Are you a business owner counting down the days to the tax deadline?

Are you looking for some business tax tips on deductions that you may have missed?

Following up on Business expenses that can generate a tax deduction can be time-consuming, especially if you are not familiar with them. Trying to figure out which ones you qualify for may be difficult.

Having a guideline to follow can help.

Here’s a guide on some of the tax tips you may want to consider:

1. Charitable Deductions

✓    You can’t deduct the value of your time or effort spent doing
charitable work, but you CAN DEDUCT donations and out-of-pocket expenses like transportation costs, telephone charges, uniforms purchased on behalf of a charity, hosting a foreign exchange student, and fundraising dinners.

2. Reduction of Your Personal Income Taxes

✓    Going Green – Installing certain energy saving devices that qualify for a tax deduction.
✓    Consolidate – Non-deductible debt under a home equity loan, so it is deductible.
✓    Bunch Itemized Deductions – Put all your itemized deductions into one year instead of taking the standard deduction.
✓    Pay State Tax Within This Year
✓    Review Taxable Brokerage Accounts
✓    Think Ahead – Review your tax situation in the 4th quarter of a given year, look at the following year to determine which year the deduction will create the largest cash flow savings.

3. Business Year-End Planning

✓    Capital Expenditures – Take advantage of bonus depreciation and IRD section 179 expensing, by planning capital expenditures for the 1st quarter in the year and placing them in service by the end of that year.
✓    Company Parties – Track holiday parties or any other get-togethers where your entire workforce is included. These may be deducted separately and do not fall under the 50% deductibility limits as other entertainment expenses.
✓    Plan Year Around – In order to have a significant effect on your tax planning and actual cash saved.
✓    Review Production Activities – Under Section 199 of the IRC, a business may be able to claim a special deduction relating to qualified production activities.

For more detailed information about these Tax Tips download our FREE ebook: “16 Year-End Tax Tips.”

Makara & Associates, LLC

When you need help with tax planning and tax preparation, contact our team of professionals. We provide quality service to each one of clients, which is based on our knowledge and specialization for each of our services rendered.

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Do you have tax questions you need answers to? You have come to the right place. We’ll be happy to accommodate you.

Would you like us to review your tax situation? Contact us online or call our Naples Office at (239) 384-9688 or our Fort Myers Office at (239) 768-5008.

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-Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.