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.
Do You Owe Money To The IRS?
The vast majority of Americans get a tax refund from the IRS each spring, but what do you do if you are one of those who have received a tax bill? What do you do if you owe money to the IRS and can’t pay? The IRS encourages you to pay the full amount of…
How Some Big Companies Are Maximizing Their Tax Benefit
How Some Big Companies Are Maximizing Their Tax Benefit There’s no question that the IRS is always looking for ways to get every penny they can from the nation’s taxpayers, whether they be individuals or businesses. On the other hand, many are also doing whatever they can to pay as little as possible, some, even…
Federal Government Still Facing Huge Deficit
Federal Government Still Facing Huge Deficit Does it seem like no matter how much money the federal government collects in tax revenue, they will still never have enough? For a lot of people the, answer is a resounding “yes.” The country’s Monthly Treasury Statement lends even more credence to that belief. What does the Treasury…
The IRS is Not a Bully – You can poke a bully in the nose.
The IRS is Not a Bully You can poke a bully in the nose. This is the third installment of “The IRS is Not a Bully” series, identifying taxpayer concerns and the difficult position in which Congress puts the IRS. Namely, applying ever increasing pressure to operate in ways its founders never intended, until it’s…