Easing the Pain of Business Losses

For income tax purposes, a business loss generally occurs when a business’s deductions for the year exceed its revenue. Any business, whether new or established, can face losses. Fortunately, the net operating loss (NOL) deduction can turn the pain of a loss this year into tax savings for next year and, perhaps, beyond.

Tax inequities can exist between businesses with stable income and those with fluctuating income. The NOL deduction helps address those inequities. It essentially lets the latter average out their income and losses over the years and pay tax accordingly.

When it comes to business losses, the rules are complex, especially the interaction between NOLs and other potential tax breaks. Our unique, free online app will show you deductions and benefits 98% of business owners are unaware of, then if you want, we'll go get them and then submit the paperwork to you or your CPA to file with no upfront fee!!

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What is the Research & Development Tax Credit?

 

The Research & Development Tax Credit (R&D Tax Credit) is an often misunderstood and highly underutilized federal tax credit. It can significantly impact businesses, but owners don't tend to claim the R&D credit because they either are unaware of it or think it doesn't apply to them.  

 

The R&D Tax credit was enacted in 1981 to stimulate innovation and encourage investment in development in the United States.  The PATH Act of 2015 officially made the R&D Tax Credit a permanent addition to the U.S. tax code.
 
The R&D Tax Credit is a credit on your income tax return, not a deduction. That means, dollar-for-dollar, you can reduce your tax liability and deduct eligible R&D expenses.  The credit can be used for all open tax years, meaning the last three years, plus the current year.  Additionally, you can carry forward any unused credit for up to 20 years, making the credit beneficial year after year, aiding in improving cash flow and earning power for years to come.

How Much Do I Qualify For?

Tracking this data manually.

When a prospect replies fast, books a call, or keeps the conversation going… it’s rarely just luck.

It’s because you reached out at the right moment, when the problem you solve was already on their mind.

So.. How do you know when lead is actually open to talking to you?

There are a few common clues that show buying intent is rising:

• Company’s hiring? New teams are likely rethinking tools and processes.
• New funding? Budgets are open, and growth pressure is on.
• Past customer in a new role? Familiar trust, new budget = time to reconnect.
• Visited your website? They’re exploring solutions, and you’re on their radar.
• Engaged with a relevant LinkedIn topic? They’re open to discussion.

 

A-player

 

1. Audit your team.
   Who’s driving results? Who’s draining you?

2. Write out the cost of a recent bad hire.
   Time. Energy. Money. Be honest.

3. Make a list of roles you’re underpaying, and what it’s costing you.
   It might shock you.

4. Commit to finding one A-player before the end of the year.
   Even if it costs more. Especially if it does.

Let your team carry the weight with you.

1. Hire for who they are, not just what they do.
   You can train skills. You can’t train hunger, ownership, or self-awareness.

2. Overpaying the right person is still cheaper than replacing the wrong one.
   Ask me how I know.

3. Leadership starts with letting go.
   You can’t lead if you’re micromanaging. Let your team carry the weight with you.

4. It’s your job to build a team you trust.
   Not one you tolerate.

Dedicated to K.B.K. The Best!! #9

Hiring cheap is the fastest way to go broke.

Everyone talks about saving money. Nobody talks about what it costs to fix cheap work. Or chase people down. Or carry dead weight on your payroll while you do all the heavy lifting.

You don’t save money when you hire cheap. You just delay the expense and multiply the headache.

If you want to grow a real business, you need real players. Not project babysitters.

Not energy vampires. Not warm bodies filling a seat.

It costs more up front. But it saves your business. Saves your sanity. Saves your future.

Hiring your children?!?

Most business owners have no idea this is even possible.

And the ones who do think it's "shady" or "risky."

It's neither.

The IRS explicitly allows it. And it can save you tens of thousands.

Here's how it works.

You hire your kids to do legitimate work in your business.

Marketing, social media, filing, data entry, website updates — anything age-appropriate and documented.

You can pay them up to $14,600 per year.

That income is completely tax-free to them (under the standard deduction).

And it's a full business deduction for you.

If you're in the 24% tax bracket and have two kids?

That's $7,008 in tax savings every single year.

Over 10 years? $70,080.

And your kids? 

They're building work experience, learning about business, and earning money for college or their future.

But here's the catch...

It has to be done correctly.

Proper documentation.
Reasonable wages.
Legitimate work.

Your CPA should be walking you through this setup.

But most never mention it.

They either don't know about it or don't want to deal with the paperwork.

So you keep overpaying while your kids sit on the sidelines.

Last month, I talked to a business owner with three teenagers.

He'd been paying full tax rate on $43,800 in income that could've been shifted to his kids tax-free.

For five years.

That's $52,536 in unnecessary taxes.

"I had no idea this was allowed," he said.

Most don't.

If you're a business owner with kids, this strategy alone could cut your tax bill significantly.

But you need to implement it before December 31st for it to count for the year.