5 Tax-Saving Tips for Year’s End

Save yourself some headaches by starting now.

If you find yourself scrambling at the end of the year to find tax-saving opportunities, here are five tips you can use right now.

Start Early  // As a business owner, you’ll save yourself future headaches if you communicate with your CPA now to understand what you’ll need to do before year-end. Plus, the closer you get to year-end, the less time you have to put a plan in place to control your income tax liability.

Assess Your Needs for Capital Improvements // Congress has enacted several provisions in recent years that incentivize capital improvements by advancing otherwise allowable deductions. If this is a big income year for you, take advantage of those provisions
if you have capital improvement needs.

Take Advantage of Accounting Method Options // Depending upon the method of accounting that you use for federal income tax purposes, you may be able to shift income and expenses between years by prepaying some of your expenses, or waiting to receive some of your income. If that is the case, start now to slow down or speed up those income or deduction items to manage your overall net income level for the year.

Consider Credits // There are a number of available credit programs that can substantially decrease your overall tax burden. Are you doing research activities as part of your business? There is a credit for that. Are you employing individuals who receive government assistance? There is a credit for that. Are you reporting tips received by your employees? There is a credit for that. Be mindful of the credits that are available and start tracking them.

Understand the Reporting Requirements for ACA // That way, you can organize the necessary data now before the Jan. 31, 2016, deadline for the Affordable Care Act. Also, if you own a business with 50 to 99 employees, be prepared to offer health insurance to eligible employees or pay the mandated penalties.