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5 year-end tax strategies for your small business

It’s that time of year to start thinking about your 2011 taxes and what moves you might be able to make to save in taxes! Here are 5 ways to cut your 2011 business taxes: 1. Equipment Deductions – The legislation enacted at the end of 2010 already provides a very generous write-off for business owners in 2011. Buy your new equipment and place it in service before 2012. You can combine an enhanced Section 179 deduction with “bonus depreciation”. For 2011, the maximum deduction for qualified equipment is a staggering $500,000 and does not phase out until $2,000,000. The bonus depreciation for the equipment, which was previously 50%, increases to 100% for qualified assets acquired and placed in service before the end of 2012. Since it is expected that these two breaks will be downsized in 2012, take advantage of this tax break before 2011 is over! 2. Bad Debts – Most business owners have the most trouble collecting ...

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Consequences of Unfiled Taxes and What to Do Now

Despite common belief, filing unfiled tax returns regardless of how many years have passed is not as scary as it may sound. Do not be deterred from doing so even if you do not currently have the funds to pay for the taxes. In fact, not filing your taxes at all can often have greater penalties and be more detrimental to your financial situation than being unable to pay. Ultimately, the faster you file your taxes the better. In this case the phrase, ‘better now than never,’ could not reign more true. Penalties for Unfiled Tax Returns While many people avoid filing their tax returns because they are unable to fulfill the payments, the penalties and added fees are far worse for not filing at all versus being unable to pay. In best case scenarios, you may even be due a refund without realizing. Keep in mind, the IRS will no longer honor this after a certain period of time. ...

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