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.


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