What Can Small Businesses Do to Plan for Tax Season?

There are only a few days remaining in 2015. The bad news is your time for tax saving for this year has almost expired. The good news is you still do have a few days to make some moves that can help you save on taxes for your small business. Not every move is right for every company, but many of these options are commonly employed by smaller business, especially when they are looking for a few more deductions at the end of the year. Let’s take a closer look.

Do you need a new truck? Although not every vehicle will qualify, getting a tax break is a great excuse to buy a new heavy truck, van or SUV, as if you needed an extra reason to buy a new truck. These types of vehicles are great for almost any business for day-to-day operations, but they can also give you a great tax deduction thanks to the Section 179 instant depreciation deduction privilege.

Another smart move to make before the year ends is to defer taxable income. If your business is eligible you can defer some of your income from 2015 to 2016, which could lower your tax liability for the current tax year. You can even purchase items in 2015 with a credit card and get the deduction counted towards 2015 even though you won’t pay the bill until 2016.

In addition, you can make payments for bills and other expenses with checks that won’t be deposited until next year, and still get the deduction for 2015. As long as you mail the checks in 2015 it counts towards this year’s taxes. You can also claim 50 percent first-year bonus depreciation for any new software and equipment your company purchases, which is another big tax break for small businesses.

It’s true that the sun is about to set on 2015 for good, but you can still check with GROCO to see how we can help you save money on your small business taxes before 2016 kicks off. Click here or give us a call at 1-877-CPA-2006.

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