Tax Tip of the Week | No. 226 | Year End Tax Planning

Tax Tip of the Week | November 27, 2013 | No. 226 | Year End Tax Planning 

This is the time of year in our CPA practice that we work with small business owners and individuals to perform tax checkups to help them project their tax liabilities for 2013 and make tax saving recommendations of moves that they can make between now and year-end. Frequently, just defining the amount of taxes they owe via these planning services helps manage their cash flow so the businesses and individuals don’t have a big amount due and/or surprise each spring when we prepare their tax returns.For the business owner and individuals, one of the largest expenses can be taxes.  For this reason alone, this expenditure requires planning and monitoring as any other major expense.  A year end planning meeting with your CPA should include a discussion of:•any assets purchased during the year•anticipated year-end revenues and expenses•plans for current year retirement funding•any refinancing of debt that occurred in the current year•any changes to your business structureThis planning meeting should prepare the business owner or individuals to anticipate the amount of taxes that will be owed on March 15th (or April 15th if the tax burden flows through to the personal return).  To be effective, tax planning needs to be done prior to New Year’s Eve.You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.Rick Prewitt - the guy behind TTW

...until next week.