Ok, tax time around. LLC S-corp. My wife has her W2 and I do have mine. The profit is $100k. My tax accountant says I have to pay our tax bracket on this profit. In our case 30%. So $30k in taxes.
I get that I have to pay taxes but what is the best way to deal with this? I can’t predict the year end profit so I don’t want to pay quarterly.
How do you deal with this?
In that boat myself this year. Had to buy a vehicle to depreciate and most likely another service truck, will be paying our land lease a year in advance, paying my supply house about 50k in advance, and getting employee items like shirts/sweat shirts all to decrease profit. I like the ERC money we got, but the taxes we are going to have to pay on it, along with what we did, will be a lot. Have thought about doing a 100k disbursement into buying another business and have been looking at businesses to buy. Just haven’t found one yet recession proof or that we like.
I hear you but prepayment only helps for one year and puts you in the same spot next year or you forecast a bad next year. But I think next year will be even better than this year for us.