By Dawn J. Hryshko, CPA
Many taxpayers dislike the dreaded tax filing season; but there is a way to prepare, and possibly minimize, the taxes you pay. Below is a list of some tax saving strategies that may reduce your 2015 taxes.
- The 2015 auto mileage deduction is 57.5 cents per mile for business travel. A company-owned vehicle may produce a greater tax benefit due to depreciation and actual expenses associated with the vehicle. There are limits for personal use of company owned vehicles that should be considered before determining which method would be most beneficial.
- Timing of revenue recognition and expense deductions. Cash basis taxpayers can prepay expenses before year-end that pertain to the next year and obtain a tax deduction this year. Likewise, services rendered in December can be billed in January to push income into the next tax year.
- If you work from home and do not have another location to work from, you can take a tax deduction for business use of your home.
- Pay family members who are in a lower tax bracket for work performed in your business.
- Establish a retirement plan for your business or increase your pre-tax contribution to an employer-sponsored plan.
- Contribute the maximum to your HSA.
- Maximize the Section 179 expense deduction for purchases of ‘new’ property used in your business.
- Properly classify business meals between what is 50% deductible and what is 100% deductible.
- Shift itemized deductions to business deductions.
- Maximize the use of business gifts.
- Use of tax credits when applicable.
- Contribute to a 529 plan and receive a $2,000 deduction per beneficiary on your Ohio tax return.
- Utilize the Ohio Small Business Deduction.
Every tax situation is different. Consult your tax advisor to learn whether any of these items may benefit your tax situation.
Hryshko & Associates was established as a full service boutique CPA firm catering to the sophisticated needs of our clients. We strive to strike the perfect balance between small, local, attentive service and professional experience and expertise.
Dawn Hryshko, owner, has over 25 years of tax and business consulting experience with both public, privately held, and family-owned entities. She was the Tax Director of a multi-billion dollar real estate company based in Cleveland, Ohio. Dawn spent 19 years in Public Accounting , starting at a Big 8 firm in Cleveland, where she specialized in tax consulting for businesses in the real estate and construction industries. Dawn also served on many boards and committees throughout her career while being a dedicated mother of four children.