Has your business enjoyed financial success in 2014? You may now find yourself with the following concern: “My business made good money this year, and now I have to figure out how I can save on the taxes I’m going to pay!”
It’s a common lament, but one that can cause more trouble than create solutions. First, there is an implication in the statement that there’s a limit as to how much tax the business owner is willing to pay. Short of giving it away, the math is that more earnings mean more taxes. Second, the statement assumes that tax planning – and, more importantly, tax savings – is a task that is a year-end project. It doesn’t work that way.
Business owners often have only three major things that can be done yet this year to save taxes:
- Buy something deductible for the business
- Put more into a qualified plan
- Give more to charity
If, however, your plan is to save, diversify, and otherwise be more efficient with taxes in the future, there are myriad ideas that you can initiate this year that will pay off in succeeding years. A good place to start is to consider what not to do this year to save taxes.
Tempting as they may be, there are many quick-fix tax ideas to avoid. Read the entire article here. –Steve Parrish, Forbes