*Written by Steven Resuta, as published on LinkedIn
Hello everyone,
Sunday, September 1st marks the beginning of tax planning season. While most people are familiar with tax season, tax planning season can be even more crucial. Both individuals and small businesses can greatly benefit from a well-thought-out tax plan. Although many tax-saving strategies can be utilized during tax season with the help of an experienced accountant, even greater savings can be achieved by starting early, especially after September 1st.
For small businesses, nearly three-quarters of the year have passed by this time, and your profit patterns are usually well established. This makes it easier to implement strategies like purchasing equipment, computers, software, or other assets that can help you save on taxes and increase profits. Planning ahead allows you to make informed decisions rather than reactionary ones at the end of the year.
While some moves can still be made at the end of the year, it may be challenging to complete both the financing and acquisition of large equipment purchases. Under current tax laws, you must not only buy the equipment but also put it into use. Starting in September gives you time to ask important questions like, “Can I still finance my equipment and get the full first-year write-off?” The answer is yes, you can still finance equipment and get a first-year write-off. Without early planning, it may be difficult to secure the proper loans and ensure that the equipment is placed in service.
With today’s supply chain delays, anything you plan to purchase may not be in stock, or additional attachments you need may not be available. Planning ahead allows you to figure out your cash flow and ensure you can afford the payments. Remember my motto: save taxes and increase profits. Think of it like a scale—you don’t want to buy assets, trucks, or anything else just to save on taxes if they won’t make you more profits in the long run.
Now is the time to call your accountant and set up a tax planning appointment. If you would like to discuss tax planning for your own business and you live in the Central PA area, I would be happy to discuss these issues with you.
Let’s make tax planning season as famous as tax season. Start on September 1st and think about all the savings that can happen if you start planning now. It’s hard to plan if you never start a plan. Simply winging large purchases makes it very difficult, and you may make a rash decision that doesn’t fit your cash flow and future profit needs. Happy tax planning season and may your tax season benefit from any decisions you make after September 1st that yield significant benefits.
Kommentare