Summer isn’t just about sunshine and slower schedules—it’s also the perfect time to optimize your tax strategy. Whether you’re a business owner or a Realtor juggling open houses, these months offer unique ways to reduce your taxable income and improve your cash flow. Here’s how to make the most of the summer season to keep more money in your pocket.
Deduct Seasonal Travel That Doubles as Business Planning a vacation? If you’re attending a conference, meeting a client, or scouting locations during your trip, you may be able to deduct part of your travel expenses. According to the IRS, business travel that’s “ordinary and necessary” is tax-deductible. Document everything: itineraries, receipts, and business purposes. Realtors, for example, visiting another city to explore market trends can claim airfare, hotel, and 50% of meal costs.
Leverage the Home Office Deduction. If you haven’t claimed your home office deduction yet, summer is a great time to get organized. This deduction applies if you use part of your home exclusively for business. Whether you’re a realtor doing virtual showings or a business owner managing teams remotely, calculate the square footage used and apply it against eligible home expenses like rent, utilities, and insurance.
Hire Family for Summer Help. If your children are on break, you can legally hire them to help with business tasks. This can include filing paperwork, managing emails, or assisting with marketing. As long as the pay is reasonable and the work is real, you can deduct their wages as a business expense. For sole proprietors, wages paid to children under 18 are not subject to Social Security or Medicare taxes.
Use Section 179 for Big Purchases. Need a new laptop, camera, or office equipment? Under Section 179, qualifying purchases can be deducted in the year they’re bought instead of being depreciated over time. Summer is ideal for upgrading your tools before fall’s busy season kicks in. Realtors can especially benefit from better photography gear or new CRM software.
Track Summer Networking Events. Barbecues, community events, and real estate mixers are more than social outings—they’re tax-deductible opportunities. If the event has a clear business purpose and you discuss work, you can write off 50% of your meal and entertainment expenses. Keep notes on who you met and what was discussed to back up your deduction.
Review Your Quarterly Taxes. Summer marks the halfway point in the fiscal year. It’s the perfect time to review your estimated quarterly tax payments. Overpaying? You could free up some cash flow. Underpaying? Adjust now to avoid penalties. Work with a tax professional or use an online calculator to project your year-end liability and refine your payment plan.
Take Advantage of Summer Downtime. With fewer meetings and slower inboxes, use this season to review last year’s return. Look for missed deductions, plan charitable contributions, and organize receipts. If you overpaid last year, those insights can help you adjust your tax strategy going forward. This applies especially to self-employed professionals whose income fluctuates.
Key Takeaway. Summer isn’t just for relaxation—it’s a golden opportunity to optimize your tax situation. From deducting work-related travel to hiring your kids, a few smart moves now can translate into big savings come tax season. (How to Save on Taxes This Summer: Tips for Business Owners and Realtors)
Have questions about how much you’re overpaying on your taxes and how to stop? Give us a call today at (972)-446-1040 or Click Here To Schedule Your Free Second Opinion!