Tax Tips for Wrapping up 2017
One of the best ways you can maximize your tax refund is to be proactive about tax planning before the end of the year. That means that now is the perfect time for you to tie up loose ends and take the necessary steps to make the most of your 2017 tax return. Karen Stern, Partner in Charge, Entrepreneurial Services Group, covers some key tips for year-end tax planning for your business in this month’s “Financial Fitness” column, as featured in Small Business Monthly.
Here are a few tips to make the rest of 2017 count for your business’s bottom line:
- Defer income: Income is taxed in the year it is received, so by deferring billings until late December, you could ensure you won’t receive payment until 2018.
- Increase expenses: Any items your business will require in the immediate future should be purchased this year to maximize deductions. Plan out what you’ll need for the first quarter, and see if those goods or services can be purchased now.
- Last minute tax deductions: Making a charitable contribution around the holiday season is a great way to give back, and it’s also a great way to earn a deduction. Just make sure you have a receipt, regardless of the amount. Certain contributions also qualify for Missouri Tax Credits.
- Loss harvesting: Selling investments to realize losses allows you to then offset any taxable gains you have realized during the year.
- Contribute to retirement accounts: Increase your 401(k) contributions so you are investing the maximum amount allowed ($18,000 for 2017, $24,000 if you are age 50 or over).
No matter your year-end tax strategy, just make sure you have a plan in place to ensure a smooth 2018 tax season. If you have any questions about your tax plan, check in with your tax advisor.