5 Tax Strategies to Save You Thousands

Why Smart Business Owners Choose Tax Planning Over Tax Software

When it comes to business taxes, being “penny wise and pound foolish” can cost far more than you think. Many high-income business owners and entrepreneurs rely on DIY tax software like TurboTax or chain firms like H&R Block and Jackson Hewitt, hoping to cut costs. Unfortunately, what they save in upfront fees often pales in comparison to the thousands they lose in missed deductions, overpaid taxes, and IRS audit risks.

At Lakeline Tax Services, we help business owners turn their tax strategy into a tool for growth and protection. Our experienced team—led by IRS-authorized Enrolled Agents—has helped clients save over $50,000 annually with customized tax planning and entity structuring.

🔍 The Cost of Missed Opportunities: Real Client Stories

One business owner in Austin who previously used TurboTax for several years came to Lakeline Tax for a review. Our team uncovered over $28,000 in missed depreciation, improperly classified contractor payments, and unclaimed retirement contributions. We not only filed amendments to recover past overpayments but built a strategy that saved them an additional $22,000 the following year.

A Yelp reviewer stated:

“Lakshmi and her team were incredible. I had used TurboTax for years and thought I was doing fine. Lakeline Tax found deductions my software never even mentioned. They saved me over $18,000.” – Kathy M., Austin TX

Saving on taxes isn’t about working harder—it’s about working smarter. Don’t let a DIY approach or volume-driven firm shortchange your business. At Lakeline Tax, we believe that strategic tax planning is an investment—not a cost.

1. Maximize Section 179 and Bonus Depreciation

Section 179 allows businesses to immediately expense qualifying equipment and software purchases. Bonus depreciation further allows businesses to deduct 100% of the cost of eligible assets in the year they’re placed in service.

💡 Best For: Businesses investing in vehicles, machinery, or technology upgrades
✅ Savings Tip: Combine both to accelerate deductions and reduce your taxable income substantially [1].

2. Switch to an S-Corp to Reduce Self-Employment Tax

Many LLCs or sole proprietors unknowingly overpay thousands in self-employment taxes. By switching to an S-Corporation, you can pay yourself a “reasonable salary” and take the remainder as distributions—potentially saving over 15.3% on that portion.

👔 Client Case: One client reduced their tax bill by $14,500 in their first year after converting to an S-Corp with our guidance.

3. Set Up Retirement Contributions (Solo 401(k), SEP IRA)

Tax-deferred retirement plans allow business owners to reduce current taxable income while investing in the future. Contributions to a Solo 401(k) or SEP IRA are deductible and can be substantial—up to $66,000/year depending on income and structure [3].

🏆 Why It Matters: One of our clients used this strategy to defer over $40,000 in income, reducing their tax bracket significantly.

4. Deduct Home Office & Business Vehicle Expenses

Many business owners underclaim or completely miss deductions for home office use and business vehicle mileage. Done correctly, these deductions can cut thousands off your taxable income.

📌 Pro Tip: Ensure meticulous records and a clear business use percentage. Lakeline Tax helps you document and defend these deductions safely.

5. Implement Income-Splitting with Family or Spouse

Hiring your spouse or children in the business (legitimately) allows you to split income, reduce your overall tax liability, and potentially qualify them for retirement benefits—all within the IRS rules [5].

👨‍👩‍👧 Client Story: A family-run service company saved over $8,000/year by hiring their teenage children part-time and setting up Roth IRAs for them.

🤝 Why Choose Lakeline Tax Over Big Firms or DIY Tools?

DIY Software: Good for Simplicity, Bad for Strategy

TurboTax and similar software offer check-the-box solutions. But they cannot think strategically, catch entity-level issues, or advise you on future tax impacts. One Google reviewer noted:

“I saved more with Lakeline Tax in one year than I had cumulatively over 5 years using software. The difference is night and day.”

Big Box Firms: Volume Over Value

Chain firms like Jackson Hewitt or H&R Block often employ seasonal staff and juniors. There’s little continuity, no year-round tax planning, and high turnover. Your business deserves better.

📞 Take Action: Don’t Leave Money on the Table

At Lakeline Tax, we build custom tax strategies that protect your business, grow your wealth, and minimize your risk. You’ll work with IRS-authorized Enrolled Agents who specialize in helping business owners and high-net-worth clients keep more of what they earn.

👉 Book your FREE Tax Strategy Session today at www.lakelinetax.com
✅ Let us uncover what your software or past preparer missed
✅ Save thousands in taxes with a personalized approach
✅ Gain peace of mind, accuracy, and proactive planning

What Our Clients Say – Proven Results

“I owed over $50,000 in back taxes, and the IRS was threatening to seize my assets. Lakeline Tax negotiated an Offer in Compromise, and I settled for just $8,500! I can finally breathe again.” – Anthony, Business Owner

“Lakshmi and her team are absolute lifesavers! I was facing an IRS audit, and they handled everything—I owed nothing in the end.” – Sarah, Entrepreneur

“Lakeline Tax helped me set up a payment plan that fit my budget, stopping IRS collections and saving me thousands.” – Raj, High-Income Professional

🏁 Final Thought

🔗 Book a Free Consultation Today and start saving what you deserve.

Lakeline Tax provides tax preparation services for everyone including Individual Tax Preparation, Business Tax Preparation, Self-Employed Tax Preparation, Partnership & Corporate Taxes, Bookkeeping, and Tax Planning, serving Austin, Cedar Park, Leander, Liberty Hill, and surrounding cities, along with all 50 states. We utilize QuickBooks and are certified QuickBooks ProAdvisors. Get more done with us.