From SCORE: Year-End Tax Planning for Your Business

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Editor’s Note: This post was originally posted in 2015 and was updated in December 2019.

It’s that time again for owners to think about taxes. It may not be the most enjoyable endeavor of the year but it’s certainly one that will put money in your pocket. The sooner you get started, the more opportunities you’ll have and the less stressed you’ll be. Here are some basic planning ideas that you can use now to improve your tax picture for the year.

Meet with your tax advisor

Don’t wait another minute to schedule a meeting with your tax advisor. With the 2014 tax-filing season over, tax advisors are ready now to share year-end planning strategies with you. Some possible actions are described below. However, it’s up to you, and your advisor, to tailor the actions to your situation.

Settle up projected taxes

Review your tax payments to date and the year-end strategies you use or plan to use so you can adjust the final installment of estimated taxes for 2015. Try to get as close as you can to the amount of your 2015 tax bill so you don’t overpay or underpay. If you overpay, you won’t recoup your money until you file your 2015 return. If you underpay, you may owe a penalty. The deadline for the fourth installment of estimated taxes for 2015 is:

  • December 15, 2015, for C corporations reporting on a calendar year.
  • January 15, 2016, for owners reporting business income on their personal returns.

Conclusion

In doing your year-end tax planning, monitor what Congress is doing. You may only have a short time to act, so stay alert.

[This is  from  SCORE’s webinar, “Year-End Tax Planning for Your Business”, by Barbara Weltman, Guest Presenter. View the webinar online here]