Got your year-end tax planning underway for December 31, 2015?
WE UNDERSTAND that year-end can be a drudge because it means making sure your business accounts are up to date and in order.
But don’t leave it until the last minute. No decision, or rushed decisions, can lead to the wrong outcome and cost you more in taxes.
Here are some tips that pay off at tax time:
- Make sure your accounting is up to date so that you have accurate numbers to use in tax planning.
- Pay expenses in advance. If your cash flow allows it, consider paying recurring expenses in advance. Using credit cards to pay for tax-deductible expenditures will earn you the deduction this year, even if you don’t pay for it until next year.
- Spend Up! But only if you need to. If you need to replace equipment or purchase new tools, vehicles or equipment soon, consider purchasing before December 31st to get the full tax benefit now.
- Write-off Bad Debts. To deduct a bad debt, the IRS requires you to write it off while it still exists, prior to December 31st. Review your accounts receivable with us to determine whether a deduction qualifies before the deadline.
- Check assets and inventory. Consider writing down or writing off obsolete stock.
- Pay your taxes on time and don’t over-claim. Unpaid taxes and fraudulent claims are serious business. With the IRS looking to recover billions owed by small business, it’s critical to submit accurate returns and pay on time.
- Use expertise, not guesswork! Get in early by making an appointment with Williams & Kunkel, CPAs, LLP to discuss how to make the most of your tax position to help you get ahead.