Pharmacy Resolution: Use Smarter Tax Strategies

Make 2016 the year that you stop giving the government more money than you have to! When facing financial difficulty, we often think about ways to increase our income, but what about saving more of the money we have already worked so hard to earn? There are countless ways to save money on taxes that you don’t even know exist. That’s why “Use Smarter Tax Strategies” is number three on our list of Top New Year’s Resolutions for Pharmacy Owners in 2016.

Most tax accountants and CPAs use fifteen to twenty strategies when preparing a client’s tax return, but that is not even a fraction of what the tax code allows. When properly documented, more than 400 legal deductions are available to you! It is almost guaranteed that you are paying more taxes than you are required to. If you took advantage of all the deductions available, you could be putting more cash back into your business, a rainy day fund or toward your next family vacation.

The majority of a tax professional’s work occurs in the two to three month period culminating on Tax Day. They may have to prepare several hundred returns in a short period of time, so they often “staff up” with temporary employees and work 80-90 hours each week just to stay afloat. Under those circumstances, they can’t possibly provide you with the level of research and analysis you need to maximize your savings.

Additionally, tax professionals have been deputized by the IRS, which severely penalizes them for submitting returns with questionable or undocumented deductions. This forces them to play it safe, because most clients are unable to provide proper documentation for many types of deductions. Therefore, it is your responsibility to become familiar with the tax strategies that will save you thousands of dollars.

Did you know that you can charge your business to hold meetings in your home up to 14 times each year? This creates a deduction on the corporate or business side while creating income that you do not pay taxes on.

Did you know that you can save thousands of dollars and generate tax-free income by hiring your children? According to the law, you can pay them up to $6,300 each year for things like managing your social media or answering the phones.

Wondering why tax-free dollars are important? If you have a $50,000 expense and you’re in the top tax bracket, it actually costs you $83,000 to spend $50,000 with after-tax money. If you use before-tax money, the same $50,000 expense can be paid for with just $50,000. That’s a savings of $33,000!  

At the 2015 PDS Conference, Ernest Nesmith of Tax Savings Professionals wowed the audience with winning tax strategies that could save pharmacy business owners anywhere from three to six figures in one year. Click here to watch his Tax Savings Webinar and learn more about how you can generate tax-free income, uncover hidden deductions and keep more of your hard-earned money.

What other game-changing strategies are you missing? Don’t miss the opportunity to hear from more experts like Ernest and pick up techniques for saving money, earning more cash and improving your business. Join us at the 2016 PDS Conference! This year’s lineup of speakers is exceptional.

PDS 2016: Learn More & Register Now!