Now is the time of year to ensure that you are taking steps to minimize your 2015 tax liability. Taxpayers who review their financial situations before year end have many more tax-reduction strategies at their disposal than those who wait until after the start of the tax filing season.
Here are just five of the tax strategy decisions we can help your company make. If handled properly, they might significantly reduce your tax liability:
- Should you buy or lease vehicles, equipment, or buildings?
- If you’re going to make a major purchase toward the end of 2015, would it be better to wait until after January 1, 2016?
- Which vehicles provide the best tax breaks? Should you buy an SUV? Do all SUVs qualify for favorable tax breaks?
- If you buy a vehicle for personal and business use, should your company own it?
- Should you pre-pay expenses in December, including rent or mortgage payments? Should you load up on supplies and equipment this year? Or would it be better in your situation to wait until 2016 to incur these expenses?
Of course, there are many other ways to help you reduce your taxes, and not all of them are available or appropriate for everyone. While it is important to reduce your tax burden, moves made primarily for tax reasons may not be in your overall best interest. It is important to remain focused on your long-term strategies. For example, taxable investments may earn a better return than tax-free investments even after taxes, and some tax strategies may have a negative effect on other aspects of your financial picture.
Planning for year-end tax savings can get complicated! Why not get the guidance of a KRS CPAs tax professional? We can help you determine which tax strategies are appropriate for your firm, and prepare your business and personal tax returns to take advantage of every tax break that works for you. Contact us today to get started.