Even though the end of 2017 is near, it is not too
late to get your business into the best possible tax position for the new
year. Here are some year-end tax moves
to consider:
Consider vehicle purchases. There are several tax deductions available if
you own a vehicle for business use. General expenses can be tax-deductible,
including fuel, oil changes, general repairs and even new tires. Depreciation,
insurance and interest on a business car loan are also tax-deductible expenses.
While there are special limits to the amount that can be depreciated for most
vehicles each year, the benefits can often outweigh the costs
Update the office. A fresh coat of paint and new office
furnishings not only make your place of business more comfortable, they also
provide another tax deduction. How you handle deducting these expenses will
vary depending upon whether you own or lease your office space.
Reward your staff. If you have sufficient cash flow, giving your
staff a year-end bonus is a great way to let them know you appreciate them.
It's also tax-deductible.
Treat a client. If there are clients you haven't contacted in a
while, it's a good time of the year to take them out for a nice (not lavish)
breakfast or dinner and deduct 50 percent of the meal. Who knows, you may be
able to generate some new business while you collect a tax benefit.
Update your skills. Attend a workshop or conference to improve
your professional skills. While there are some limitations, many travel,
lodging and out-of-pocket expenses related to professional training are
tax-deductible.
Plan for the future. If you don't already have some type of retirement
plan for yourself and your employees in place, now may be a good time to set
one up. There are tax credits and other incentives available to employers who
start a retirement plan. Employer contributions to the plan are usually
tax-deductible. There are a variety of plans available depending upon the kind
of business you do, each with their own rules and regulations.
