Updated 2020 Tax Planning Checklist for Small Business Owners

• Begin by forecasting 2020 taxes based on 2019 results – easy with today’s professional tax software
• Maximize tax-free pandemic relief payments
• Use a Health Reimbursement Arrangement (HRA) for tax-free payments
• Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) for insurance assistance
• Add a Health Savings Account (HSA) for long term health security
• Adapt an employer-sponsored Education Assistance plan
• Use Accountable Reimbursement Plans to lower wage taxes
• Use Special Partnership Allocations for maximum tax impact
• Consider timing of trust fund disbursements
• Use split dollar cash value life insurance for deferred compensation
• Consider other unfunded deferred compensation plan
• Segregate non-professional income for possible 20% exclusion
• Consider employee vs contractor allocation
• Use employer-provided IRAs
• Use profit sharing plan
• Use pension plan for maximum deductions in late career
• Employ family members
• Use family limited partnerships
• Invest in tax-free Qualified Small Business stock
• Invest in limited partnership with large up-front deduction
• Gifting of income-producing assets to family members
• Donating appreciated stocks to charity
• Use a Family Trust
• Use a Charitable Lead Trust
• Use a Charitable Remainder Trust
• Sale and lease back arrangements of business assets
• Match passive losses with passive income

OR, just skip the analysis of this entire checklist and tackle your tax savings plans now the easy way by scheduling a free, no obligation chat with professional compensation planner Tony Novak, CPA, MBA, MT online at www.tonynovak.com.