We are now in the fourth quarter of 2015, and it’s time to think about tax planning.
However, Congress hasn’t passed the tax extenders, which
are a part of our tax planning and strategies.
Several expired extenders include:
50% bonus depreciation, increase in expensing to $500,000 of Section 179
property, work opportunity credit, and research and experimentation credit.
In the meantime, small businesses owners should still
begin preparing for the end of the year. Tax strategies small business owners
should consider include below:
·
If you buy a heavy SUV, pickup, or van for your
business, you have the ability to write off up to $25,000 of the cost of a new
or used heavy SUV that is placed in service before the end of your business tax
year that began in 2015.
·
Determine if you can take advantage of the “de
minimis safe harbor election”.
·
Juggle income and deductible expenditures
through year-end if you are in a higher tax bracket this year.
·
If you’re eligible, utilize the cash method
accounting. It gives you the flexibility to manage 2015 and 2016 income to
minimize taxes over the two-year period.
·
Have a cost segregation study prepared.
·
Implement a cash balance pension plan.
·
Set up an IC-DISC, if you qualify.
Stay tuned as more develops in regards to business extenders.
As tax professionals, we would like to know if these tax planning
strategies will be extended early enough to make an impact in developing a tax
plan for our clients. However, review
where your business income is now and begin your roadmap to implementation of
your tax strategies. If you have
questions concerning tax planning for your business, contact your accounting
professional.
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