A recent article, 10 Year-End Tax Planning Actions by Barbara Weltman says that it’s almost closing time for the calendar year 2016 and it’s the perfect time for planning to reduce your taxes due for 2016.
Here are some tips for year-end tax planning for your business.
Meet with your tax professional
Schedule a meeting in meeting space Orlando with your tax professional to review your business cash position and expenditures through the year so you can decide what steps to make before the year ends. For instance, your CPA can advise you to buy some supplies needed for next year to maximize your deductions for this year.
Award year-end bonuses
Consider to share your good year with your team in executive suites Orlando to convey your gratitude for their loyalty. Factor in the cost of payroll taxes on the bonuses in determining how much to give.
Have a retirement plan
You can sign the proposal for a profit-sharing plan or other qualified retirement plan by the end of the year if you don’t yet have one, so you can make deductible contributions from your tax returns for 2016. Find rules about retirement plans from the IRS.
Make donations to charitable institutions
The amount of deductions varies with what is being donated (e.g., cash, inventory, appreciated property). For instance, C corporations’ deductions are up to 10% of taxable income.
Purchase equipment and machinery
If you need to purchase new machinery, furniture and equipment (e.g. computer, tables and chairs) to replace the old ones, then you’ll probably be able to write off the cost even if you finance the purchase in whole or in part. Find rules about deductible equipment purchases from the IRS.
Now is the time to make a year-end review. Know how your business ran over the past twelve months and review what needs to be improved. Your team may need better workspace solutions for a more productive year- 2017. YourOffice is a leader in providing the most prestigious executive office space and shared office space for any size business. Convenient, hassle free, and move in ready- our offices, meeting rooms, and conference rooms are designed to meet your business’ every need.
How do you plan for your business year-end tax? Let’s see your comments below. We’d also be glad to see you on Twitter and Facebook.