If you want business tax planning learn even more beyond these tax planning tips from Hanley, we have an entire library of educational content dedicated to dealing with your business taxes. Decide if aggressive year-end tax strategies are right for you.
Not everyone should be putting an aggressive year-end business tax strategy into place. Don’t spend money that you wouldn’t ordinarily spend just to reduce your tax bill. You may not want to accelerate expenses into the current year. For example, if you had a pretty bad year with a lower-than-average profit and expect your profit to pick back up in the following year, you may want to defer as many expenses into the following year as possible. Make sure you know whether you file your tax return on the accrual basis or the cash basis. Most year-end tax strategies only work for cash-basis taxpayers.