Clients are usually scrambling this time of year, making last minute moves to lower their tax burden. If your business is one of the lucky ones with a growing tax problem, first of all, be happy! I talk to clients all the time that complain about the level of taxes they have to pay. It's a necessary evil, so to speak. I tell these clients, would you rather worry about having cash or would you rather worry about having too much cash and having a large tax bill? I then always offer up my standard tax planning tool. I will gladly invoice you for the amount of your tax issue and pay the tax myself. Unfortunately for me, this tax tip is never utilized. I don't know why?!
One of the best tax tip is to fully utilize retirement for yourself. Having employees will give more of a burden to your business but this only aides in your employee's moral and overall compensation. There are many plans out there that can really push what the owners can put for themselves. Too many options to explain here.
Do you best to pay down all your current bills to get the cash expense write off. Some clients in a good year will pre pay a lot of expenses. You can even pay for things with credit and get a write off. Do NOT spend money just to get a write off. Another advice here is to make decisions that make sense, not based on tax benefits!
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If you need equipment, buy it. You could even finance it and take advantage of depreciation rules.
That's just a few quick ideas...enjoy your holidays!
