Tax Tips and News

• COBRA BENEFITS NEW FOR 2009
  The employer is reimbursed for the 65% of the premium that is not paid by the employee! Let us review your 941s!
• DO YOU RUN A BUSINESS OUT OF YOUR HOME?
  Your home office may be tax deductible!
• TRAVEL AND EXPENSE RECORDS
  The IRS will consider your travel and expense log or diary a valid record - even if you don't have all of your receipts.
• 5 YEAR-END SMALL BUSINESS TAX TIPS
1. Update Your Accounting: It's important as part of your year-end tax strategy to have a good understanding of your company's financial situation. Spend extra time ensuring your books are up-to-date and accurate. It won't hurt to plan time with your accountant for year-end advice, particular to your operations.
2. Defer Income: Any payments your company can receive during the first week of January as opposed to December cuts your tax bill. Every cent deferred until January 2010 will not owe taxes until April 2011. Any deferral strategy will depend on your profit and losses for the year and business legal structure (LLC, partnership, corporation, etc.)
   
   Depending on your income tax rates in the foreseeable new year, deferral of income can make the best sense for many sole proprietors, partnerships, LLC's, and S corporations. Ensure your cash flow can handle the deferred income. Don't forget to push any early 2010 charitable donations back to 2009. Make sure you get a receipt for the tax deduction.
3. Increase Expenses: Purchase items your business will require in the immediate future to maximize deductions for this year. If you can see a need for goods and services in the first quarter of the new year, buy them now, if cash flow permits.
4. Inventory Write-Offs: Depending on your accounting methods, you may wish to check inventory for goods that have been damaged or have become obsolete. The drop in market value of the inventory can provide your company with added deductions.
5. Contribute to a Retirement Plan: Make payments to your retirement plan or set one up before the year-end to reduce your income for this year. Check the contribution limits for your type of plan.