End of the Year Tax Planning

Small Business Tax Planning Tips:

I know....I know....that’s the last thing you want to think about this time of year....

but time is quickly running out on your window of opportunity to save some serious money on your small business taxes.

So...quickly...like in the next few days...

take an afternoon off from the daily grind of your business and all your holiday shopping and consider doing one or all of these tax planning tips before next year comes crashing in.

1. Catch up your accounting: If you are like me, this is a busy time of the year and I tend to put off entering all of my accounting data; however, this is a critical time to look at your numbers and decide what you need to do to minimize the taxes for your small business.

2. Call your accountant: Set up and appointment to sit down and talk to them about your year-end tax planning. They will know what is going to change and not change in the small business tax world and what you should and shouldn’t do right now. If you don’t have one it may be a good time to choose an accountant.
   
   
3. Accelerate expenses and defer income: Pay all the expenses you can and put off all the income you can till January...if that is what will work best for your business. This year because of the self-employment reduction, I will personally not be deferring any of my income. I will be paying all the expenses I can though :-)

4. Go Shopping: Stock up on some office supplies. Buy some new office equipment....if you are going to need it in the coming year. Remember though...any equipment will have to be in your office and “in use” by the end of the year. Save those receipts!
   
   

   
   
   

5. Section 179 is your friend: Under section 179 in the U.S. Tax Code, small business owners are allowed to deduct the full purchase price of tangible equipment such as computers, office furniture, etc. Leased equipment, used equipment, and software will qualify too.

   The amount you can deduct with the section 179 has doubled since last year to $500,000 and the total amount of equipment that can be purchased has increased to two million dollars.

6. Make charitable contributions: This is always a good thing but be aware that for most small business (unless you are a regular (C) corporation), the owner will have to itemize on their personal taxes to take advantage of this deduction.

Go to Basic Accounting from Tax Planning