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Business Tax Planning
You don’t want to spend your time reading
about business tax planning. That’s why we
are here for you. But it is important that you
have an understanding of the various tax choices
that your tax professionals may lay out for you.
Also, with a little knowledge on selected topics,
you'll be able to identify potential tax advantages -
and tax traps - in time to do something about them.
Wouldn't it be nice not to hear your tax professional
say, "I could have saved you a lot of money if you
had told me sooner that you were thinking about . . ."
Taking Control of Your Federal Income Taxes
In helping you take control of your federal income
taxes, our goal is to call your attention to those
income tax provisions most likely to affect a
business owner.
For starters, check out the key areas of business
tax planning we've listed below.
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Key Areas of Concern in Business Tax Planning
• The difference between permissible tax avoidance and impermissible tax evasion
• Selecting your form of business
• Defining your trade or business discusses so the IRS can distinguish between a
business operated for profit and a hobby operated for personal satisfaction
• Tax year and accounting methods
• Types of income that should be reported on your business tax return
• Business deductions as well as the rules on recordkeeping
• Tax treatment of automobiles that you or your employees drive for business purposes
• How to handle the purchase, use, and disposition of major business assets, from
a tax perspective
• Understanding the role that tax credits can play in minimizing your tax bill
• Defining your trade or business discusses so the IRS can distinguish between a
business operated for profit and a hobby operated for personal satisfaction
• Tax year and accounting methods
• Types of income that should be reported on your business tax return
• Business deductions as well as the rules on record keeping
• Tax treatment of automobiles that you or your employees drive for business purposes
The Basics of Business Tax Planning
Tax planning is a process of looking at various business tax options in order to determine when, whether, and how to conduct business and personal transactions so that taxes are eliminated or reduced. As an individual taxpayer, and as a business owner, you will often have the option of completing a taxable transaction by more than one method. The courts strongly back your right to choose the course of action that will result in the lowest legal tax liability. In other words, tax avoidance is entirely proper.
How a tax plan works. There are countless tax planning strategies available to a small business owner. Some are aimed at the owner's individual tax situation, some at the business itself. But regardless of how simple or how complex a tax strategy is, it will be based on structuring the transaction to accomplish one or more of these often overlapping goals:
• reducing the amount of taxable income
• reducing 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
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Sign in here to schedule
A COMPLIMENTARY
consultation with one of
our team members.
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