Year-End Tax Planning

In order to avoid disappointment at tax time, one needs to pay close attention to tax issues before year-end. Here are some issues that need to be considered prior to or at year-end:

-Pay all business expenses by year-end even if they're not due till after year-end*;

-Purchase business assets such as needed office equipment;

-Pay all estimated State taxes by year-end*;

-Create and contribute to company-sponsored pension plan;

-Compile a list of business expenses for the year;

-Complete a mileage log to document business transportation expenses;

-Perform a physical count of inventory at cost as of the last day of tax year;

-Defer collection of accounts receivable until after year-end to reduce taxable income for the year*;

-Verify Accounts Receivable and Accounts Payable balances for accuracy as of last business day of tax year.

* For Cash Basis Taxpayers


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