Year-End Tax Planning for Individuals and Small BusinessesDecember 8, 2017
Don’t look now, but the 2018 tax season is just around the corner. Year-end tax planning can reduce both your tax burden and stress once the filing season arrives.
Year-End Tax Planning for Individuals
Give to Charity
Charitable donations come from the goodness of your heart, not for the tax benefits. With that said, if you plan on itemizing your deductions for 2017, the holidays are a great time to donate clothes and goods, or perhaps make a larger contribution to a cause that is meaningful to you.
Ask About New Developments
Tax laws are constantly changing, and presidential election years are particularly volatile. Stay in the know by asking your CPA to give you a brief rundown of this year’s developments and how they might affect your taxes.
Apply Personal Changes
Life events–such as marriage, a child, divorce or a new job–will undoubtedly have an impact on your tax planning. Implement changes at year’s end so you have a better idea of what to expect on your return.
Year-End Tax Planning for Small Businesses
Defer or Accelerate?
Small businesses have the option to either defer income and accelerate deductible expenses, or accelerate income and defer deductible expenses. Have your accountant explain the benefits and drawbacks of both as they relate to your business.
Establish an Entity
For those who are in the early phases of starting a business, or are branching off into other businesses, Jan. 1 is the ideal time to set up books and finances for a new entity.
Understand Your Strategy
Most importantly, take the time to realize what the decisions you are making mean for the business. Year-end tax planning plays a large role in your business finances, and each year sets the stage for the next.
Looking for assistance with your year-end tax planning? The Curchin Group is a mid-sized accounting firm that’s large on experience. We help individuals and businesses make smart, informed tax decisions. Learn more about our team here.