As the halfway point of the year passes, July is the perfect time for business owners to assess their financial health and make strategic adjustments. A mid-year tax check-up can help you avoid surprises come tax season and identify opportunities for savings.
Start by reviewing your income and expenses to ensure your bookkeeping is up-to-date. Accurate records allow your CPA to project your tax liability and suggest strategies like adjusting estimated payments or maximizing deductions.
Consider accelerating purchases or investments that may qualify for deductions. Also, review retirement contributions, potential tax credits, and any changes to payroll that may impact tax filings. For many small businesses, this is also a good time to re-evaluate entity structure or check eligibility for the Qualified Business Income (QBI) deduction.
A mid-year check-in with your CPA can keep your business on track, improve cash flow planning, and reduce year-end stress.
Take advantage of Section 179 and bonus depreciation.
Conduct a cost segregation study to accelerate depreciation.
Track passive vs. active income carefully for tax treatment.
Harvest real estate losses to offset gains.
Real estate pros should also consider timing transactions to reduce tax impact and confirm if they qualify as Real Estate Professionals (REP) under the IRS guidelines.
Your CPA can help evaluate your portfolio and optimize your strategy before December 31.