Harvest Retroactive Rewards: Seize 2023’s Tax Opportunities for Maximum Savings in 2024

As we navigate the complexities of tax season, I wanted to bring your attention to some incredible retroactive taxes deduction opportunities for the year 2023 that could significantly benefit your business.

By taking action now, you can unlock substantial savings:

1. Deductible IRA Contribution: Maximize your deduction potential by making a deductible IRA contribution of up to $6,500 per person (or $7,500 if over 49) by April 15, 2024, for the 2023 tax year. Ensure you meet the necessary tests to leverage this valuable deduction.

2. Health Savings Account (HSA) Deposit: For individuals with qualified health savings plans, seize the opportunity to make an HSA deposit of up to $3,850 for single coverage or $7,750 for family coverage by April 15, 2024. This allows you to deduct for the 2023 tax year.

3. SEP-IRA for the Self-Employed: If you’re self-employed, consider establishing and funding a SEP-IRA for the tax year 2023 by the extended due date of your tax return. You can deposit the lesser of $66,000 or 25% of your income, providing a powerful deduction avenue.

4. State Deductions for 529 Plans: Some states permit deductions through April 15, 2024, for 2023 contributions to 529 plans. While there’s no federal tax deduction, this state-level benefit can contribute to your overall tax savings strategy.

5. Home Office Expenses for Small Business Owners: Small business owners may deduct home office expenses from the tax year 2023 if they have a dedicated space in their home used regularly and exclusively for business. This can be achieved through either an actual expense allocation or the IRS safe harbor amount.

6. 2023 Elections with 2024 Returns: Don’t miss out on the opportunity to make crucial elections with the filing of your return in 2024, including:

• 10T Home Equity Debt election
• Sec. 266 real estate tax election
• Installment sale treatment on real property
• Small business $2,500 de minimis expense provision

To discuss how these strategies can be tailored to your specific situation and ensure maximum taxes savings, please don’t hesitate to reach out to us. Our team is ready to assist you in navigating these opportunities.

Act now to optimize your retroactive tax benefits!