Are You Missing Out on Small Business Tax Deductions? - Mark Myers

Winning On Main Street - Small Business Podcast

English - June 16, 2022 10:00 - 26 minutes - 24 MB - ★★★★ - 15 ratings
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After graduating from the University of Florida, I started my career managing health clubs. I went to work for a small company at the time called Equinox. I joined Equinox when they had around 12 clubs and now there are over 100 clubs across the US, Canada, and the UK. My role was to help them open locations, which taught me how to be an owner-operator. While I wasn’t technically the owner-operator, each club was treated as its own entity when it came to profit and loss. After a decade of working 365 days a year in this industry, I realized I wanted to make a change. I landed on helping small business owners looking for ways to optimize their profits and that’s where Peak Profit Solutions was born.

We work with clients to help them maximize their tax savings without them having to change their CPA. The key to almost any savings strategy starts with proactive planning. We’ve found over 90% of small businesses overpay on their taxes. While there are great tax preparers and CPAs out there, most do not have the time to spend digging through the tax code to find all the deductions that may be available to a small business owner. That is where we come in and help business owners explore the deductions that might be available to them. We also work with high-earning W2 employees. While the options are a bit more limited for them than for a small business, there are still ways we can help.

There are 176 economic development zones across the United States and some zones have very specific activities. For example, in Illinois, there is an area where most major US airlines purchase their jet fuel because of the benefit that zone provides them. Flash over to Puerto Rico, Act 23 (which morphed into Act 60) states that if you base your business in Puerto Rico and it is approved, then the profit from that business is only subject to a 4% tax rate. Additionally, if you are a Puerto Rico citizen then any profit above 4% can be received as a tax-free dividend. The key is to ensure you have your business entity set up correctly so that you can benefit from these deductions.

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