- Income tax, payroll tax or sales tax penalties.
- Lack of tax planning.
- Paying too much in taxes.
Steps to Improve:
- Schedule a year-end tax planning session with your CPA.
- Plan the timing of your business decisions for tax benefit.
- Plan record keeping to preserve worthwhile tax deductions.
- Reconsider your form of business and the tax implications of it.
- Become a S-Corporation.
- Consider your policy writing off capital items.
- Plan to maximize deductions for business car use.
- Plan to maximize use of children where legitimate tax advantages exist.
- Plan to cover spouse’s cost on business trips.
- Cash in on tax advantaged employee benefits.
- Plan to maximize use of home office deduction.
- Recapture estimated income tax overpayments.
- Recover past tax overpayments by carrying back this year’s loss.
- Plan to maximize use available capital losses.
- Plan to maximize use of investment tax credits.
- Plan to use multiple corporations where tax and business advantages exist.
- Plan to maximize use of start-up costs.