Financial Records: Ensure accuracy and compliance to avoid tax season issues.

9. Consider PTET: Pay state taxes through your business for potential deductions.

10. Defer/Accelerate Income: Adjust income timing to optimize your tax bracket.

11. Accelerate Expenses: Prepay expenses to increase current year deductions.

12. Use Dependent Care FSA: Cover eligible expenses to reduce taxable income.

13. Use FSA Funds: Spend FSA funds before year-end to avoid losing them.

14. Tax Loss Harvesting: Sell losing investments to offset capital gains.

15. Tax Gain Harvesting: Sell investments at a gain to utilize lower tax brackets.

16. Roth Conversions: Convert traditional IRA funds to a Roth IRA for tax-free growth.

17. Review Withholding and Estimated Taxes: Ensure adequate withholding to cover tax liability.

18. Donate Cash to Charity: Make charitable donations to reduce taxable income.

19. Donate Appreciated Securities: Avoid capital gains tax by donating appreciated securities.

20. Cost Segregation Study: Use bonus depreciation on investment property to reduce taxable income.

21. Invest in Qualified Opportunity Zones: Defer capital gains and benefit from tax-free growth.

22. Prepay Property Taxes: Maximize the $10,000 deduction limit by prepaying property taxes.

23. Use Annual Gifting Limit: Transfer money to family members to reduce your taxable estate.

The holidays and the end of the year are right around the corner. Act now to optimize your tax
and financial situation before the year ends. 


IMPORTANT DISCLOSURE INFORMATION 

Next Capital Management, LLC (“Company”) is an SEC registered investment adviser located in New York, New York. 

The Company may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. The Company’s website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Company’s website on the Internet should not be construed by any consumer and/or prospective client as the Company’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by the Company with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of the Company’s current written disclosure Brochure and Form CRS discussing the Company’s business operations, services, and fees is available on this website and/or from the Company upon written request. The Company does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to the Company’s website or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. 

Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by the Company), will be profitable or equal any historical performance level(s). Neither the Company’s investment adviser registration status, nor any amount of prior experience or success, should be construed that a certain level of results or satisfaction will be achieved if the Company is engaged, or continues to be engaged, to provide investment advisory services. The Company’s registration status does not imply a specific level of skill or training. 

Certain portions of the Company’s website (i.e., newsletters, articles, commentaries, etc.) may contain a discussion of, and/or provide access to, the Company’s (and those of other investment and non-investment professionals) positions and/or recommendations as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from the Company, or from any other investment professional. The Company is neither an attorney nor an accountant, and no portion of the website content should be interpreted as legal, accounting or tax advice. 

Please Note: Limitations. Neither rankings nor recognitions by unaffiliated rating services, publications, media, or other organizations, nor the achievement of any professional designation, certification, degree, or license, membership in any professional organization, or any amount of prior experience or success, should be construed by a client or prospective client as a guarantee that the client will experience a certain level of results if the investment professional or the investment professional’s firm is engaged, or continues to be engaged, to provide investment advisory services. 

To the extent that any client or prospective client utilizes any economic calculator or similar interactive device contained within or linked to the Company’s website, the client and/or prospective client acknowledges and understands that the information resulting from the use of any such calculator/device, is not, and should not be construed, in any manner whatsoever, as the receipt of, or a substitute for, personalized individual advice from the Company, or from any other investment professional. 

Each client and prospective client agrees as a condition precedent to his/her/its access to the Company’s website, to release and hold harmless the Company, its officers, directors, owners, employees and agents from any and all adverse consequences resulting from any of his/her/its actions and/or omissions which are independent of his/her/its receipt of personalized individual advice from the Company.