Tax planning season is upon us. Have you reviewed your income and expenses this year to see if there are ways to minimize taxes? Even though uncertainty still exists regarding possible changes to the tax code, there are some considerations that could be beneficial no matter the end result of the legislation.
All small businesses and associated individuals should think about the following: Would increased retirement plan contributions make sense this year? Are there capital purchases you know you will need to make next year that you may want to make before this year-end to maximize a deduction? Does it make sense to accelerate some deductions and defer income into 2018? On the other hand, if you are expecting a dramatic increase in profitability in 2018, would it make sense to defer some expenses from 2017 to 2018? Consider the pros and cons of paying out bonuses or taking shareholder distributions – how could this impact your tax liability this year and next, and how does it impact the overall health of your business?
While tax planning really should happen year-round, it is important to make sure you review your situation before year-end to avoid unnecessary tax bills. At Bumpers & Company, we take a proactive approach through our tax planning process, so clients are in the best possible position at the end of the tax year. Contact us today to set up your tax planning appointment.