Angelica Roxas provides comprehensive financial planning, tax strategies, and retirement planning services. She specializes in serving Real Estate Investors, Business Owners, Pre-retirees, retirees, and those seeking to safeguard their retirement savings.

Tax savings are crucial because they can significantly reduce your tax liabilities and increase your profits. By taking advantage of tax deductions, credits, and other strategies, you can legally lower your tax bills and keep more of your hard-earned money.

Common deductions include business expenses (office supplies, advertising, travel), depreciation of property and equipment, home office expenses, car expenses, employee expenses (salaries, bonuses, benefits), and retirement plan contributions such as solo 401(k), SEP-IRAs, and SIMPLE-IRAs.

The home office deduction allows you to deduct a portion of your home-related expenses—such as rent, mortgage interest, property taxes, utilities, and insurance—if you use a portion of your home exclusively for business purposes. You calculate it by dividing your home office square footage by the total square footage of your home, then applying that percentage to your home expenses.

You can choose between the standard mileage rate (65.5 cents per business mile for 2023) or actual expenses (gas, repairs, insurance, depreciation). Keep a detailed logbook with the date, trip purpose, start and end locations, and mileage. The IRS requires that commuting to and from work does not count as business use.

Cost Segregation is a powerful tax strategy that involves a detailed analysis of your rental property to identify and allocate costs to different asset categories, such as land improvements, personal property, and building components. This can accelerate depreciation deductions and significantly reduce your tax liabilities.

Frequently overlooked deductions include the research and development credit (up to 20% on qualifying expenses), the domestic production activities deduction (up to 9% of net income), disability insurance premiums, mileage deductions, education expenses related to your business, and business gifts (up to $17,000 per individual in 2023).

Keep all receipts including credit card receipts, invoices, and canceled checks. Use a separate business bank account, maintain a mileage log for all business travel, keep records of all assets with purchase price and improvements, and consider using a cloud-based system for secure and easy access to your records.

The Section 179 deduction allows you to deduct the full cost of a vehicle or equipment in the year of purchase, subject to certain limits. This is particularly useful if you purchase an expensive vehicle or equipment for your business, as it lets you accelerate the deduction rather than depreciating it over several years.

Yes, bundling expenses means combining multiple expenses to meet the minimum deductible threshold. For instance, if the threshold is $500, you can bundle expenses together to reach that amount. This strategy enables you to claim deductions that may not have been individually deductible.

Tax deductions reduce your taxable income, while tax credits reduce your tax liability dollar-for-dollar. Common credits for business owners include the earned income credit, the child tax credit, and the research and development credit. Tax credits are generally more valuable because they directly lower the amount of tax you owe.

Starting from 2023, deductions for business meals have returned to their pre-2021 status. The majority of business meals can be deducted up to 50%, while most entertainment expenses are no longer eligible for deduction. Always keep detailed records of the business purpose for each meal expense.

Dedicate a specific area exclusively for business, avoid personal use of that space, use a separate entrance if possible, and never exaggerate your deduction. The IRS scrutinizes this deduction closely, so consulting with a tax professional is essential to ensure eligibility and accurate claiming.

Leasing a car can offer several tax benefits, such as higher deductions for business use and lower upfront costs. However, buying may be better for long-term savings. Consider your usage patterns and consult with a tax professional to determine the best option for your situation.

Tax planning should be a year-round activity, not just something you do at tax time. Strategically timing your purchases before the end of the financial year can maximize deductions. For instance, buying new equipment near year-end enables immediate depreciation claims. Regular consultation with a tax professional ensures you stay current with changing tax laws.

You can schedule a free 30-minute discovery call to discuss your tax situation and financial goals. During this call, we'll evaluate your current strategy and identify opportunities for tax savings tailored to your specific needs as a real estate investor or business owner.