There’s still time for PB entrepreneurs to get a tax break
By Dian Vujovich
With Santa behind us, it’s time for every entrepreneur and small business owner in Palm Beach to make sure they’ve taken advantage of all possible tax breaks before year’s end.
Forbes published a list of tax breaks for the cash basis taxpayer that focused on accelerating deductions. Of course, it included the very wise advice of making sure to consult your tax advisor regarding all year-end tax saving possibilities. That’s always a must for every businessperson whether they run their shop alone or have a number of employees.
I’ve paraphrased the tips included in the Forbes list targeted at business people who would like to accelerate deductions in an effort to make Uncle Sam’s April bite a little less daunting. Here they are:
-Make fourth quarter state and local estimated tax payments by December 31 instead of waiting until mid-January when they are typically due. Doing so accelerates deductions of them from 2014 to 2013.
-Pay January 2014 office, shop or store rent by December 31.
-If you’d planned on making any charitable deductions in early 2014, make them now.
-Don’t forget to pay bonuses before December 31.
-Pay accrued expenses by year’s end and don’t over look expenses for things such as accounting and/or legal expenses.
-Take stock of your inventories and make a physical count of them by December 31.
“Adjust year-end quantities to actual, and make appropriate adjustments to spoilage, damage, obsolescence, etc. This tip applies to accrual as well as cash basis taxpayers.”
-Remember if a board of directors’ approval is necessary to contribute to non-qualified deferred compensations plans, get that done today. Or, certainly before December 31, 2013 and make contributions to them by that date as well.
-And don’t forget to make contributions to your own retirement plans.
That last point could in fact be the most important as it follows the very valuable financial tenet: “pay yourself first.”
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