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If you're a business owner—or thinking about becoming one—understanding tax strategy is non-negotiable. Unfortunately, many entrepreneurs leave tens of thousands of dollars on the table simply because they don’t know what’s legally available to them.
In this post, I’ll walk you through some of the most powerful tax strategies every entrepreneur should know, based on what I’ve learned over years of workshops, reading, and collaborating with top CPAs.
⚠️ Disclaimer: I’m not a CPA or tax attorney. This is for educational purposes only. Always consult with a licensed professional before implementing tax strategies.
🧾 Section 179 and Bonus Depreciation: Game-Changers for Small Businesses
Let’s start with Section 179 and bonus depreciation—two of the most underutilized tax deductions available to business owners.
Section 179 allows you to immediately deduct the full purchase price of qualifying equipment or software purchased during the tax year. That includes things like:
- Vehicles used for business
- Business equipment
- Technology and software
- Office furniture
There’s even a calculator on section179.org to estimate your potential deduction.
Bonus depreciation goes hand in hand with Section 179, especially for businesses purchasing large assets. Under recent tax laws, you can depreciate 100% of qualified assets in the year they’re placed in service—dramatically lowering your taxable income.
🏗️ Real Estate & Cost Segregation: Accelerate Your Deductions
If you own real estate through your business or as an investor, cost segregation can unlock huge tax savings. This strategy allows you to separate out certain parts of your building (like fixtures, electrical systems, etc.) and depreciate them faster than the standard 27.5 or 39 years.
In one example I mentioned in the video, we accelerated depreciation on a property and created a $175,000 tax loss, which allowed me to offset capital gains from another sale—without needing a 1031 exchange.
Talk to a qualified CPA about cost segregation if you own or plan to purchase investment property.
👨💼 Why Every W2 Earner Should Also Own a Small Business
Here’s a truth bomb: W2 employees pay the most in taxes. But owning a business—even as a side hustle—opens the door to a world of tax deductions.
You could potentially write off:
- Home office expenses
- Mileage
- Cell phone and internet
- Professional development
- Travel tied to your business
- Meals with clients or prospects
And here’s the kicker: if legislation like the proposed $50,000 business startup deduction goes through (up from the current $5,000), it could unleash a surge in new entrepreneurs who realize they can use a business to offset their W2 income.
🏢 Franchising as a Strategic Wealth Vehicle
Not everyone wants to start a business from scratch—and that’s where franchising comes in. Franchises offer:
- Proven systems and branding
- Marketing support
- Easier scaling
- Built-in credibility
If you’re a busy professional looking for additional cash flow, tax write-offs, and a backup plan, a franchise may be the perfect entry into entrepreneurship.
Visit bookwithbeau.com to chat more about whether franchising could be a fit for your goals.
🎓 Learn and Leverage: Invest in Financial Education
I always say: You don’t have to be a tax expert—you just have to ask the right questions to the right people. Here’s what I recommend:
- Start watching credible tax YouTubers and podcasts.
- Fact-check everything with your CPA.
- Attend workshops and summits that focus on entrepreneurship and tax strategies.
We host free business ownership events where we bring in CPAs and attorneys to help you legally minimize taxes and structure your business the right way.
You can find upcoming sessions at beaueckstein.com/events.
🔑 Final Thoughts: Tax Planning Is Wealth Planning
Taxes are the biggest expense most people never think about. But for entrepreneurs, every dollar you save in taxes is a dollar you can reinvest into your business, real estate, or future.
Whether you’re a full-time founder or a side-hustling employee, tax strategy is one of the fastest ways to accelerate your financial goals.
Let’s talk more about your situation at bookwithbeau.com. I’d love to help you get started on the path to smarter tax planning and long-term wealth.