Don't Put Off Tax Planning
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Even though taxes might be far away this time of year, it's not too early to start planning. If you're smart, you're thinking about the adjustments you going to make so that you'll pay fewer taxes 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 things to ask yourself as you go throughout the year, so that taxes will be much simpler come tax time.
Do you have someone sitting down with you regularly to determine what the tax impact of your key decisions will be, including any major purchases you're going to make and the size of your paycheck?
The amount of money you can deduct for equipment purchases is higher than it has ever been. You can take expenditures that your company would otherwise need to capitalize-write off over several years-and get an immediate tax deduction. Depending on your tax bracket, you could see a tax break of $15,000 to $39,000.
Do you have someone helping you construct a smart tax strategy so that your year-end income and expenses are optimized?
In general, the mantra for year-end tax planning is, "Delay income and increase expenses." This can be as simple as paying your January mortgage early or prepaying for magazine subscriptions early as well. This helps you keep the tax money out of Uncle Sam's hands for an extra year. However, if you've had a bad year and expect that the next year is going to be better, the opposite approach is probably better.
Who's educating you about tax saving opportunities you may not even be aware of?
Be careful not to miss out on deductions. For example, you can set up something called a "Dependent Care Assistance Program." This is a simple way to put more money in your employees' pockets. You can reimburse employees from $5,000 in child care expenses, free of taxes. You don't pay payroll taxes on that amount, and they don't pay taxes on what they are reimbursed.
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?
Taking every legitimate deduction available to you is simply smart. However, you have to make sure your decisions are based on the long-term benefit your company, not just on short-term tax savings.
Article Source: Articlelogy.com
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