Wednesday September 14, 2016
Year End is a crucial time in a tax strategy. Once the year has ended some tax opportunities are gone forever. Tax planning is the art of arranging your affairs to postpone or avoid taxes. There is a significant difference in tax avoidance and tax evasion.
Tax Evasion vs. Tax Avoidance: One measure of the extent of tax evasion is the amount of unreported income, which is the difference between the amount of income that should be reported to the tax authorities and the actual amount reported. In contrast, tax avoidance is the legal use of tax laws to reduce one's tax burden.
Tax planning means deferring and avoiding taxes by taking advantage of beneficial law provisions, increasing your deductions, decreasing your tax liability and making maximum use of all applicable breaks under the Internal Revenue Code. By using effective tax planning strategies, you can have more money to save and invest or more money to spend, or both.
This is a service that all of my tax clients receive free of charge. My goal at Secure Accounting and Tax Solutions is to help you keep more money in your pocket and pay less money in taxes. Consider spending a half hour with me either by phone or in my office to realize ways that you can get your money to work harder for you and not the other way around.
Here are 7 Year-End Tax Tips for your Small Business:
1) Review your Financial Reports.
2) Defer Income earned in 2016, if possible.
3) Make Purchases.
4)Make sure all business expenses are accounted for, to maximize your deductions.
5) Start or contribute to a Retirement Plan.
6) Contribute to your Favorite Charity.
7) Schedule your tax planning session with Secure Accounting Today! Start preparing for next year!