YEAR-END TAX STRATEGIES FOR BUSINESS OWNERS

Here are five activities that businesses can perform at the end of the calendar-year to reduce their annual tax bills.
  1. Major repairs to equipment or facilities can be moved up to increase the current year's expenses.
  2. Delaying the closing of year-end sales reduces the year's income.
  3. Bad debts are deductible from the profits of a business for the year the debt is discovered to be unrecoverable if accurate records are kept of collection attempts.
  4. Year-end bonuses can also be deducted as long as they are paid within 2 1/2 months after the close of the company's tax year.
  5. Inventory affects net profit and can be reduced by eliminating items that can not be sold and by devaluing items that are shopworn, such as display/demonstration equipment.


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