The best time for tax planning is now, right before the end of the year. The reason why is there is still time to make changes that will impact how much taxes you pay. Several things with regards to the tax laws have changed this year, so it’s important to have proactive planning done by your CPA.
Things to think about would be deferring income to next year. This can be a viable strategy if you think next year you will be the same or higher tax bracket. However, we still haven’t heard if there will be a solution to the alternative minimum tax for 2010, but feel the chances are good. Accelerating tax deductible expenses is also helpful before the end of the year.
Many of former President George Bush’s tax cuts are set to expire in the near future and President Obama is facing huge budget deficits that may require significant tax increases to repay money that has been spent this year. In these uncertain tax times, you may want or require professional answers to your specific tax questions.
Are you interested in getting started in finding out the answers specific to your tax situation? You can go ahead and contact us and we will review your year-to-date information and determine if you have underpaid, or overpaid, your taxes. We will then make planning recommendations to attempt to reduce your 2010 tax burden. The next step will be to analyze your tax situation for 2011 and beyond to determine if you should accelerate, or delay income or expenses to put you in a better tax position. We can also review your employer retirement plan options to ensure that you are taking full advantage of these offerings.
For business owners we can expand on the services discussed above by reviewing your year-to-date business activity. Many opportunities exist for businesses, because they can prepay anticipated expenses by year-end and deduct them. Equipment purchases have very liberal tax incentives this year. There are also tax credits for paying for employee’s health insurance. We also can make suggestions with regards to setting up company retirement plans, and helping you determine which plan might best suit your needs. Don’t wait any longer, give us a call today at (970) 492-6947.