‘Twas the week before Christmas, when all through your small business,
all the employees were settling down, enjoying the holiday stillness.
Your reports are ready and filled out with care,
knowing good and well that tax season soon will be here.
When out on the floor there arose such a clatter,
you spring from your desk to see what was the matter.
Away to the door you fly like a flash,
it’s finally happened, your computers have crashed.
Laying your face down, smooshing your nose,
You’d planned everything out and now your office expenses just rose.
It’s too late you think to yourself, the timing is uncanny,
it’s too late in the year for any more tax planning.
Is this your Christmas tale? Don’t worry, it’s not too late for you! In fact, it’s never too late to do tax planning for your current tax year. As this year comes to a close, consider some opportunities your business may have when it comes to deductions and write offs (depending on the tax structure of your business of course.) Like the story above, perhaps you know that you need to purchase 3 new computers sometime soon, why not purchase the computers before the end of the year to receive the write off for this tax year (assuming you meet certain requirements)?
Take an honest look at this tax year, and ask yourself, would it be better to purchase these assets this tax year or next tax year. If you’re a small business and will have made $10,000 this year and are projecting to make $100,000 next year, the deduction will be more beneficial for you next year.
Further questions to think through when you are considering the end of this year:
- What is your business income for this year?
- What are you projecting it to look like next year?
- Are you considering prepaying certain expenses?
- When will your assets add value?
When tax planning, remember to remain calm; you’re not alone in feeling like this is a scary thing. This is the season for joy and peace on earth (regardless how cutthroat Black Friday was) and let that soothe you… then set up a consultation with us to help you finish this tax year strong.