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Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

4 Tips for Business Year-End Tax Planning

Posted by Mark On April 16th

When it comes to year-end tax planning it can be difficult to know exactly what you can deduct regarding business expenses.

Year-end Tax Planning

*Courtesy of Dave Dugdale

This is the third installment of 16 Year-End Tax Tips for 2013
which can also be downloaded from our eBook library.

Here are four tips to clarify business expenditures that you may overlook:

Tip  #1: Capital Expenditures

Speed up capital expenditures planned for the 1st quarter of 2014 and place them in service by the end of 2013. This allows you to take advantage of bonus depreciation and IRC section 179 expensing. 100% of new (not used) eligible capital expenditures are deductible if placed in service prior to December 31, 2013. IRC section 179 deduction has been increased to $500,000 with the phase out starting after $2,000,000 of assets placed in service in the same year.

Tip #2: Company Parties

Another reason to celebrate! Be sure to track holiday parties or any other get-togethers where your entire workforce is included. These expenses do not fall under the 50% deductibility limits as other entertainment expenses.

Tip #3: Plan Year Round

As you may have figured out, Tax planning is a year round activity (the fun never stops!) In order to get the largest cash savings, you should bring the following year into the process. Income swings from year to year can have a significant effect on your tax planning and actual cash saved.

Tip #4: Review Production Activities

16 Year End Tax Tips for 2013Under Section 199 of the IRC, a business may be able to claim a special deduction relating to qualified production activities. For 2013, the deduction is generally equal to 9% of the lesser of taxable income from qualified production activities. The Section 199 deduction isn’t limited to traditional manufacturers.

It helps to have a reference book on hand. Download our FREE eBook: 16 Year-End Tips for 2013.

Need assistance with your year-end tax planning, contact us at Makara & Associates, LCC. You can contact us online or call our Naples office (239) 384-9688 or our Fort Myers office. Our Ft. Myers accountants and Naples accountants will be more that happy to answer your questions.

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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.

 

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