In the blink of an eye, we’re in the last quarter of 2023. Don’t blink again or you’ll miss the three months remaining in 2023 to make decisions that can impact how much you’ll pay in taxes come April. Here are a few questions to consider and possible tax deductions and credits that may help you reach your goals.

What goals did you set at the start of 2023 and how close are you to reaching them? Are there tax moves that can help you cross the finish line?

Did you have a goal to increase the number of customers you serve?

Whether you want to build awareness of the value your business delivers or offer special deals and incentives at year-end, marketing is key, and related costs are deductible. Expenses can include digital or traditional marketing, website work, professional conference attendance, business cards, marketing professionals and services, and more.

Are you trying to upgrade operations for the future?

Under Internal Revenue Code Section 179, if you buy or lease (with qualified financing) appreciable business equipment, you can deduct the full purchase price (or lease amount) from your gross income. Equipment can include office machinery, furniture, vehicles, computers, and more. The item must be new to your business, used for business purposes, and put in service the year that you take the deduction. The most you can deduct under Section 179 for 2023 is $1,160,000. There’s also an 80% first-year bonus depreciation for 2023, so you can reduce your tax liability even more.

Are you looking to operate more effectively and efficiently? Do you have or do you need any project management software, cloud storage, accounting software, or other software subscriptions?

Depending on a number of variables, you may be able to amortize the cost over three years or expense the cost under Section 179 and 168k provisions. (On a side note: Whether you’re implementing for the first time or changing software providers, it can take several weeks to get things up and running. Now is the perfect time to get started if you are looking for a January 1 go-live date. Plus, transitioning January 1 makes your accounting a lot easier.)

Are you struggling to attract or keep talent?

Bonuses and pay are 100% deductible. As for healthcare, if you pay at least 50% of the cost of coverage (a.k.a. premiums) for employees, you can deduct the cost. If you are self-employed and buy health insurance for yourself and your family, 100% of the cost is deductible. Also, If eligible, you can claim a tax credit of up to $5,000 for three years for the costs to start and administer a SEP, Simple IRA, or other qualified plan. Finally, if you plan an employee celebration, it’s 100% deductible. Plus you can claim up to $25 per employee for a gift.

Are you looking to reduce your carbon footprint and increase sustainability?

Receive a tax credit for 30% of the cost of switching to solar power. For energy efficiency improvements (i.e., install interior lighting, a new building envelope, or an HVAC or hot water system that reduce energy and power costs by at least 50%), receive a tax credit up to $5/square foot. When it comes to commercial clean vehicles, the credit can be up to $40,000 under IRC 45W.

That’s just a sampling of the questions you should be asking now. There are a lot more: Should you take a class to learn something new to help your business? Should you start that research and development project? Is it time to evaluate insurance and bank costs? Should you consider a new business structure? How can you reduce your tax liability? Is it time to update your home office? The list goes on…

If you’re interested in discussing year-end tax planning with an RBT CPAs professional, send an email to Marketing@rbtcpas.com or give us a call.

RBT CPAs is proud to say all our work is prepared in the U.S.A. – we never offshore. As a result, you get peace of mind that your operation’s financial and confidential information is handled by full-time, local staff who have met our high standards for quality, ethics, and professionalism.

NOTE! Tax laws and codes are very complex. While we’ve tried to ensure the accuracy of all the information presented herein, the actual tax laws and codes as presented on IRS.gov govern. What’s more, this article provides highlights about tax deductions and credits and should not be considered advice. Your best bet to ensure accuracy and completeness is to talk directly to a CPA.