If you or your business operates on a cash basis and a calendar year, one effective strategy to lower your taxable income for 2024 is to hold off on billing customers, clients, or patients until after December 31. Typically, payments aren't made until an invoice is issued, so postponing billing can defer income into the following year.
Example: Jake, a dentist, normally bills his patients and insurance companies weekly. In December 2024, he chooses to delay sending any invoices until early January. By shifting his billing, Jake successfully moves his December income into 2025, reducing his taxable income for 2024.
This time-tested strategy has helped business owners defer taxes for years.
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