Small Business Tax Tips
There are a few things you can do in order to save your business some money.Here are five tips to help you maximize your tax benefits
Defer income
Each and every penny you make up until December 31st of each year will be included in that year’s taxable income. Deferring income to the beginning of January of next year will save you some money in taxes for the current year.
Make charitable contributions
It’s important to check your list twice and see if any of your charitable contributions can come at the end of the year rather than the beginning of next year. This will maximize your deductions. Just be sure to keep your receipts.
Increase expenses
Do not procrastinate buying office supplies until next year; all year-end expenses are tax deductible and could save you a considerable amount come the next year. Look to things you will be using soon, including office supplies and equipment. Also consider paying January bills early in December.
Check for inventory write-offs
Look through your inventory to see if any products are damaged or outdated. Noting market-value loss could provide you with additional tax deductions.
Contribute to your retirement plan
Small business owners should recognize that being your own boss means you are responsible for your own retirement. If you haven’t started contributing to a retirement account (RRSP), now is the time. Any contributions made are tax deductible. And if you do have a retirement account, year-end contributions are a great way to boost your deductions. The dead line for RRSP contribution for 2013 tax year is March 03, 2014.
Professional Tax Preparers can help you get the most from your yearly tax filings. But the truth be told, they’re even more valuable when you enlist their help in year-round tax planning. Any good tax preparer worth his or her salt will save you more in taxes than they charge you in fees. Don’t wait to see how much a tax preparer could save you!
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