In business, every action has a tax-related reaction. From income to payroll to capital gains—if you’re growing your business, you’re incurring a tax liability.
With three quarters of the year completed, now is the time to put many tax planning strategies to work so that you can realize the benefits on your 2015 return—ever try to put toothpaste back in the tube—same as trying to effectively implement a tax move after December 31st.
Minimizing taxable income has become even more important in light of the following: higher top tax rates, as well as the potential for a higher Medicare tax on wages, a tax on investment income, and increased dividend and capital gain tax rates.
At SPM & Co, our tax consultant go beyond identifying industry-specific tax incentives like the domestic production activities deduction (DPAD) or the research and development (R&D) tax credit. We help you look several steps ahead and predict the tax implications of each potential choice. We take the time to truly understand your business, balancing your need for healthy financial statements with your desire for tax minimization. Through our analysis we will provide you with multiple options that will put you on the path to achieving your goals, considering risk and reward at every level. In addition, tax planning and the resulting efficiency created increases cash flow giving you the ability to better manage your business.
There are many excellent planning opportunities for companies that want to reduce their tax outlay and minimize their compliance burdens in the future—such as:
• Income & Expense Review & Evaluation
o To include: Splitting income among several family members or legal entities in order to get more of the income taxed in lower brackets; shifting income or expenses from one year to another in order to have them fall where it will be taxed at a lower rate; and finding tax deductions by structuring your money to pay for things you enjoy.
• Make the Most of Retirement Plan Opportunities to Lower Taxes
o By deferring tax liabilities through investment choices such as pension plans, contributions and other similar plans—which is right for you and your business?
• Selecting the most appropriate entity type
o Are you organized appropriately to achieve your goals and best tax efficiency?
• Considering business acquisitions and other capital investments
o Do opportunities exist to expand? What does your business need to grow and thrive?
• Address New Uncertainty About Expired Tax Benefits
• Reap the Benefits of Going Green
• Plan for the Alternative Minimum Tax (AMT)
• Prepare for the Next Rounds of Affordable Care Act Implementation
• Plan for New Regulations That Will Affect Your Business
Although there has not been a great deal of major new tax legislation this year, the uncertainty surrounding expired tax breaks, new reporting rules and growing challenges to minimize taxes make it important to act now. Now is the time to discuss your tax outlook and develop a customized approach designed to address your business’s unique financial concerns.
Call our office to set up your year-end tax season review.