If you have a profitable business, it likely makes sense to work with an accountant for year-end tax planning. Your accountant can provide an estimate of the bottom-line numbers for your current year’s taxes before year-end to avoid surprises, plan accordingly, and discuss tax saving opportunities.
Some large end-of-year purchases and deductions that business owners often consider to help minimize their tax liabilities include:
–Vehicle Purchases – SUVs and trucks with a gross vehicle weight over 6,000 pounds may be deducted in full in the year of purchase, to the extent the vehicles are used for business based on mileage.
–Retirement Plan Contributions – view my post on retirement plans.
–Computer and other Equipment Purchases
–Furniture Purchases for a home office or office outside of your home.
Your accountant can model out these purchases and deductions in your business to help determine the tax savings to be realized from these types of investments.
With the exception of retirement plan contributions, these types of purchases and investments only make sense when you’re considering these investments in your business as the tax savings from these investments does not outweigh the cash required to make these purchases.
Contact me to discuss this topic in further detail
Please note: the information on this website is intended to provide general advice to start the discussion with your tax professional. The information on this website may not apply to your specific situation. Only an experienced professional with the details of your specific situation can advise you on making the best decision. Contact me or your tax professional to discuss the information on this site to make an informed decision.