Year-End Tax Savings
There are not too many days left of the year 2011. While most might be looking forward to simply celebrating the new year that is about to roll in, you are probably sitting at your desk stressing over how to get some serious tax breaks before 2012 comes barreling in. There are a ton of resources out there on how to get these necessary tax savings, but most of them deal with your investments and such. Putting more money in your IRA is not the only way for you get a break though. Here are some tips on finishing up the year with tax savings.
- Create a shift in your business’ income and the expenses. Small businesses typically operate in a fashion where the taxes are paid on income once it’s received and the write-offs go into affect once an expense is paid. So, do not try to collect on all those receivables until after the new year, and pay some of your business expenses early.
- Get tools or equipment for your business now. Thanks to the federal stimulus, there are many things that you might need for your business now that you can completely write-off. Things like copy machines and new smartphones can be entirely written-off. These tax credits will not be as great in 2012 and eventually they will be no more.
- Let your family become an official part of the business. If your kids are constantly helping out by cleaning or stocking or anything, then it is time to put them on the payroll. Or you can hire them as a general contractor with a 1099 form. They will pay a small amount to Uncle Sam, but it is definitely less than you would.
- Take a vacation to ring in the New Year. Seriously, get away, and while you are on your trip meet with a potential client or have a meeting to write-off some of your trip.
