Year End Tax Planning

 

You’ve got 2 months to do a little planning that could save you a lot of taxes. Here are a few tips. Certainly you should consult with your tax accountant or attorney about what is right for you.

 

If you have any big purchases planned, get them into this tax year. Big is a relative term so that might mean loading up on office supplies or buying a new building. Either way, start planning now and you could save a lot on your 2015 tax bill.

 

If you have a lot of bills to pay, pay them over the next two months to get the expenses into this tax year. The more legitimate expense you pay, the more you’ll save.

 

Have you thought about a new website? Do it now. Rates are great this time of year and the expense will help with your tax bite.

 

Training and education is usually a deductible expense. If you thought about having some training at your business and have money in the budget, this is an ideal time to do it unless yours is a Christmas business. Training not only improves productivity, but it also boosts morale.

 

If your business is incorporated, you can defer income until January. (Talk to your tax adviser)

 

Now is the time to add some money to your IRA, 401k or whatever sort retirement plan you have. (Ask your tax adviser)

 

It’s great to talk about paying bills and putting money away but what if income isn’t so great? Take these next 2 months to do some serious planning for next year. We tend to not allocate time to do the one thing that is guaranteed to help business: THINK.

 

Take a walk. Plan 1/2 hour of each work day to get outside and walk—take a little notebook with you. Do some thinking. Give yourself enough time—the first few minutes is about detaching from the stress of work. Once you decompress, you’ll feel new ideas and new energy flow to the top. Act on your ideas.

 

And if you’re feeling stressed about year end or the year ahead, feel free to call me. I’d be happy to give a word of encouragement.

 

Chris Reich, Business Development Adviser

TeachU