WHAT ARE SOME MONEY-SAVING YEAR-END TAX PLANNING TIPS?
The end of the year is a great time to take steps to ensure you are ready to file taxes in the new year. Getting everything together and organized will make things a lot easier once you begin filling out tax forms. Like every process, though, there is always room for improvement. With that in mind, you might want to start considering the following tips for your Texas business.
Bank of America notes that owning a small business at tax time can be frustrating, but it does not have to be when you take certain steps to reduce your tax liability. One of the earliest things to do is to look ahead to tax time early in the year. This will allow you to plan your finances accordingly, so you have money set aside for paying any taxes due.
You should also keep good records of any purchases for the business, particularly equipment. You may be able to take large deductions for these purchases. You also need to note any charitable giving, which offers another deduction.
Consider holding off on collecting revenue until the tax year ends. On the flip side, you may want to pay certain deductible expenses before the end of the year. This is especially helpful if you notice your income is higher for the tax year than usual.
Finally, always consult with a professional to find out about any changes in the tax laws. A professional can also help you with deductions and other credits to ensure you get the most you can. This information is for education and is not legal advice.