Small business like non Gamstop casinos owners face many daily tasks that stretch their time and resources. Managing finances and other responsibilities calls for careful attention to tax matters. Effective tax planning can help reduce liabilities and ease financial pressures.
Key Tax Planning Strategies
1. Lower Adjusted Gross Income
A business owner may reduce taxable income by managing salary levels and increasing contributions to tax-deferred retirement schemes. Keeping track of deductible expenses and using a health savings plan can also lower the adjusted gross income.
2. Use Strategic Tax Elections
Making the right tax elections is important. Under Section 179, a business may deduct up to $1,250,000 of the cost of qualifying equipment. Bonus depreciation is another option. The rates are changing over time. The table below summarises the bonus depreciation rates:
Table 1: Bonus Depreciation Rates
| Year | Rate |
| 2023 | 80% |
| 2024 | 60% |
| 2025 | 40% |
Selecting between immediate deductions and depreciation over several years may benefit businesses expecting higher profits in the future.
3. Review Exit Planning and Wealth Transfer
Revisiting exit plans and wealth transfer methods helps business owners adapt to changing economic conditions. Reassessing the business structure and utilising tax credits can lower the tax burden when income fluctuates.
4. Acquire Assets at Year End
Purchasing new assets before the end of the year may allow the business to benefit from current depreciation rates. Acquiring assets on time may help offset high profits and lower taxable income.
5. Assist Employees with Student Loans
Some employers are able to repay a portion of their staff’s student loans. When done correctly, these repayments are not counted as taxable income for the employee. This measure can build goodwill while reducing payroll tax liabilities.
6. Offer Fringe Benefit Plans
Providing benefits such as medical or dental insurance, childcare support, and tuition reimbursement may reduce overall tax liability. Employers should check the rules on eligible benefits to avoid any compliance issues.
7. Take a Tax-Free Loan from the Business
Business owners may be able to borrow from their company at low or no interest. It is important that the loan complies with the Applicable Federal Rates set by the IRS.
8. Utilise Carryover Deductions
Some deductions are not fully used in the current year and can be carried over to future years. Items such as capital losses, business credits, and charitable contributions may help offset income in later periods.
9. Implement Accountable Plans
Using an accountable plan for employee expense reimbursements means that the expenses do not count as taxable income. This arrangement benefits both the employer and the employee by reducing the tax liability on reimbursements.
10. Abandon Property to Claim an Ordinary Loss
If a property holds no value, abandoning it might produce an ordinary loss rather than a capital loss. Ordinary losses are fully deductible, whereas capital losses can be subject to limits.
11. Defer Taxable Income
Deferring income may be advantageous if lower earnings are expected in the next tax year. Techniques such as delaying invoice dispatch or prepaying certain expenses help shift income to a later period.
12. Employ Family Members
Hiring a spouse or children can provide tax benefits. Payments to family members, within set thresholds, may not attract payroll taxes. Income received by children below the IRS threshold can be tax-free.
13. Reassess the Business Entity
The type of business entity has a significant effect on tax liability. Changing from a sole proprietorship to an LLC or even electing S Corporation status may reduce self-employment taxes and provide other benefits.
14. Write Off Bad Debts
When customers fail to pay, writing off these bad debts can reduce taxable income. Regularly reviewing receivables helps ensure that uncollectible amounts are not overlooked.
15. Review the Accounting Method
Choosing between cash and accrual accounting affects the timing of income and expense recognition. A business owner may review the method in use and, with professional advice, select the one that best suits their situation.
16. Check for Penalty Relief
Late filing or underpayment penalties can be reduced or waived. It is advisable to verify eligibility for relief with the IRS, as the first penalty is often removed under certain circumstances.
17. Reduce Outstanding Debt
Paying down business debt may lower interest expenses, which are deductible. Extra payments on loans may reduce the interest burden and improve the financial position of the company.
18. Stay Updated on Tax Law Changes
Tax laws change regularly. For instance, the standard deduction has increased and business meal deductions have reverted to their previous levels. The table below shows the updated standard deduction figures for the 2025 tax year (values are in US dollars):
Table 2: Standard Deduction for 2025
| Filing Status | Deduction Amount |
| Single or Married Filing Separately | $15,000 |
| Married Filing Jointly or Qualifying Widower(er) | $30,000 |
| Head of Household | $22,500 |
Remaining informed about these changes can help a business adjust its strategies accordingly.
19. Seek Advice from a Tax Advisor
A tax advisor can tailor strategies to meet a business’s specific needs. Professional advice may prevent costly mistakes and ensure that all opportunities for savings are fully used.
Frequently Asked Questions
How Much Tax Does a Small Business Pay?
Small business tax obligations vary depending on the structure and earnings. Typical taxes include income, self-employment, estimated, employer, excise, and sales taxes. On average, the effective tax rate has been reported at around 19.8%, though this figure may differ with the business structure and other factors.
Why Is Tax Planning Important?
Tax planning ensures that obligations are met in a timely manner. By managing deductions and timing income, a business may avoid surprises at tax time. It also helps in preparing for penalties and optimising cash flow.
How Can a Retirement Savings Plan Help?
Setting up a retirement plan, such as a 401(k), SEP IRA, or SIMPLE IRA, may offer significant tax deductions. For smaller businesses, start-up costs for retirement plans can sometimes be deducted up to $5,000 per year, subject to employee numbers and other conditions.
