How Florida Small Businesses Can Maximize Tax Savings in 2024

Running a small business in Florida is a lifelong dream for many, but taxes are a potential problem at this time of year. Heavy tax debts and penalties can quickly derail all your hard work and planning.

Fortunately, numerous tax breaks for small businesses help reduce the burden. If you’re a small business owner, Florida tax-IRS attorney Ronald Cutler explains tax breaks you may qualify for on your 2024 return and how to be proactive in reducing liability next year.

Tax Breaks for Florida Small Business Owners in 2024

Florida is home to more than three million small businesses, according to figures from the U.S. Small Business Administration. However, for as many small businesses open each year, thousands more fail. Tax debts and heavy Internal Revenue Service penalties are a common contributing cause.

If you are a small business owner in Florida, be aware of tax deductions and credits that can help reduce your tax debt on your 2024 return. These include:

• Home office deduction, if a portion of your house is dedicated exclusively to your small business;
• Self-Employment Tax Deduction, covering the employer portion of Social Security and Medicare taxes for those who are self-employed;
• Business Income Deduction (QBI), allowing eligible Florida businesses to deduct up to a fifth of qualified income;
• Section 179 Deduction, allowing small businesses in Florida to deduct the cost of equipment and property purchases instead of depreciating them over time;
• Work Opportunity Tax Credit (WOTC), a federal credit for businesses that hire employees from certain target groups, such as veterans.

Florida has no state income tax, but small businesses may qualify for sales tax exemptions and industry-specific credits.

How Small Businesses Can Reduce Tax Liability in the Year Ahead

Even if you do not qualify on your 2024 return, being proactive and aware of tax credits and deductions can help lower your future tax burden. Steps to take now to reduce liabilities on your 2025 taxes include:

• Choose a business structure with tax benefits: S-corps, LLCs, and sole proprietorships are all taxed differently. Choose a structure to optimize tax savings.
• Track your expenses: Keep detailed records of costs and losses that could entitle you to deductions next year.
• Consider tax-advantaged purchases: Investing in eligible equipment or business property before year-end may provide deductions under Section 179 of the U.S. Tax Code.
• Take advantage of retirement plans: Reduce your taxable income through contributions to SEP IRAs, 401(k)s, or other retirement accounts.
• Work with a tax professional: Work with an experienced Florida tax attorney to identify tax breaks and ensure compliance with IRS and Florida tax laws.

Consult Our Experienced Florida Tax-IRS Attorney Today

Tax debts can be devastating for small businesses. As a certified public accountant and a former FBI special agent investigating tax cases, Ronald Cutler has over 50 years of experience helping clients in these cases. He can advise you on how to take full advantage of deductions, minimize tax liabilities, and stay compliant with changing tax codes. To protect your small business, contact our office today and request a consultation.  

Sources:

advocacy.sba.gov/wp-content/uploads/2023/11/2023-Small-Business-Economic-Profile-FL.pdf

irs.gov/payments/penalties

irs.gov/newsroom/depreciation-expense-helps-business-owners-keep-more-money