makeuseof.co.nr: Start Planning your taxes...NOW!

Taxes. That dreaded word. We don’t like to think about it, but it’s something we have to think about all the time, actually, if we own our own businesses. Taxes don’t just happen on April 15. In fact, you need to plan for them throughout the year; think ahead so that you can make adjustments and minimize your tax payments come April 15.

Of course, taxes can get complicated. Hey, even Albert Einstein claimed, “The hardest thing to understand in the world is the income tax.” And you’ve got more important things to do with your time. Make sure there’s someone in your corner providing 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 for equipment purchases than you have been able to before. You can also take expenditures that your company would otherwise need to write off over several years, so that your tax deduction is immediate. Depending on what tax bracket you fall into, you could get a tax break of between $15,000 and $39,000.

Who’s helping you develop a tax-savvy strategy for 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.

Who’s educating you about tax saving opportunities you may not even be aware of?

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 can help you take advantage of every tax opportunity when he or she prepares and files your actual returns. However, isn’t it nice to know that somebody who knows your business is working with you throughout the year to develop a long-term tax strategy?

Taking legitimate deductions is simply smart business, but you have to make decisions based on what is good for the long-term health of your company, not just on what reduces your taxes.

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