In this episode, Brett shares some common tax breaks and strategies hair salon owners can leverage to offset their overall tax liability.
As a small business owner, whether you’re saving, investing, spending, or even receiving wealth, there are few moves you can make without considering how taxes might influence the outcome. So, it’s no wonder hair salon owners get nervous when there’s so much talk of higher taxes in 2023, but very little certainty on what may come of it and who it might affect most.
Common Tax Breaks for Hair Salon Owners
So, how do we plan when we cannot know? Now, the particulars may evolve in time, but it seems there are always a handful of tax breaks to encourage you to save toward your major life goals, such as retirement, healthcare, education, charitable giving, and the eventual sale of your salon business.
However, it remains up to us to make the best use of these tax tools of the trade. So, in today’s episode, we’re going to look at some of the most familiar tax breaks available. Then, in the next episode, I’ll cover how as a hair salon owner, you can incorporate these tax breaks into your financial plan.
[02:24] The tax breaks associated with saving for retirement.
[04:03] How Health Savings Accounts (HSAs) can help hair salon owners save for future healthcare costs on a tax-advantaged basis.
[05:32] How to get a tax break while saving for educational expenses.
[06:02] The benefits of giving to charity via a donor-advised fund (DAF).
[07:21] Why hair salon owners may need to revisit their estate planning documents in the coming years.
Looking for more tips on how to grow, scale, and ultimately sell your hair salon business? Check out our other Unchained From the Chair podcast episodes.