New year marks last chance for tax plans

Most easily can identify the number of days remaining to Christmas, but how about the days left to the new year?

For most of us, the date is important because it is the last opportunity to do some tax planning for 2015 and 2016.

Year-end tax plans include postponing income when possible and accelerating deductions.
If employed, you possibly could postpone year-end bonuses and maximize deductible retirement contributions. Retirement plan distributions should be reviewed to ensure you have drawn the minimum required. The penalty for not doing so is rough.

Many of you already are planning significant salary increases in the next year, so my earlier advice can be reversed.

You might want to accelerate income and postpone electable deductions. Isn’t tax planning fun?
Nevertheless, most of us need to recognize the responsibility to plan within our tax circumstances.
Many of us have investments and within the year, as a result of managing those investments, we have gains and losses.

To the extent the losses realized exceed the gains, we should review our portfolio for possible appreciated items that make sense to sell at this time to offset the losses.

If at the final close the losses exceed the gains, the losses can be carried to the next year, so we should never just sell to offset a loss. Because long-term gains are taxed at a favorable rate, the opposite advice is true – selling good investments because they now show a loss is not advisable just to offset the gain.
Accelerating deductions also can provide relief. Charitable contributions, real estate taxes and mortgage interest all can be accelerated or prepaid within certain limitations. Many of these personal itemized deductions, however, also can be a trap.

Many of these deductions are added back in the calculation of the alternative minimum tax. So, accelerating the deduction possibly may be counter productive.

You also may find getting rid of income-producing assets as an appropriate option. An individual can give away $14,000 at current value per year, per recipient free of gift tax. A married couple can double the amount.

There are many rules pertaining to gift giving that must be followed. Giving publicly traded investments with a long-term capital gain directly to a charity also should be considered.
The benefit of this gift is that there will not be a tax on the gain, but a deduction for the full fair market value is allowed for tax purposes.

The Affordable Care Act requires a person either to have minimum health coverage or make a shared responsibility payment.

If you think you may be liable for a shared responsibility payment, you carefully should review the exemptions available.

Businesses also have questions and choices at year’s end. Aggressively pursue collections or defer? Prepay expenses or not? Will a piece of aging equipment need to be replaced soon? Buy it and place it in service before year end?

It is uncertain whether Congress and President Barack Obama will pass any depreciation-acceleration bills for the 2015 tax year, but they may do so.

Numerous other business-oriented deductions or credits that expired in 2014 also likely will be extended for 2015.

As I have often ended this column, stay tuned. You also should consult your tax advisers to have a plan in place.

5 Questions to Ask Before Giving to a Nonprofit

With Thanksgiving in the rearview mirror and Christmas around the corner, now is the time that many citizens and businesses across the Magic Valley will show their generosity and donate to local charities and nonprofits.

“Nonprofits touch every part of our lives, they’re so critical to our community” said Janice Fulkerson, executive director of the Idaho Nonprofit Center. “Nonprofits provide books and education, clear trails, keep water safe, take care of the elderly and vulnerable, run after-school programs and do much more.”

Donating to a nonprofit this holiday season can also be a gift to yourself as you secure a last-minute tax break, and with so many worthy nonprofits operating in the Magic Valley, finding the right one to support during the holidays can be a challenge.

Before you give to just any nonprofit, it’s important to make sure the organization is using the money properly and using your donation to help the community.

With that in mind, here are five questions to ask before giving this holiday season.

1. Is the Charity Tax-exempt?

Before you decide to give, verify that the charity is a registered 501©(3) — a type of nonprofit — with the Internal Revenue Service. If you’re unsure of a charity’s status, check sites such as charitynavigator.org for reviews and guidestar.org for their 990 tax forms (required of nonprofits).

But, it’s also important to know the difference between tax exempt and tax deductible, especially for those who are looking for a break on their 2015 taxes.

“Tax exempt means the organization doesn’t have to pay taxes, but your contribution might still be taxable,” Fulkerson said. “Tax deductible means you can deduct from your federal income taxes next year. If that’s what’s driving your contribution – and any reason you donate is good – make sure it’s tax deductible.”

2. How will your Donation be Used?

“Many nonprofits have several different programs they’re working on, and it’s okay for money to be used for operations,” Fulkerson said. “But what amount is going to be used for operations? If it’s more than 25 percent, you should ask further questions.”

Using money to pay qualified staff is not a problem, Fulkerson said.

“If it’s going to staff, that’s good,” she said. “Especially if you’re paying people to deliver health care, hospice, medical services – you don’t want just anyone doing that. You need qualified people, and a good staff can do good things like help foster kids or deliver food to the needy.”

3. How Much Is the Executive Director’s Salary?

This question relates to the last question, and it’s important for nonprofits to be led by a competent executive director.

Lynn Hoffman, the former director of the Idaho Nonprofit Center, told the Times-News in a previous interview that it’s important to look at ratios.

“If the budget is $250,000 and the chief was making $150,000, that would be a real cause for concern,” Hoffman said.

According to the IRS, a nonprofit’s chief executive officer should receive a “reasonable” compensation. But the tax code remains vague on how much is unacceptable.

4. Does the Nonprofit Have a Board?

You should also ask if board members are volunteers and how many of the board members contribute to the organization, Fulkerson said.

It’s a red flag if board members are getting more than just reimbursements for travel to meetings.

“Individuals who participate on a nonprofit board of directors should do so for the public good, not for a salary,” Hoffman said.

5. How is the Charity Making a Difference?

Part of this goes back to knowing how your donation will be used, Fulkerson said. Your donation could stay local or could be used internationally.

“Make sure you know where your money is going,” Fulkerson said. “Lots of nonprofits serve your city, county or state, while others are used for things like helping kids with AIDS in Sierra Leone. Those are all fantastic, but you should know where the money is going.”

Another key thing to look for is if a nonprofit is working together with other nonprofits on a charitable program, which can maximize the impact without duplicating effort.

“Imagine four charities working together,” Fulkerson said. “What a great way to get the most from your donation.”

Of course the best way to know if the charity is making a difference is to volunteer some of your time as well as your money.

“People need to do their due diligence,” Fulkerson said. “If they have time, call up the staff, or better yet, volunteer and get insight on what happens on the inside.”

7 year-end tax tips

The holiday season is upon us and tax planning is probably the furthest thing from your mind.  For many taxpayers, more time and effort was put into their Cyber-Monday shopping strategy than year-end planning.  It is important to remember that effective tax planning is often done before the tax year is over – and that time is now. 

 "Many tax planning strategies must be implemented prior to the end of the tax year (December 31) in order to receive benefit for the year, so December provides a last chance opportunity to review your current tax situation with your CPA and/or other advisors in order to put into motion various tax planning strategies."  Consider reviewing the following opportunities before 2015 comes to an end.  

Boost retirement plan contributions

One of the most effective ways to reduce your taxes is to simply reduce your taxable income. For 2015, taxpayers can save up to $18,000 (up from $17,500 for 2014) in their 401(k) plan and those over the age of 50 can add another $6,000 (up from $5,500 for 2014) for a total of up to $24,000. While pre-tax contributions will reduce taxable income for 2015, after-tax Roth 401(k) contributions may be more advantageous depending on your circumstances. Consider reviewing your year-to-date contributions and make any last minute adjustments to ensure that you are able to accomplish your savings goals for this year. 

Double-check required minimum distributions

When most retirement account holders reach age 70 1Ž2, the IRS requires that Required Minimum Distributions (RMDs) are withdrawn by December 31 of each year.  Be sure to carefully review RMDs for inherited IRA accounts as they too are often missed by beneficiaries. 

So what happens if you fail to take an RMD?  Unfortunately, the IRS levies a harsh 50 percent penalty on the amount of the RMD that should have been taken so double-check that distributions are correct. If you miss your RMD consider filing Form 5329, as it may be possible to waive the penalty if you can substantiate that the shortfall was due to reasonable error.  Consider reviewing Publication 590-B for additional information.

Review tax withholdings

Underpayment penalties are another common, yet avoidable issue that often trips up taxpayers.  Simply reviewing your income and estimated tax throughout the year with your tax professional may help ensure that you are properly withholding. 

Depending on your circumstances, estimated payments of 110 percent of the prior year tax liability may be necessary to avoid underpayment penalties. Consider reviewing Publication 505, Tax Withholding and Estimated Tax, for more information.

Donate to charity – especially appreciated assets

Financially supporting the charity of your choice can also be an effective way of reducing your overall tax liability. You must file form 1040, itemize your deductions and donate to a qualified charity in order benefit claim the deduction. 

Donated cash or property of $250 or more require a written statement from the organization with a description of the donation amount. Maintaining detailed records that substantiate the contributions being made is must. For donations of noncash gifts greater than $500, file Form 8283 - Noncash Charitable Contributions. 

For taxpayers subjective to higher capitals gains rates, donating appreciated stock held for greater than one year can be great way of maximizing a charitable deduction while sidestepping capitals gains taxes.  But be careful, donating appreciated assets held for less than one year may result in your deduction being limited to the original cost or investment.

Tax gain/loss harvesting

Many taxpayers are familiar with the strategy of tax-loss harvesting – selling investments within a taxable account that have declined in value in order to capture a tax loss.  This approach allows for up to $3,000 per year in losses to be written off against ordinary income with excess losses carried forward to offset future gains.  Keep in mind that IRS wash sale rules may apply, preventing you from claiming a loss if you buy a substantially identical investment within 30 days of the sale.

Another overlooked opportunity is tax-gain harvesting.  If you identify that your taxable income is $74,900 or less for those married filing jointly or $37,450 or less if filing single, you may be eligible for the zero percent long-term capital gain rate for assets held greater than one year. This may be especially useful if you find that your income has suddenly dropped in a given year.

Accelerate deductions

Depending on your tax situation, accelerating certain payments so they take place in 2015 can be another approach to reducing tax liability.  From an estimated state income tax bill that is due January 15 to a hospital or property tax bill due early next year, paying deductible expenses prior to year-end can also add up.  However, be careful - accelerating deductions could end up subjecting you to the alternative minimum tax so speak to your tax adviser before bunching up your tax deductions.

Empty FSA accounts

Flexible spending accounts (FSAs) allow employees allocate a portion of their compensation into an account that can then accessed to pay everything from child care to medical bills.  While the contributions to an FSA are tax advantaged – avoiding both income and Social Security taxes, unused funds that remain in the plan at year-end could be forfeited.  Consider reviewing your balance and speak to your administrator to see if your plan allows for a grace period which pushes the deadline to March 15 of next year.

The best tax planning is pro-active rather than reactive. Since everyone's situation is unique, consider speaking to your financial and tax advisers to determine the most appropriate tax strategies for you.

Time to start talking about taxes

One of the best ways to save on income taxes is to max out your 401(k). You can contribute up to $18,000 to your 401(k) in 2015 and, if you are older than age 50, you can make an additional "catch-up" contribution of $6,000. But this is just the beginning. At the end of the year, you should sit down with your financial planner to review the "nuts-and-bolts" that can impact taxes -- for example, estimated tax payments, the sale of a residence, and distributions from qualified plans or IRAs.

In addition, reviewing your estate plan may help reveal some additional tax-reduction strategies appropriate to your situation.

For example, one thing that could help save taxes is to shift passive income-producing assets such as rental real estate to a family limited liability corporation (LLC) or a family limited partnership (FLP).

Gifting can also be a sound tax-savings strategy for dentists. Instead of giving cash to a charity, consider gifting appreciated assets. You don't have to pay any tax on the gain and neither does the charity. You get the deduction for the gift subject to certain limitations and you eliminate the capital gains tax.

The stealth tax

“Gifting can also be a sound tax-savings strategy for dentists.”
Under the alternative minimum tax (AMT), often referred to as the "stealth" tax, you lose parts of certain deductions -- medical expenses, interest on second mortgages, state and local taxes, and charitable gifts among them -- once your adjusted gross income reaches a certain level.

The highest federal income tax rate is 39.6%; the highest AMT is 28%. In tax preparation, your income is run through both calculations and you pay whichever one is higher. So, for example, if your federal tax is $90,000 and the AMT is $100,000, you pay $90,000 federal tax and $10,000 for AMT. To be strategic about taxes, try to balance your ordinary federal income tax with your AMT tax amount.

Think about the future

The popular 529 college savings plans have emerged as terrific college funding planning tools for families who can front-load up to five years' worth of contributions per child. Under a special election, a 529 account owner can choose to front-load up to $70,000 per beneficiary, or $140,000 for married couples, into the college savings plan without generating a taxable gift -- assuming no other gifts are made to the beneficiary over the five-year timeline.

Year-End Tax Planning Strategies for Solo and Small Firm Practitioners

FROM WISBAR.ORG

In 1916, the famed legal scholar Julius Henry Cohen asked the question of whether the practice of law was a business or a profession.¹ While the degree to which a legal practice resembles (or should resemble) other commercial enterprises has been debated before and since, there is no debating that solo and small law firms are taxpayers, just like every other small business.

As such, lawyers running solo and small firms should be mindful of the year-end tax planning practices and tips that apply to other kinds of small businesses.

There is still time this year to take some simple yet crucial actions regarding your firm’s finances that will have a direct relation to the size of your tax bill come April. By no means is this article intended to be a comprehensive list of those actions. However, being mindful of a few basic strategies may provide an outsized benefit if you haven’t paid attention to these issues previously.

Before You Do Anything, Talk to an Accountant

If you have not yet developed a relationship with an accountant, now is the time. There is no substitute for the advice of a qualified tax planning professional, even if you think your practice is too small to warrant hiring one. A good accountant will not only be a valuable resource for advice regarding your practice’s finances, he or she will also likely be an essential networking and referral source.

That said, below are some of the basic strategies and issues to consider when working with an accountant to minimize your 2015 tax bill.

Deferring or Accelerating Income

One of the most basic tax-planning strategies is to proactively determine the year in which you recognize income for tax purposes.

Generally, “accelerating” income means recognizing it in the current tax year, while “deferring” income means recognizing it in the next. Your expectation regarding the rate at which your 2016 income will be taxed has a direct bearing on your decision whether to accelerate or defer the recognition of income.²

If you expect to be in the same or lower tax bracket next year it generally makes sense to defer the recognition of income. Most small firms and solo practices use cash-method accounting for tax purposes. Under the cash method, you must recognize “all items of income you actually or constructively receive during [a] tax year.”³ “Constructive” receipt of income generally means that income has either been credited to your account, or has been made available to you, or your agent, without restriction.⁴ In other words, if you receive a check in 2015, merely waiting until 2016 to deposit it will not act to defer the income because you have already “constructively” received the income.⁵

To effectively defer income until next year, you can simply wait to send out invoices until after the first of the year. However, this strategy should only be employed with clients that have solid payment prospects. It’s better to pay income tax sooner than to never receive the income at all!

Conversely, if your practice is booming, you might expect to be in a significantly higher tax bracket next year. If that’s the case, congratulations. Also, you may want to consider recognizing as much income as possible this year as opposed to next in order to avoid paying more tax upon that income. Take the opposite approach to end-of-the -year billing in that case – bill early and often in the hope of getting as many checks in the door before December 31 as possible.

Deferring or Accelerating Expenses

Deferring or accelerating expenses will have the same net effect upon your tax bill as deferring or accelerating income.

By incurring expenses this year rather than next, you will effectively lower the amount of income you recognize for tax purposes. Delaying expense recognition until next year will have the opposite effect and increase the amount of income you recognize this year and potentially lower the amount you declare in 2016.

There are some basic end-of-the-year strategies that you can employ to affect the time that you incur certain expenses related to your practice.

First, you can charge a necessary expense on a credit card at the end of the year, or pay with a check that you mail a few days before year end. Although you won’t actually incur any cash outlay until next year, you can claim the expense as a 2015 deduction. Subject to certain rules that your tax professional can explain, you can also prepay certain 2016 expenses (such as rent and insurance) this year and claim a 2015 deduction.⁶

Examples of generally deductible expenses that you may want to take sooner (or possibly later) include setting up and/or contributing to a retirement plan, contributions to charity, paying bonuses to your employees, and throwing a holiday party for your employees, clients, and referral sources.

Even travel over the upcoming holidays can be deductible to the extent the travel can be attributed to business purposes.

A last-minute development in this area relates to Internal Revenue Code (IRC) Section 179, which allows businesses to deduct the full cost of certain types of property on their income taxes as an expense in the current tax year, rather than requiring the cost of the property to be capitalized and depreciated over several years.⁷ Between 2010 and 2014 the dollar limit for section 179 deductions was $500,000.⁸ However, after 2014 the limit dropped to $25,000.⁹

In February 2015, the U.S. House of Representatives passed a measure that would permanently reinstate the $500,000 limit on section 179 deductions that was available from 2010 through 2014.¹⁰However, as of this writing, the fate of that bill is uncertain, another good reason to consult a tax professional, as the outcome could have a significant impact on your 2015 tax bill.

Keep Up with the Latest in Tax Law

The strategies discussed above just scratch the surface of the proactive decisions a small firm operator or solo practitioner can make before the end of the year to minimize their firm’s tax liability. A qualified tax professional will be able to advise you on the latest developments in tax law that are of particular interest to small firms and solo practitioners.

For instance, although solo and small firms in Wisconsin commonly practice in the area of personal injury, many aren’t aware that the Wisconsin Tax Appeals Commission held this year that the purchase of paper copies of medical records for clients is not subject to Wisconsin sales and use tax.¹¹

This may have been a significant expense incurred by many such firms over the last few years. A qualified tax professional can help you apply for a refund of any such tax paid by your firm within the statute of limitations.¹²

Also, many solo practitioners work out of their homes but aren’t aware that, starting in 2013, the IRS simplified the rules for deducting expenses related to the business use of your home.¹³ However, the choice of whether to use the simplified deduction is, once again, one that you should discuss with a qualified tax professional.

Conclusion

Perhaps most importantly, consulting with an accountant or other qualified tax professional allows you to take the stress and guesswork out of tax time.

Doing so can help smooth out the financial peaks and valleys often incurred in small firm and solo practice. It also allows you to concentrate your efforts towards growing your practice so that 2016 can be your firm’s best year yet.

Year-end tax tips that often go overlooked

Year-end tax moves that are often overlooked. Here are three:

Pay winter semester tuition now. 

If you are a student or have a student in college, and tuition is due in January or February next year, you may want to consider paying that tuition bill now. Doing this may help to maximize any education tax credits you might be eligible to claim. One such credit is the American Opportunity Tax Credit which provides a tax credit of up to $2,500 per student.

 You'll also want to check with the college or school to ensure they have a correct record of all qualifying education costs you paid in 2015 to ensure they are prepared to report these correctly on Form 1098-T. If you attempt to claim the credit for amounts not reported on this form, the IRS is sure to reject the credit -- and it's time-consuming to correct this avoidable mistake.


Take distributions from your IRA. 

Folks who are age 70 or older this year need to keep in mind that the IRS requires you to take mandatory withdrawals from retirement accounts. The minimum amount you must withdraw is specified on a table in IRS Publication 590, which lists the factor to use based on your age, for calculating the amount you must withdraw.

If you turned 70 this year, a one-time rule allows you to delay taking the first mandatory distribution by April 1 following the year you turn 70 1/2. But don't delay and wait until the April 1, 2016, deadline to take out the first minimum withdrawal. If you do, you'll also have to make another withdrawal by December 31 2016. Two minimum withdrawals in the same year could bump you into a higher tax bracket and increase your total tax liability in 2016.

You'll want to get this right, because doing it incorrectly can cost you. If you don't withdraw enough or you don't make IRA withdrawals on time, the IRS can levy a penalty of up to 50 percent of the difference between the amount you took out and the amount you should have taken out.

Regardless of whether you are still working, you must begin taking minimum required distributions each year from your traditional IRAs. Folks still working can continue to put off distributions from their employer's retirement plans. Roth IRAs are not subject to these distribution requirements.


Make sure to notify the IRS if you've moved.

Complete and submit IRS Form 8822 to notify the IRS. This may also help to thwart any fraudsters who attempt to file a fraudulent tax return using your information and your former address. Also gather your records of the costs of your move as you may be able to claim the Moving Expenses Deduction if you moved or relocated for work in 2015

10 Year-End Smart Tax Strategies for Business Owners

FROM ENTREPRENEUR.COM

The end of year is quickly approaching, and it’s time for taxes. Hundreds of business owners will turn to their advisors for tips and strategies on how to save money and they’ll all get the same time-worn response: Sell under-performing stocks to harvest losses or make sure you have spent the money in your flexible spending account.

Don’t fall into that trap. As a business owner you have at your disposal several money-saving strategies to consider before the year ends. Here are those top 10 strategies that can save your bottom line:

1. Make an S-election on an LLC you set up this year and use it for operations.
We implement this election for clients every year in December. If you’ve previously paid a lot in self-employment tax and had an LLC (sometimes a major mistake by other planners), you can easily still elect to be taxed as an S-corporation, retroactively, to January 1, 2015. It’s simple and affordable to file the proper paperwork. There are new IRS regulations that allow for this retroactive classification at year's end. However, don't forget to do your payroll. You are required to take some payroll for yourself out of the company if you make the election.

2. Set your payroll amount.
S-Corporation owners or newly elected LLC S-Corps must complete their payroll before year's end. Many business owners tend to wait until the fourth quarter to do this, which is not a good idea and can be a flag for a potential IRS audit. If you’ve already done your quarterly payroll throughout the year, this can be a great time to adjust it to the proper amount . . . maybe increase it or lower it, based on your net-income.


3. Put your kids on the payroll.
Surprisingly, this is an often overlooked or under-utilized strategy. Paying your children for bona-fide services they provide in your business can be a powerful tax-saving tool. First, an incredible benefit is that if you pay your children through a sole-proprietorship or single member LLC, and the child is less than 18 years of age, the business is not required to withhold FICA or payroll taxes. Second, the child can use his or her standard deduction of $6,300 in 2015 against any income you pay, as that sum is earned income and thus entails no income taxes. However, if you have an S or C-corporation, the Internal Revenue Code requires that you withhold FICA from all employees on the payroll.

So, use a separate business account for these payments that complies with regulations. For any naysayers out there, keep in mind that the “kiddie tax” does not apply in this situation, as it only applies to passive income. It’s also critical to follow the proper procedures and have bank accounts for the children, to follow through with the payments and to document bona-fide services. Cleaning the office, filing, shredding paper and working on the rental property are all great jobs for the kids.

4. Put your spouse on the payroll.
As a business owner, you should consider this strategy only if your spouse wants to contribute money to your company 401(k) for tax-planning purposes. Otherwise, generating earned income for your spouse and subjecting it to payroll taxes would be careless. Moreover, that move really doesn’t make sense, to get a deduction for a salary that will end up on your joint return anyway.

5. Implement a 401(k) before year's end.
A properly designed 401(k) can be self directed and utilized in real estate transactions, hard-money lending and small business investments. This year, small business owners can deduct up to $51,000 with matching: That’s $18,000 as your deferral before matching, with an additional $5,500 for those 50 and older. However, the payroll level you choose for yourself needs to be carefully considered in this process.

6. Start establishing your entity now.
January 1 is a perfect time to set up your books and a bank account. A number of states impose franchise taxes and fees that make it most economical and logical to file articles in and around the first of the year. That could mean an LLC for that new rental property and getting the title transferred into your LLC, or an S-corporation, because you paid far too much in self-employment tax during 2015. Just make sure you don’t file too early and create a short-year tax return. Timing is everything.

7. Close on that rental property.
Cost segregation is one of the fastest growing areas in tax planning and has been used only by owners of large commercial projects. Essentially, cost segregation is the process of reclassifying the assets of a rental property into real and personal property, thus moving certain assets into an accelerated depreciation class. This allows property owners to defer thousands of tax dollars. That said, it’s critical that you consider the real estate professional classification and other passive income you may be able to deduct this segregated depreciation against. You could end up with a write-off that falls into a carry-forward status if you aren’t careful.

8. Purchase a vehicle.
More than 90 percent of our clients use the mileage deduction strategy. However, businesses that could use a large truck or SUV should consider the purchase of a vehicle weighing more than 6,000 pounds. The current deduction for depreciation can be up to $25,000, depending on the cost of the vehicle and your business-use percentage. Congress is expected to expand this deduction to $500,000 at the last minute, just as it did last year, in December 2014. With this increase, the deduction can vary dramatically among an SUV, RV or truck with a 6-foot bed. Discuss your options with your tax advisor.

9. Make a ROTH conversion.
I cannot emphasize this strategy enough! Consider converting your traditional IRA or 401(k) to a Roth IRA, and start paying taxes at a lower rate without paying taxes on your withdrawals in the future. Regardless of your income, you can convert as many dollars as you want. However, you should carefully consider your tax bracket and how much is in your IRA before switching over. You’ll want to keep your marginal tax bracket in check. And as long as you make the election before December 31, you can reverse the election by April 15. So, if you get gunshy later or can’t pay the tax you were expecting, check the reset button.

10. Push income or expenses to the proper year.
This is a standard strategy, but a tricky one, with higher tax rates. Typically, you want to push income to the next year and accelerate expenses to the present year. However, when you're spreading out income between this year and the next, try to stay under certain higher marginal tax brackets.

Should you consider any or all of these strategies, it is imperative to have a decent set of books so you can make informed and accurate decisions. One of the best year-end strategies you can implement is just getting your bookkeeping in order to start the year off making better management and economic decisions for your business.

As you can see, there are plenty of options for the small business owner, and unique ones at that. Make sure you consult with your tax advisor and don’t be satisfied with the standard answer that you can simply sell some under-performing stocks to save taxes. A small business owner’s tax return offers a lot of potential to keep the tax man at bay.