Tax planning for Business year end
We are approaching the end of the fiscal year for many business clients and all personal clients. This is a good time to ask your tax professional for help in making some important decisions. Here are some tax saving ideas:
- If you need to purchase new or used equipment for use in your business, complete the purchase by December 31 and consider taking either a Sect 179 deduction or a bonus depreciation deduction for the full purchase price or installed cost.
- If you do not have a retirement plan in place and want to take deductions for tax deferred contributions to a plan, consider setting up a SEP IRA or SIMPLE IRA Your investment advisor and or CPA is a good place to start researching plan types. The plan should be in place by December 31 and contributions can be made up until the filing date (or extended filing date) of the tax return.
- Ask your tax advisor whether you may qualify for the QBID (qualified business income deduction) under Sect 199A. This is a complex new opportunity for tax saving under the TCJA( Tax Cuts and Jobs Act).
If you need further explanation or help with these tax saving ideas, please give a call at 704 491 5201 or email me at philip@titlestadcpa.com.
