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Don’t Miss These 5 End of Year Tax Deductions

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As the end of the year approaches, it’s not just presents and eggnog on your mind. Instead, you might be thinking about tax deductions. As a small business owner, it’s important to eke out deductions and write-offs wherever you can. After all, that’s what helps you to pay less in taxes!

So as 2019 comes to a close, let’s revisit 5 important tax deductions you can take as a small business owner.

1) Max Out Solo 401k Contributions

Did you know that with a Solo 401k plan, you can contribute up to $56,000 per year? If you’re age 50 or older, you can contribute up to $62,000 per year. And if your spouse works in your business with you, you can each make those maximum contributions! That means with a Solo 401k plan, you could shelter up to $124,000 per year! Legally!

The Solo 401k is a special plan made just for small business owners. The IRS wants to reward you for saving in your working years, so you won’t be as dependent on government programs in your golden years. The Solo 401k plan is a way to do just that. Not only are you saving money for your future self, but those contributions are tax-deductible.

For any entrepreneur who’s had a great year in earnings, it’s usually devastating how much you pay in taxes. With the Solo 401k, the opposite is true! Therefore, the more you earn, the more you can contribute, and the less you pay in taxes!

Oh, and the IRS is fully supportive of the Solo 401k. They even have a page on their website dedicated to this special plan.

2) Give to Charity

Donating to charity is a valuable way to give to causes you believe in, and get a tax benefit. Tithing to your religious organization, or giving a cash donation to your favorite cause can both help your tax liability.  Additionally, you can donate items you are no longer using, such as clothing, housewares, and office equipment. Remember to get a receipt for any donations, as that will be needed for your records and the tax deduction. If you are itemizing deductions, you’ll notate those deductions on IRS Schedule A of your tax return.

3) Consider an HSA

As a small business owner, finding adequate health insurance that doesn’t break the bank can be tough. Opening a Health Savings Account (HSA) can help you save money should you need to pay any big health or medical expenses in the future. Plus, your contributions to an HSA are tax-deductible!

There are certain qualifications to have an HSA, so make sure you’re checking with your CPA or counsel before opening an account. Additionally, a HSA can be self-directed and even invested into alternative assets like real estate! If you’re interested in taking control of your financial future not only with retirement accounts, but an HSA as well, reach out to us for more information.

4) Cut Investment Losses

So not all your investments performed as you hoped. As in investing (and life), you win some and you lose some. Fortunately, your investment losses can translate into tax deductions you can take at the end of the year! Capital losses (when investments lose money) can help to offset capital gains (when investments make money).

This can translate into paying less in capital gains taxes. If you don’t have any capital gains this year, you can carry capital losses forward indefinitely. Make sure you keep good track of your investment records, in case you need to carry forward those losses for tax deductions in the future.

5) End of Year Business Tax Deductions

Have you been holding on making any purchases for your businesses? Maybe you need to replace the copy machine, or invest in a new software for the company. The end of the year may be the time to do it. If you can buy the things your business needs now before December 31st, those deductions can be taken when you report your taxes next year.


There’s no need to overpay in taxes as a business owner. By utilizing some of the end of year tax deductions above, you can really help to save yourself a lot of money. The most important thing to do is take control of your finances, and your financial future.

If you have questions about how to pay less in taxes, contact our Solo 401k and Retirement Account Experts. Our team is standing by, with extended hours through the end of the year. Get your money into your control, where it belongs. It’s your money. Invest in what you want.


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