Preparing for the Upcoming Tax Season: How to Reduce Your Taxable Income

We’re in the final week of 2010, it is now time for you as an entrepreneur or small business owner to start preparing for the upcoming tax season!  One step to take in preparing is to think about ways for you to reduce your taxable income in an effort to pay less taxes as possible on your business income .  In an article that I wrote for on Get Ahead of the Game: Prepare For Year End Now I shared with readers a few year end tax planning strategies. One important aspect I discussed was what entrepreneurs can do now to legally reduce their tax liability. Some of my recommendations included to consider donating to your favorite charity before December 31st or if you have enough cash on hand consider paying some bills early or giving your employees a bonus before December 31st. The idea is to reduce the bottom line (often referred to as net income or net profit) thus reducing your tax liability.

I love to hear what other business owners do to save money at tax time. Nicole Dean of nicole on the provided a really great illustration and tips on ways to reduce your taxable income. She interviewed a panel of experts who were generous enough to share what has worked for them.

Share your thoughts – what tax planning strategies have worked for your business in saving you time and money?

Note: Remember before starting any tax planning strategy always consult with your CPA or a certified tax professional.

Get in the Know Tip: Set up time to speak with your CPA this week about your year end financials and for tax planning advice!  It’s not too late to get an early start on the upcoming tax season!

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Posted on by admin in Business Finance Advice

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