The more expenses you manage to get into your tax year, the lower your taxable income will be.  After researching small businesses and pulling strategies from my existing client base, here are the top 7 items that you can do right now to help you this year.

1.  Stock up on demos or displays - Demo sets, display items or anything you use for your business is 100% tax deductible as a necessary business expense.  If you need any additional demo or display sets, purchase them before the end of the year to receive a tax deduction this year.  However, according to the IRS they must be IN USE by the end of the year to be included in the current year deductions. 

2.  Stock up on office supplies - Think ahead and purchase enough supplies to last a while.  You're going to use them anyway.

3.  Purchase any equipment you need - Now may be the time to purchase that new printer or that new desk.  With your Section 179 deduction you can write off the entire amount in the year you purchase it instead of depreciating it over several years.  Make sure you put it IN USE by the end of the year to receive the deduction.

4.  Donate to charity - Donating to charity can help you in more ways than one.  Not only wil you help the needy, but you may be able to significantly decrease your taxable income as well.  If you're like most people, you have a closet full of tax deductions that you don't wear anymore!

5.  Take a business trip at the end of the year

6.  Pay your kids to work for you - Yes, you can deduct what you pay your kids.  And, they won't have to pay federal income taxes on it if the amount is less that $3,500 for the year.

7.  Pay your bills early - By paying your bills before the end of the year you'll likely be able to deduct the expenses this year.

Tim Yeager CPA, PLLC
Chesapeake, VA
(757) 434-3089
FAX (757) 337-2812
tim@yeagercpa.com