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Credit Repair Information YEAR END TAX PLANNING AND PREPARATION FOR BUSINESSES – Tax Tips for 2004
by:
Dianne Goodman, CPA
Now is the better time to start thinking simply about your year end tax planning for your business. These tax strategies can be put into effect by the end of the year and several as late as once
the tax return is due. Planning now wish save you money and reduce your tax liability not only with your IRS taxes but besides with your state taxes. Here are tax tips that wish help you accomplish your goal.
DEFER YOUR Financial gain
INTO 2005
If you don’t obtain payment until the 1st week of Gregorian calendar month for cash basis tax returns and don’t bill until Gregorian calendar month for accumulation basis tax returns, you have effectively postponed your income. This works well if your 2005 financial gain
is equal to or less than it was for 2004. If not, you are delaying the inevitable and possibly
putt yourself in a higher tax bracket for 2005.
ACCELERATE DEDUCTIBLE EXPENSE INTO 2004
Anything charged on your business credit card Dec Thirty-first and prior is deductible in 2004 even as if it is paid in 2005. You can besides write a check on Dec Thirty-first that you would-be have usually paid in January. You may want to get a confirmation receipt to prove you mail-clad those checks in 2004. This works well if your 2005 financial gain
is equal to or less than it was for 2004. If not, you are delaying the inevitable and possibly
putt yourself in a higher tax bracket for 2005.
OPEN A RETIREMENT PLAN ACCOUNT
See http://www.dgoodmancpa.com/smallbusinessretirementplan.htm for an example of what you can do with that accessible profit tax postponed until retirement. This is a fantastic option for those who have the cash and want to contribute money into their personal retirement account and deduct that contribution from their corporate earnings. Makes it get any better than that?
BUY Instrumentality AND Software system BEFORE YEAR END
You can deduct up to $100,000 in instrumentality and software system purchases for the year under Section 179 depreciation expense. This includes sport utility vehicles, pickups and vans with a gross vehicle weight rank over 6,000 pounds. However, businesses should be aware of the change due to the American Jobs Production Act of 2004. Certain sport utility vehicles (SUV’s) are limited to $25,000 if they were placed in service after Gregorian calendar month 22, 2004.
These are simply several tax tips you should consider once
thinking simply about your year end tax planning for your business. If you have a specific question simply about your particular situation, e-mail me at dianne@dgoodmancpa.com and I wish help you muddle through the tax planning issues you may have.
This article was intended to provide general information simply about year end tax planning. It makes not contain all the rules and exceptions that may apply to your situation. If you have further questions regarding year end tax planning, I can be reached at www.dgoodmancpa.com.
Coming Shortly - E-mail me at dianne@dgoodmancpa.com and tell me what you would-be like to cognize much about. It simply mightiness be my next article!
CONTACT INFORMATION:
Dianne Goodman, CPA
Comprehensive Small Business Solutions, PC
505 323-2307
1 866-531-3035 toll free
http://www.dgoodmancpa.com
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2004 Year End Tax Planning and Preparation for Businesses – Tax Tips for 2004 by Dianne Goodman, visit http://www.dgoodmancpa.com for much content like this.
Just simply about the author:
Just simply about the Author
Dianne Goodman, CPA –Specializes in service Small Businesses and Individuals. Visit www.dgoodmancpa.comfor relevant and current information on a variety of fiscal and tax issues focusing on small businesses and individuals or call at 1-866-531-3035.
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