6 Tax Strategies For Your Business in 2017
At Morris+D’Angelo, You Always Come First.
Our approach to your Personal or Business Tax Planning considers various tax options in order to determine when, whether, and how to conduct business and personal transactions to reduce or eliminate your tax liability.
Over the years, we have noticed many small business owners that often ignore Beneficial tax planning. Some don’t think about their taxes until it’s time to meet with their Financial Services Professional or Accountant. Tax planning is an ongoing process and you should be seeking good tax advice on a regular and scheduled basis. It is to your benefit to review your income and expenses monthly and meet with your CPA or tax advisor quarterly to analyze how you can take full advantage of the provisions, credits, and deductions that are legally available to you. 1
Plenty of tax planning strategies are available for small business owners. Some are aimed at the owner’s individual tax situation and some at the business itself, but regardless of how simple or how complex a tax strategy is, it will be based on structuring the strategy to accomplish one or more of these often overlapping goals:
- Reducing the amount of taxable income
- Lowering your tax rate
- Controlling the time when the tax must be paid
- Claiming any available tax credits
- Controlling the effects of the Alternative Minimum Tax
- Avoiding the most common tax planning mistakes
Some don’t think about their taxes until it’s time to meet with their Financial Services Professional or Accountant. Tax planning is an ongoing process and you should be seeking good tax advice on a regular and scheduled basis
In order to plan effectively, you’ll need to estimate your personal and business income for the next few years. This is necessary because many tax planning strategies will save tax dollars at one income level, but will create a larger tax bill at other income levels. You will want to avoid having the “right” tax plan made “wrong” by erroneous income projections. Once you know what your approximate income will be, you can take the next step: estimating your tax bracket. 2
Crystal-Ball estimates are difficult and by its very nature are not exact. But, you should already be projecting your sales revenues, income, and cash flow for general business planning purposes. The better your estimates are, the better that your tax planning efforts will succeed.
Contact Morris+D’Angelo. We’ll help you with Realistic Budgeting and Your Business Projecting.