As 2018 comes to a close, there are many things we would rather use the remainder of our time with other thinking about taxes. But the changes you make now can help keep the cash flowing come tax season. Check out these tips to help your small business.
- Find out if your business qualifies for different treatment. The next time you meet with your tax specialist, check if your status is pass-through and if you can switch to C-corporation. New laws decrease income tax rates from 35 percent to 21 percent for all C-corporations, but be sure to ask an expert if the switch makes sense.
- Pay your taxes throughout the year. Ask your tax specialist if you can pay taxes at quarterly estimates in 2019 instead of in one lump sum.
- Think about retirement. Contributions you make to you or your employee’s plans can be tax deductible. Check with your specialist to see if opening a new retirement plan counts too.
- Buy some equipment. This includes both new and used, and equipment bought after September of this year can be listed with 100% depreciation.
- Defer revenue. Wait until the end of the month to do billing or wait to get some services until January. On the flip side, if you have events or things you need to buy in January, consider purchasing them early.
- Give to a charity. Tis the season for giving, so why not get two birds with one stone and not only give back to your community, but help make your taxes more manageable.
Hopefully 2018 has been a more prosperous year than the last, and gives you the problem to worry about what your taxes are going to look like. Regardless of your financial standings, these tax tips can help all businesses manage their bottom line.
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