Taxes aren’t just a line item—they’re a silent thief, siphoning off profits you’ve sweated to earn. If you’re a business owner, you’re likely overpaying Uncle Sam right now, and it’s time to stop. At Gentry & Stone, we’ve seen too many entrepreneurs leave cash on the table because they didn’t know the legal hacks that could slash their tax burden. This isn’t about shady loopholes or crossing lines—it’s about smart, above-board strategies for tax mitigation for business owners that keep more money in your pocket. We’re talking quick wins you can pull off this quarter and long-term plays that build wealth for years. Let’s dive into three big moves: deductions you’re missing, ownership tweaks that save big, and timing tricks that defer the pain—all while showing how our finance experts can make it painless.
Uncover Hidden Deductions You’re Leaving on the Table
Think you’ve got deductions dialed in? Think again. The IRS hands out tax breaks like candy, but most business owners only grab the obvious ones—office supplies, mileage, maybe a home office. There’s more out there, and tax mitigation for business owners starts with claiming every dime you’re owed. Here’s how to dig deeper and keep more.
- Augmented R&D Credits: You don’t need a lab coat to qualify for the Research & Development credit. Tweaking a product—like a new HVAC filter—or testing a marketing campaign can count. The IRS bumped this credit in 2024; small businesses can now offset up to $500,000 in payroll taxes. One client of ours, a roofing firm, saved $80,000 by claiming process improvements—check IRS.gov for the latest.
- Section 179 Supercharge: Buy equipment—a truck, a CNC machine, even software—and write off up to $1.16 million this year, per 2025 rules. Don’t wait—buy before December 31 to lock it in. Pair it with bonus depreciation (80% in 2025) for gear over the limit. A landscaping client slashed their taxable income by $200,000 this way last year.
- Home Office Hacks: If you’re running things from your dining table, claim it—square footage, utilities, even a chunk of your internet bill. The simplified method ($5 per square foot, max 300 sq ft) is easy, but itemizing can net more. Don’t sleep on this; it’s free money.
- Health Premiums for You: Self-employed? Deduct 100% of your health insurance premiums—yours, your spouse’s, your kids’. No cap, no catch. The National Federation of Independent Business says only 40% of owners claim this—don’t be the 60%.
- Hire Your Kids: Pay your children (under 18) for legit work—filing, social media, whatever. Up to $13,850 in 2025 is tax-free for them, and it’s a deduction for you. Keeps it in the family and cuts your bill. One retailer we advised saved $10,000 annually this way.
These aren’t guesses—they’re IRS-approved moves we’ve road-tested with clients. Start here, and you’re already ahead. But deductions are just the warm-up—let’s talk structure.
Restructure Ownership to Slash Taxes Long-Term
Your business setup—LLC, S-Corp, C-Corp—isn’t just paperwork; it’s a tax lever. Tax mitigation for business owners often hides in how you’re organized, and a tweak here can save you six figures over time. This isn’t about starting over—it’s about shifting gears to pay less. Here’s the playbook.
- S-Corp Switch: If you’re an LLC or sole proprietor pulling decent profits, flip to an S-Corp. Why? You pay yourself a “reasonable salary” (taxed normally), then take the rest as distributions—free of payroll taxes. A restaurant owner we worked with cut their tax bill by $25,000 a year this way. IRS watches this close, so our finance team keeps it legit.
- C-Corp Comeback: Big growth plans? A C-Corp’s 21% flat rate (since 2017’s Tax Cuts and Jobs Act) beats personal rates if you’re topping $400,000 in profit. Reinvest, not withdraw, and you’re golden. Tech startups love this—double taxation’s a myth if you’re smart.
- Pass-Through Power-Up: Stick with an LLC? Use the Qualified Business Income (QBI) deduction—20% off your profits, no questions asked (if under $182,100 single, $364,200 married in 2025). Service businesses like consultants get phased out at higher incomes, but stack it with other moves here.
- Trust It Up: Move ownership into a family trust. Keeps profits off your personal return, defers taxes, and shields assets. A manufacturing client dropped their effective rate from 35% to 22% with this—complex, but worth it. Pair with estate planning for a twofer.
- Location Play: Operate in multiple states? Set up a holding company in tax-friendly spots like Nevada or Wyoming—no state income tax. Route profits there legally. One e-commerce client saved $50,000 annually by rerouting sales through a Nevada LLC.
Restructuring isn’t a quick fix—it’s a power move for serious savings. Done right, it’s tax mitigation for business owners that compounds. Now, let’s play with timing.
Defer, Delay, and Keep Cash Today
Why pay taxes now when you can pay later—or never? Timing is the unsung hero of tax mitigation for business owners, letting you hang onto cash when it counts. These strategies push the burden down the road, legally, so you can grow now. Here’s how to pull it off.
- Defer Income Like a Pro: Got a big December invoice? Hold off sending it ‘til January—shifts the tax hit to next year. Works if you’re on cash-basis accounting (most small businesses are). A contractor we advised deferred $100,000, freeing up cash for a new rig.
- 401(k) Max-Out: Dump up to $23,000 (2025 limit) into a solo 401(k)—$30,500 if over 50. As the employer, add a 25% profit match (up to $69,000 total). All pre-tax, all growing tax-deferred. One client shaved $15,000 off their bill this way.
- Installment Sales: Selling a big asset—like a building or client list? Spread payments over years via an installment sale. Tax hits only as cash comes in. A retailer we helped sold a warehouse for $1 million, spreading $200,000 annual taxes over five years—huge breathing room.
- Loss Harvesting: Got a dud investment? Sell it, claim the loss, and offset gains. No gains? Carry it forward. The IRS lets you bank losses indefinitely—perfect for lean years. Saved a tech founder $30,000 when a side gig tanked.
- Cash Flow Float: Prepay expenses—rent, insurance, subscriptions—before year-end. Deduct now, pay later. Pair with delayed billing for a double whammy. A service firm we guided kept $40,000 in play this way last December.
Timing’s your friend—use it. These moves don’t just cut taxes; they free up capital to reinvest, hire, or just sleep better.
Why Gentry & Stone Is Your Tax-Saving Sidekick
Tax mitigation for business owners isn’t a DIY project—it’s a chess game, and you need a grandmaster. That’s us. At Gentry & Stone, we don’t just crunch numbers; we craft strategies that stick more cash in your jeans. Here’s why we’re your go-to:
- Custom Cuts: Your business, your tax plan. We tailor every move—deductions, structure, timing—to your goals. No one-size-fits-all here.
- Insider Edge: Our finance pros live this stuff—latest IRS rules, state quirks, all in play.
- Big Wins: Clients who’ve slashed taxes by 20%, 30%, even 40%—want proof? Reach out.
- Stress-Free: We handle the heavy lifting—filings, audits, planning—so you focus on running the show.
Stop overpaying Uncle Sam today. Your profits deserve better, and we’ve got the hacks to make it happen. Ready to slash your tax burden? Hit us up at gentryandstone.com/contact/—let’s talk savings.
