IRS Error That Could Mean Money In Your Pocket | Palma Financial

Recently, Susy finally put a down payment on a building for her business with the tax savings. She used our tax-saving strategies to save money for several years. 

Don’t Assume You Are Taking Too Many Deductions

If your business deductions exceed your business income, you have a tax loss for the year. Tax law calls this a “net operating loss” or NOL.

You can carry your NOL forward, and it will offset your taxable income in any one future year.

What does this all mean? You should never stop documenting your deductions, and you should always claim all your rightful deductions. We have spoken with far too many business owners, especially new owners, who don’t claim all their deductions when those deductions would produce a tax loss.

To learn about this and other powerful tax-saving strategies, book your free tax assessment here.