Hi,
Most business owners start their taxes in February or March, when everyone else does. That’s when the stress, the rush, and the mistakes happen. Without proper planning, many businesses leave thousands of dollars on the table in missed deductions. A late partnership or S-corp return can cost over $240 per owner, per month in penalties. For a two-owner business filing a year late, that’s more than $5,800 before any tax is counted.
Starting early is worth it if any of these apply to your business:
- Your revenue or profit grew this year, and so will your tax bill
- You’ve filed late, extended last-minute, or paid a penalty before
- Your books aren’t fully up to date yet
Here’s where our business clients typically save:
- The 20% QBI deduction: about $7,200 – partnership and S-corp owners can often deduct up to 20% of their business income. On $150,000 of profit, that’s a $30,000 deduction worth about $7,200
- Paying yourself back tax-free: $3,000+ – with an accountable plan, your business can reimburse you for your home office, phone, and mileage. It’s a deduction for the business and tax-free to you. $10,000 a year in reimbursements can save $3,000 or more
- Hiring your kids: about $5,150 per child – wages paid to your children for real work are deductible to your business, and largely tax-free to them up to $16,100 each
- Renting your home for business meetings: $5,000+ – your business can rent your home for up to 14 days a year, tax-free to you. At $1,500 a day, that’s a $21,000 deduction
- Already bought equipment or a vehicle? About $12,000 – you can often deduct the full cost this year. A $50,000 purchase can save about $12,000 in taxes
- Deductions most owners miss: thousands more – travel, meals, health insurance, and vehicle use are often under-claimed when the return is rushed
Most of these only work if they’re set up before December 31.
Here’s how it works:
- We use your year-to-date profit and loss and payroll reports to mock up your 2026 business return now
- You see your expected tax early, plus every way to lower it before the year closes
- Your return is ready well before the deadline (March 15, 2027 for S-corps and partnerships, April 15, 2027 for C-corps), or we file your extension early
The catch is that a rushed return is rarely the lowest-tax return, and late business returns mean late K-1s, which delay your personal return too. That’s why starting early gives you:
- Real tax savings, often worth thousands to tens of thousands of dollars
- Bookkeeping cleanup, so your books are accurate before filing season
- Estimated payment guidance, so you avoid IRS penalties
Reply to this email by Thursday, November 12, and we’ll get you queued up and start on your 2026 mock-up right away. Please include your year-to-date profit and loss and a note on any major purchases or sales this year, so we can get you real numbers fast.
Need anything else? We’re happy to set up a free 15-minute call with your senior accountant to go over the process and next steps. Just let us know in your reply.
Sincerely,
—
George Dimov, CPA
Licensed and Insured
(833) 829-1120 toll free
(212) 994-8081 Fax
www.dimovtax.com