Often Overlooked Small Business Deductions
If you're new here, you may want to subscribe to my RSS feed. If you have any questions, please see my policies page or if you would like to contact me, you can do so here. You can find out more about me here. I sincerely thank you for visiting!
Jeff Howard runs one of my favorite recently discovered blogs. He has several helpful tips for getting cash out of your small business without paying taxes on it.
The last idea is probably the best one (and the biggest dollar-wise). Setting up a day care benefit is sort of like a cafeteria plan (some places call it a Flexible Spending Account). Instead of the person setting aside the money, the business agrees to fund it as a benefit. The employee gets the tax-free income and the employer deducts the payment.
Of course, you will need help to set up this system and there will be a cost. The other suggestions have no cost but are a much smaller benefit.
As always, don’t forget to put away money in your retirement accounts tax-free. That is by far the largest way to pull money out of a small business tax free. You can’t use it right away, but you can build quite a nice nest egg.