4 Business Tax Tips for the Fourth Quarter


As we near the year’s end, major changes in legislation and tax rates are being proposed and put into effect. Now is the time to re-strategize and plan to optimize your tax savings before the end of the year. Here are some quick tips to help you get started.

Tip #1: Establish or review your business retirement plans.

Establishing a small business retirement plan is a no-brainer for those who want to optimize their tax savings and feel secure for the future. There are various options, depending on your business size and future goals. If there have been any major changes in your small business this year, it’s a good idea to review your current plan to ensure it is fit for next year’s plans and saving. Some small business retirement plan options that we can assist you with include SEP IRA, 401(k), pension plan options, and various employee benefit plans.

Tip #2: If you’ve planned to make charitable contributions, do it before the year ends.

This way, you’ll make the most of your itemized deductions. Some bonus tips:

  • Employers sometimes match charitable donations, with a typical deadline of December 31.
  • Donate up to $100,000 from your IRA plan to a qualified nonprofit as a qualified charitable distribution (these distributions don’t come with the typical tax consequences of other IRA distributions.)

Tip #3: Review your estate plan.

Changes in federal or state gift and estate tax exemptions could affect your estate plans significantly. Additionally, if you’ve had major life changes this year, it’s important to ensure that your overall estate plan (including trusts, power of attorney, health care, and asset protection) is current. Events that could affect what you want out of your estate plan, and might necessitate adjustments include:

  • Divorce
  • Birth of a child
  • Purchase of a home
  • Business changes
  • Sale or purchase of property
  • Move to a different state

Tip #4: Don’t wait until you’re struggling or underwater to contact your accountant.

Make the most of your accountant’s expertise while you’re still planning things out. This way, you can make strategic decisions that will pay off in the long run. Here’s a list of what our seasoned certified accountants can provide to you:

  • International tax help
  • Business tax preparation
  • Non-profit tax preparation
  • E-filing for quicker tax returns
  • Accounting and bookkeeping
  • IRS problem resolution
  • Retirement planning

Click here to discover how we can create an individualized plan for your specific needs.