As a small business owner, tax planning should be a key part of your overall financial strategy. By taking advantage of tax breaks and deductions, you can minimize your tax liability and keep more money in your pocket. Here are nine strategies you should consider:

1. Review your tax liability for the current year
   Take a look at your tax situation for the current year and estimate how much tax you will owe. This will help you determine if you need to make any changes to your withholdings or estimated tax payments.
   
   
2. Consider a tax status change
   Your entity type not only impacts how you are protected under the law but it also affects how you are taxed. If you’ve outgrown your current business structure, or if you previously set up a structure that wasn’t the best fit for your business, you can elect to change your structure. Each entity type has its own benefits and drawbacks, so it is important to make sure you have a full picture before committing to your decision.
   
   
3. Amortization of Research and Experimental R&E expenditures
   Due to law changes, companies are no longer allowed to fully deduct their R&E expenses. Instead, these expenses are amortized over a period, based on where their services are provided. Classification of expenses as R&E should be renewed.
   
   
4. Review expired provisions
   Some of the tax relief provisions in 2021 the American Rescue Plan Act (ARPA) were carried over into 2022 by the Build Back Better Act. Principal among them are ARPA’s increases and expansion of the child tax credit, including its monthly advance payments, which have now ended as of the December 2021 payment. The Build Back Better Act was signed into law this past March 11th and included a renewal of that provision for 2022. Beyond those expiring provisions, a number of pre-ARPA "extender" items lapsed at the end of 2021, such as the treatment of premiums for certain qualified mortgage insurance as qualified residence interest and multiple energy and fuel credits.
   
   
5. Review the new limit on state and local tax deductions
   For individual taxpayers, one of the biggest potential changes being lobbied is the possible restoration of the deduction for state and local taxes (SALT). If this proposal becomes law, it could have a major impact on your tax bill. As such, it's important to think about how you would adjust your tax planning if the SALT deduction is restored or remains limited. Additionally, there are a number of other proposed changes to the tax code that could impact individuals, so it's important to stay up-to-date on the latest developments and plan accordingly.
   
   
6. Consider the Qualified Business Income (QBI) Deduction
   The qualified business income (QBI) deduction, which provides pass-through business owners a deduction worth up to 20% of their share of the business's qualified income. However, this deduction is subject to a number of rules and limitations. For example, owners of specified service trades or businesses (SSTBs) are not eligible for the deduction if their income is too high. SSTBs generally include any service-based business, such as a law firm or medical practice, where the business depends on its employees' or owners' reputation or skill. If a business is eligible for a QBI deduction, owners should carefully weigh salary vs. flow through income.
   
   
7. Budget for larger charitable donations
   Finally, if you're thinking of making a charitable donation, recently you may not have benefited as much from the deduction for your donation as you have in the past. Since the TCJA nearly doubled the standard deduction started effective 2018 and capped the SALT deduction, fewer people itemize their deductions on their tax return. As a result, the tax benefits of charitable donations have been limited to those who itemize their deductions. If the SALT cap is increased or eliminated, the deduction for charitable contributions could be more beneficial. If you are considering more significant contributions, gifting appreciated stuck to qualified charities offers great benefits. You will get a tax deduction for the fair market value and not be taxed on the unrealized gain. 
   
   
8. Remember, meals and entertainment is still 100% deductible
   For 2021 and 2022 only, businesses can generally deduct the full cost of business-related food and beverages purchased from a restaurant. (The limit is usually 50% of the cost.)
   
   
9. Review your accounting methods and records
   It’s a great time to look at the books, and make a plan to adjust anything that should be changed while also planning for the future. Many times, unexpected changes come up that can impact your business and individual taxes that you may not have even considered. For example, will you have any major life changes, such as getting married or having a baby? Buying a house? Leasing a business vehicle? Hiring more employees? Relocating your business? Spending more than usual on talent acquisition? Investing or accepting cryptocurrency? These changes can have a significant impact on your tax liability.
   
   

No matter what changes are ultimately enacted into law, the key to successful tax planning is staying informed and being proactive. By taking the time to understand the potential implications of proposed changes and making strategic decisions now, you can help ensure a smooth tax season for yourself and your business in 2022.