Summer's winding down and fall brings a fresh set of tax deadlines. We cover S-corp elections, home office deductions, and the one bookkeeping habit that saves our clients thousands every year.
S-Corp Election Deadline: Is It Right for You?
If you're operating as a single-member LLC and your net profit is consistently above $50,000 per year, an S-corporation election could save you significant self-employment taxes. The election must generally be filed within 75 days of the start of the tax year you want it to take effect, but late elections are sometimes granted. Talk to us before year-end to model the numbers for your specific situation.
The Home Office Deduction: Stop Leaving Money on the Table
The home office deduction is one of the most underutilized deductions for self-employed individuals and small business owners. If you use a portion of your home regularly and exclusively for business, you may be able to deduct a percentage of your mortgage interest or rent, utilities, insurance, and depreciation. The simplified method allows $5 per square foot up to 300 square feet. We can help you determine which method gives you the larger deduction.
The One Bookkeeping Habit That Changes Everything
Reconcile your bank accounts every single month — without exception. This one habit catches errors, prevents fraud, ensures your books are accurate for tax time, and gives you a real-time picture of your cash position. If you're not doing this yourself, our bookkeeping team can handle it for you starting at $300 per month. Clean books mean fewer surprises and lower accounting fees at year-end.
From the Firm
August marks our firm's anniversary month. We're grateful for every client who has trusted us with their financial future. As a thank-you, we're offering a complimentary 30-minute financial health check for any existing client who refers a new client to us this month. Just mention this newsletter when you call.