Getting a head start on your taxes

Just in time for the fourth quarter, I read a press release today on PRWeb about a new tool that helps business owners identify strategies to save money on their tax returns.According to the Business Owner’s Toolkit, these tactics often include reducing your taxable income and tax rate, postponing income, and accelerating deductions.Here are a few things the site recommended:

  • Reduce Taxable Income. Find out if you can reduce your taxable income by purchasing health insurance, investing in your retirement, or providing perks like a company car through your business.
  • Postpone Income. Delay year-end billings until late enough in the year so that payments won’t come in until 2009. If operating your business as a C corporation, you can arrange for dividends to be paid after the end of the year.
  • Accelerate Deductions. Purchase equipment and other large ticket items in 2008. Consider expensing the cost of new equipment, rather than depreciating it. Prepaying deductible business expenses, including rent, interest, taxes, and insurance also increases deductions.
  • Be Prepared to Claim Tax Credits. Be aware of tax credits you might be eligible for and meet those deduction requirements in 2008. When they’re available, tax credits are generally better than deductions because credits are subtracted directly from the tax bill.

Check out the website, toolkit.com for more information. It looks like a great resource for business owners.

3 thoughts on “Getting a head start on your taxes

  1. Income Tax Information

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