Invest in a SEP account each year. Donations also help. There's obviously a limit to both. RE investments are also a help.

Best advice - speak with a CPA who knows our business and knows it WELL!

I do believe this is a discussion to have with your tax accountant and/or financial advisor. I worry about the use of the word "creative." I'm more about legal ways to reduce my tax liability. 

There are a million answers to this question - and your CPA, financial advisor and Google are your friends.

I'd use 'search'' here in the rain if you find list of deductions for realtors. 

I also use CPA. 

Start Buying Rental Properties

Just keep reinvesting your money, and get a good tax person.

I don't have to worry with that, my accountant knows what of my expenses can be deducted.

Get a competent CPA who cares. CPA wearing an expensive suit and charging $300/hr does not guarantee quality advice.

that's why we have accountants.... mine has always made recommendations for me to follow or NOT...

That is a great question to ask your tax attorney or CPA.  Be careful of financial advisors.  Their fiduciary duty is to the firm they work for ... not their clients!  Shocking .. right?  It's true.  Find someone who truly puts their clients best interest FIRST above their own.

THis is a legitimate question for our accountant or tax adviser.

As you know, your age is a prime player in such decisions.

I wold suggest creating a non-profit. There LOTS of money in not-for-profit.

Mathew,

I am not an accountant or a financial advisor.  Get the right advice from the right professionals.  A

Retirement accounts help, but one of the best things I did last year involved prepaying as many 2017 invoices as possible in 2016, hoping still that tax reform will behefit us this year.

As others have mentioned, consult your CPA.  Deduct all legitimate business expenses, including some of the less obvious ones (e.g. mileage, car insurance, etc.)  Sounds like you're covered on SEP. 

Other things may depend on your situation and thinking about this year vs. next year and this is all the more reason to consult a CPA.  e.g. you could pay some January expenses in December if you want a short term savings (but of course next year, it will increase your profit), or if you have a financial loss (e.g. stocks/mutual funds), you can deduct that), or if you have a lot of money and have kids you can give them tax free gifts (this is usually an estate planning measure when people are older and have plenty of money and/or looking to reduce inheritance taxes down the road, but the inheritance part is less important nowadays as fed limit doesn't kick in until over $5 million...but in some states, there are state inheritance taxes at a much lower amt).  Those numbers looked way different 15 or 20 years ago...and may change again in a year or two.

Also, there's donations, health care expenses, etc. 

Everything can vary based on individual circumstances.  Some of these things make sense for different people and/or at different times of their life.  Hence a CPA is helpful here (and later in life an estate attorney)

Matthew, great job on getting that SEP-IRA started.  Even though the tax code says you can contribute 25% of your net business income it really comes out to about 19% when factoring in SE tax.  That is half the job with the contribution then you must monitor your investment account daily and have a plan for economic shifts.

We have been very happy with our SEP-IRA contributions and try to max out as much as we can.

I'll also mention something that hasn't been talked about and has been a great tax deduction for us.  If you are self-employed and don't have a group medical plan provided by your employer or spouse's employer, you can set up a HEALTH SAVINGS ACCOUNT (HSA).

Chances are your bank or credit union can set one up for you as many do provide these as a service to their banking clients.  For an individual for tax year 2017 the contribution limit is $3,400 and for a family it is $6,750.  As most have said check with a tax professional as you have to meet the qualifications AND you have to match up an ObamaDoesn'tCare health insurance plan that offers an HSA.  (good luck with that as they are disappearing)  Since our ObamaDoesn't Care Health Plan has a high deductible the HSA is wonderful because you can then use your HSA debit card to pay for the office visits, prescriptions, medical services that your plan does not pay for until you break your deductible.  It is not too late to set one up and you can do so before April 15, 2018 for a tax year 2017 HSA plan.  Check it out!

So as an example if a taxpayer had a net profit of $100,000 and maxed out his/her SEP/IRA with a contribution of $19,000 then the taxable income drops to $81,000.  Add on a family HSA and the taxable income drops to under $75,000 and that is before any of your itemized deductions or if the standard deduction kicks in!  

You can see why members of Congress are being pressured by the groups who are going to possibly lose their pet tax deductions and why it is so difficult to eliminate a tax deduction or loophole once it is granted.

These are two HUGE legal deductions that are helping us save money for our future and work well for our situation. 

As you have been warned by most people make sure you check with your CPA, tax advisor, attorney, doctor, priest, rabbi, imam, minister, fortune teller, soothsayer, TV Guide, etc . . . . . .     ^_~

Make less money. Pay less taxes.

Contact your CPA/Tax adviser....

As others have said, consult a CPA, financial advisor or a tax attorney.

Matthew Klinowski The best way that I know of is to keep track of every expense, every mile you drive, every piece of equipment you can depreciate and become familiar with the federal tax code so you can stay on top of this. Back up everything with detailed records and receipts.

Keep track of expenses, spend more as the year ends on advertising for next year, buy business products and write off losses

Go to the IRS website for many options.

Your CPA will provide the advice you need for your personal situation.

"creative" deductions?  That sounds a bit risky.  But a good CPA can help you identify all the legal ones and maybe give you some ideas you haven't thought of.

Google Tax accountants in your area.

Hire a good accountant and follow their advice! 

C.P.A.

Well, be careful not to go to low in case you need to get a loan from the bank and they ask to see your income.

Defined benefit, 105 plan. Talk to your CPA.

I invest in rental property and maximize my SEP each year. I take every deduction I can that is legal.

Talk with an accountant/cpa and a wealth advisor (two totally different things).

While I also believe this is a question best asked of a qualified accountant and/or tax adviser, I'm here to check out the answers(of which many are) quite creative.  Good luck.  

      Document everything.   

     Put any and every allowable cost related to your transactions on the CD or Closing Document, including referral fees and co-brokes.  Why take it as income, and then fill out complex tax forms trying to deduct it later?

    Make every meal a "business lunch".  Make every road trip about auto mileage for real estate.  Your dry cleaning bill can be a deduction, and so much more.

    Buy rental properties and investment properties.  Know all the legal shelters and loopholes including Section 1031. 

     Caveat:  too many deductions may trigger an IRS Audit.  Be sure you show enough net taxable income to justify your lifestyle.

maximize business deductions.

With the tax law change there will be fewer.

Good suggestions here.

I deposit into my retirement account every year.  My CPA will let me know the amount, but usually put more in.

Good question, I would check with your CPA

A Solo 401K may let you deduct more income for retirement savings than a SEP account. If you need to make a substantial business purchase do it before year end so you can deduct it this year.

Stop working and get on the government teet. Guaranteed success.

There are many ways you can lower your taxes. Take every deduction you can, and talk to your accountant about details. SEPS are  great.

Ask an accountant, but remember - excessive creativity may lead to converting your attire to orange hues...

Ask a cpa