Year End Business Tax Planning

Many strategies to reduce your 2017 tax liability will expire on 12/31/17. It is crucial to review your tax situation prior to the end of the year and implement any potential tax savings measures while you still have the ability to do so.  As a business owner there are a myriad of potential planning strategies available. Below are a few of the most common.

• Defer taxable income and accelerate business deductions.
• Take advantage of generous depreciation deductions, including the potential “Heavy SUV deduction” for trucks or SUVs weighing over 6,000 pounds.
• There are many different qualified retirement plans to choose from and they all (with the exception of a SEP IRA) have to be established by 12/31/17 if you want to make a contribution for the current year. A SOLO 401(k) is often the best choice if you are the only employee (or you and your spouse are the only employees) in your business and you want to maximize your annual contributions.
• Ensure that you have enough tax paid in to avoid penalty on your 2017 tax return. To avoid a penalty on your 2017 return you need to have at least 90% of your 2017 tax liability paid in by year end. If you are not sure what your tax liability will be the alternative approach is to pay in 100% (110% if your AGI is greater than $150,000) of your 2016 liability.
• Reminders for Georgia companies: Renew your county business license by year end, issue 1099’s and W-2’s by January 31st, file your corporate or partnership return by March 15th, renew your LLC or Corporation by April 1st, and file your business personal property tax return by April 1st. Now is a good time to make sure that your 2017 bookkeeping is almost complete!
• Speaking of bookkeeping: If you are looking to sign up for Quickbook’s new (and very good) online version of their software, we are happy to offer all business clients our 50% wholesale pricing discount. Just let us know BEFORE you sign up so that we can get you locked in at the discounted rate.

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We have also posted a Year End Tax Planning For Individuals article that you can review in conjunction with this article.

This is general information and a brief summarization of complicated tax issues which are often subject to many exclusions and limitations. We make every effort to verify the accuracy of all information but we do not guarantee or warranty advice disseminated over the internet. Please give us a call to discuss potential strategies and ensure they make sense for your specific situation.