6 ways to save on business taxes before year end

Most people think they have until April 15 to make their tax moves. But as business owners, we know better. Whether your returns are due on March 15 or April 15 or whenever you’ve extended them, you know already that the time to save on your taxes is past. This checklist can help you avoid losing money to Uncle Sam.   

Meet with your CPA. As a certified public accountant, I’ve learned that there are good times and terrible times to deal with client questions. Anytime between February 15 and April 15 is generally a terrible time. It doesn’t get much better until the fall. So now is the best time to meet with your CPA. Review your prior year’s returns together. Take a look at your year to date numbers. Let them know if there’s any new or unusual transactions this year. Bring him or her up to date on your estimated payments made. Extrapolate out to the end of the year your expected income so that your tax liability can not only be forecasted, but steps can be taken to reduce that liability while there’s still time. No one likes surprises and good business owners know that to avoid surprises you must plan. 

Keep an eye on Washington. At the very end of 2014 certain tax incentives for businesses were extended for a year. This included the rules for accelerated depreciation and research and development. Every year these incentives seem to get kicked ahead another year. In 2015, most businesses can only deduct $25,000 for capital expenditures immediately and there is no research and development credit available. However, there continues to be discussions in Washington about these and other “tax extenders” and there’s a good chance that they may be extended yet again before the end of the year. So if you’re planning on buying capital equipment or conducting research keep an eye on this because you may be able to maximize your benefits if these rules are pushed forward another year.

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