Welcome to the Goodman CPA blog! We are excited to share valuable insights and strategies designed to help you maximize your tax savings and achieve your financial goals. At Goodman CPA, our mission is to financially empower business owners like you to fulfill your God-given purpose by putting you in the best tax position possible.

Our Core Tax Strategies

In this blog, we introduce our seven core tax strategies that have helped our clients save between $10,000 and $100,000+ annually. Let’s dive into each strategy and explore how you can start implementing them today to enhance your tax planning.

1. Home Office Deduction

If you use a part of your home exclusively for business purposes, you can maximize your tax savings by claiming a portion of your home expenses as business deductions. This can include mortgage interest, utilities, and repairs.

Tip: Measure the exact space used for your home office and keep detailed records of all related expenses to ensure accurate deductions.

2. Hiring Family Members

Employing your children or other family members can offer substantial tax benefits. This approach not only provides them with valuable work experience but also helps reduce your taxable income.

Tip: Ensure the work is legitimate and their compensation is reasonable. Document their roles and the work they perform to substantiate the deduction.

3. Employee Achievement Awards and Bonuses

Carefully structuring employee rewards can boost morale and provide tax advantages. Learn how to optimize these awards to minimize your tax liability while recognizing your team’s hard work.

Tip: Create a structured plan for awarding bonuses and other incentives. Ensure they align with tax regulations to maximize the benefits.

4. Reimbursement for Out-of-Pocket Expenses via an Accountable Plan

An accountable plan allows you to reimburse employees for business expenses without subjecting these payments to payroll taxes. This strategy can improve your cash flow and reduce your tax burden.

Tip: Set up a formal accountable plan policy and ensure all reimbursements meet IRS requirements to qualify for tax-free status.

5. The 1031 Exchange and Sale of Real Estate

Defer capital gains taxes on the sale of investment property by reinvesting the proceeds into similar property. This powerful strategy can significantly increase your buying power and grow your real estate portfolio.

Tip: Work with a tax advisor to ensure you meet all the requirements for a 1031 exchange, including identifying and closing on replacement properties within the designated timeframes.

6. Home Gain Exclusion

You can exclude up to $250,000 ($500,000 for married couples) of capital gains from the sale of your primary residence. This strategy offers significant tax savings and flexibility without the need to reinvest the proceeds.

Tip: To qualify, you must have owned and lived in the home as your primary residence for at least two of the five years before the sale.

7. The Augusta Strategy

Generate tax-free income by renting your residence to your business for up to 14 days per year. This innovative approach allows you to receive rental payments tax-free while deducting the expenses as business costs.

Tip: Ensure the rental agreement is documented and that the rental period does not exceed 14 days to maintain tax-free status.

Stay Tuned for Our In-Depth Series

In the coming weeks, we will publish a series of detailed blog posts, each focusing on one of these seven strategies. Our goal is to provide you with comprehensive information and practical tips to help you implement these strategies effectively in your business.

Schedule a Strategy Session

We are here to support you every step of the way. If you have any questions or would like to discuss how these strategies can benefit your business, we invite you to schedule a strategy session with our team.

[Schedule Your Strategy Session Today]

At Goodman CPA, we prioritize people—clients, team members, and the community—above all else. We are dedicated to helping you build a strong financial foundation for long-term growth and success.

Thank you for being a valued part of the Goodman CPA community. We look forward to empowering you with the knowledge and tools to achieve your financial goals.

Stay tuned for more tips and strategies in our next blog post. Here’s to your financial success!