The year is nearly over, but you can still take action to reduce your 2016 taxes. Here are 5 year-end tax savers for businesses to consider:
Boost your Retirement Account
A retirement account is a wise place to put your money, because it’s just that: your money. The more money you can place into a retirement fund now, the better your tax savings will be.
Plan Ahead with a Health Savings Account
You can put money into a Health Savings Account to spend later on medical bills and out-of-pocket expenses. This can help with high deductibles, areas that aren’t always covered by health insurance, like vision or dental, or even retirement expenses. Unlike Flexible Spending Accounts, HSA savings don’t have to be used by a certain date. If you have an HSA available to you, use it.
Buy Now, Save Later
Putting money back into your business is a smart move if you use it wisely. Take stock of any equipment or vehicles that will help your next year be more profitable: if making a big purchase is prudent and responsible, why wait till next year? Make sure that what you are planning to purchase is tax-deductible. Large investment purchases like new computers, new equipment, or even a company vehicle can help take a bite out of your year-end taxes.
Pre-pay for Next Year
If this year was particularly profitable, or you predict that next year will look a lot different, it may be beneficial to pre-pay your expenses for January, or even pay your state business tax if that applies to your situation. Taking care of expenses before you need to can reduce this year’s taxes and help if things get tighter in the future.
Give Yourself a Bonus
If your business is set up as an S Corporation, giving yourself a bonus that is equal to your net profit can eliminate the 8.5% New Hampshire business profits tax. Unlike larger corporations, S Corporations are taxed through their shareholders, not through the corporation itself. There are several ways for S Corps to make this work in their favor when tax season rolls around.
Tax Help in NH and MA
No one likes tax season. There’s always the fear of missing something, filing the wrong paperwork, and paying more than you should. Don’t go it alone. Get the insight, experience, and perspective you need from the friendly and professional tax experts at TSLNH.
We’re here to help both businesses and individuals manage their taxes and get the refunds they deserve. Contact us today to learn how we can save you money this tax season and reduce the burdensome chores that come along with it.
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