Try These Tax Ideas for Your Business Before the Year Ends
Are you a business owner? Then chances are you’re already busy getting ready for your taxes. Personal taxes can be a pain for many people, but business taxes can be even more complicated. This is a very important time of year for just about every business because making the right moves now can help save you a bundle on your taxes in a few short weeks or months when you file your return.
So what can you do right now to effectively prepare for the end of the year? There are actually many different strategies you can use. Instead of paying a big chunk of your income to self-employment tax you can choose to be taxed as an S-Corporation. You can even make it retroactive to January 1, 2015. You just need to fill out and file the paperwork and make sure you take some money out for payroll for yourself.
Another move you can make if you own a business is to put your kids on your company payroll. Provided your children are actually doing the services that they are being paid for you can earn a nice tax break. If you pay your kids through a single member LLC or through a sole-proprietorship and your child is younger than 18 then your business doesn’t have to withdraw payroll or FICA taxes. Your children can also use their $6300 standard deduction against the income you pay them.
You can also start a 401k plan before the year is over or you can turn your 401k or traditional IRA into a Roth IRA. Another option is to spread your income out and push some of it into the next year, which can reduce your tax liability. Likewise, you can increase your expenses in the current year. Lastly, consider purchasing an SUV or large truck for your business, which can be a huge depreciation deduction.
There are many other year-end tax strategies that business owners should consider. You can speak with the experts at GROCO for more tax-savings advice. Just call us at 1-877-CPA-2006 or click here.
5 Rules of Building Successful Connections
5 Rules of Building Successful Connections Author: Will Corrente Updated: 6/10/2013 For me, connecting with people and connecting with entrepreneurs is one of the most enjoyable aspects of business and entrepreneurship. As a “Connection Optimizer”, I love brainstorming, making introductions, and pointing out potential synergies between friends, colleagues and fellow entrepreneurs. Like all social…
How To Become Employed With 9.8% Unemployment
How To Become Employed With 9.8% Unemployment 9.8% unemployment is the national average. For many states, it is even higher than 9.8%. I live in California and the number has hit double digits. This is true for many other states as well. Regardless of the rate, anyone actively in a job search knows these are…
Salaries of American Cities To Be Considered Wealthy
What are the salaries required within most American cities to be considered wealthy? We spend a lot of time on this website discussing the nation’s wealthiest individuals. Of course, most people in the United States know who the nation’s top earners are. Names like Warren Buffet, Bill Gates, Paul Allen, and Mark Zuckerberg are very…
The Top 10 Inventions in 2016
The Top 10 Inventions in 2016 Wireless Headphones $159 Wireless headphones have been around for years, but Apple’s new Airpods offer some unique features that make them stand out. You can listen to music, but they also come with microphones so you can control your phone with your voice and they can even detect when…