Last-Minute Tax Tips for Small Business Owners

Small Business tax tipsThe end of Q4 — and the 2013 tax year — is now in sight. If you’ve been adhering to the principle that tax preparation is a full-time, year-round responsibility, then you’re probably in excellent shape in terms of having all required records, receipts, and other important documentation organized and close at hand. Moreover, you’ve likely been making savvy financial moves all year long for the express purpose of limiting your total tax liability as much as possible.

But all too often the day-to-day obligations of running your own company end up consuming so much of your energy and focus that even the best tax-related intentions can quickly fall to the wayside. If you now find yourself in this category, as so many small business owners do, the good news is there’s still time to capitalize on the various incentives, credits, and reporting methods designed to reduce your overall tax burden. Towards that end, here is a short list of last-minute tax tips for small business owners:

  • Review some of the tax breaks scheduled to expire at the end of this year and be sure to take advantage of the ones that apply to your business situation (https://www.sba.gov/community/blogs/use-%E2%80%98em-or-lose-%E2%80%98em-5-tax-breaks-set-expire-year)
  • Make the maximum allowable contribution to your retirement fund and consider setting up SEP IRAs or similar tax-deductible pension plans for your employees
  • Gain Work Opportunity tax credits by hiring a qualified veteran, SSI recipient, food stamp recipient, or other individual from a targeted group
  • Write off up to $10,000 in startup expenses by launching that new subsidiary or website you’ve been thinking about
  • Report furniture, equipment, vehicles, fixtures, machinery, and other qualifying property as Section 179 expenses now instead of depreciating those items over the course of several years

These are just a few of the more wide-reaching tax breaks and credits that your small business may benefit from if minimum requirements are met before the end of the fiscal year. Positioning your company to take advantage of these incentives prior to December 31 can have a significant impact on your 2013 tax bill, so act now.

And as always, if you wish for personalized tax advice for your specific financial circumstances, contact our office today to set up a consultation.