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You Can Never Start Tax Planning Too Early |
By:
Margot Brandlin |
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You Can Never Start Tax Planning Too Early
Margot Brandlin
It seems almost cruel to bring up the topic of taxes this far in advance of year-end, but now is the time of year when smart business owners are thinking ahead and making adjustments that will minimize the number of dollars that go into Uncle Sam's pocket on April 15.
Yes, taxes are complicated. Everyone knows that, but unfortunately, they still have to be done. It can help make this arduous task simpler, though, if you have someone who can give you the advice you need.
Here are some questions to ask yourself and some important facts to consider.
Who's sitting down with you on a regular basis to determine the tax impact of your key decisions including major purchases and sizing your personal paycheck?
You can deduct more money than ever before for equipment purchases. You can also take tax deductions on expenditures that your company would usually need to write off over the next several years, and get an immediate tax deduction. Depending on what tax bracket you fall into, your tax break could be anywhere from $15,000-$39,000.
Do you have someone advising you on a good strategy so that you tax-optimize your year-end income and expenses?
The golden rule of end-of-year tax planning is "increase expenses and delay income." That can be as easy as paying your January mortgage early or prepaying for subscriptions to keep the tax money in your pocket for an additional year. But if you've had a bad year, and expect next year to be better, you may want to take the opposite approach. We can help you make a smart choice.
Do you have someone advising you on ways to save taxes you might not know about?
You may be missing out on frequently missed deductions. For example, have you considered setting up a Dependent Care Assistance Program? It's a simple and inexpensive way to put more money in your employees' pockets. You can reimburse employees up to $5000 in child care expenses tax free. They don't pay income taxes on the reimbursement, and you don't pay payroll taxes.
Your CPA still plays a vital role in preparing and filing your actual returns. But wouldn't it be reassuring to know that there was somebody who really understood your business and was working side-by-side with you throughout the year to develop a big picture tax strategy?
Take advantage of every legitimate tax deduction. It simply smart to do this, but you have to know what's best for your company in the long-term, and not just focus on what's going to reduce your taxes short term.
About The Author: Margot Brandlin lives and works in http://www.owlbookkeepingandcfo.com/services/minneapolis-bookkeeping.html Minneapolis, Bookkeeping with Owl Bookkeeping and CFO. http://www.owlbookkeepingandcfo.com/services/minneapolis-bookkeeping.html Bookkeeping in Minneapolis with Owl Bookkeeping and CFO allows her to provide the highest caliber of service to her clients.
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Article Source: http://www.statssheet.com/articles/article71416.html |
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