As we wind down towards December 31st, this is a reminder of some things that must be done before the end of the year in order to potentially save on your 2017 taxes:
- Spend down as much cash as you can on business expenses. Pay all outstanding vendor invoices and accelerate payment of January 2018 bills into December if you have sufficient cash on hand. You can also pay bills with your credit cards before 12/31 and still receive the deduction in 2017. Examples of expenses to pay that you may have overlooked:
- Office supplies, Marketing supplies, Advertising, Consultants and professional fees, IT services, and software.
- If you are on the cash basis, avoid collecting and making large customer deposits to your bank until early January if possible.
- Large equipment, hardware, and furniture purchases may qualify for a full write off if purchased before 12/31. Please contact us before purchasing to see if it qualifies for this treatment.
- Pay bonuses to employees that you feel are worthy. Once again, they must be paid on or before 12/31.
- Make a charitable donation
- Set up a Tax-favored Retirement Plan. If your business doesn’t already have a retirement plan, now might be the time to take the plunge.
Have a wonderful Holiday Season!
Tips provided by:
Stephen J Minosky CPA