A small business owner discovered significant tax savings through strategic financial planning with Prosperent Co. Initially unaware of the full extent of deductible expenses related to her home office, she sought our expertise to streamline her financial operations and maximize tax benefits.

The first step was setting up her personal QuickBooks Online (QBO), which allowed us to meticulously track and document all eligible home office expenses. A crucial component of this strategy was implementing an accountable reimbursement plan within her corporation. This plan ensured that reimbursements for home office usage were fully compliant with IRS regulations, thereby allowing her to claim legitimate deductions without any risk of disqualification.

Through our comprehensive review, we identified a total of $38,539 in expenses eligible for reimbursement related to her home office for one year alone. However, she had previously only deducted approximately $9,000 in the prior year, leaving significant savings unclaimed.

By amending her previous tax returns and capturing these overlooked expenses, she realized a tax savings of $22,982. This proactive approach not only secured immediate financial benefits but also ensured that future deductions were fully optimized.

At Prosperent Co, we believe in empowering our clients to achieve true prosperity—both personally and financially. For small business owners, understanding the nuances of tax deductions, especially related to home office expenses, can make a substantial difference in their financial outcomes.

Our commitment is to provide personalized financial solutions that align with your business goals and lifestyle. Whether it’s setting up accountable reimbursement plans or optimizing deductions, we’re here to simplify your financial journey and maximize your savings.

If you're a small business owner looking to unlock hidden tax benefits or streamline your financial operations, contact us today. Let Prosperent Co be your partner in achieving financial clarity and prosperity.