900 N. Kings Highway, Cherry Hill, New Jersey 08034
856.667.4100 · 215.563.0276 · Fax: 856.667.3652

Business Tip of the Month

Business Tip
of the Month
For the month of November 2006

Give your business a year-end tune-up

Have you given your business a tax tune-up lately? Congress has passed a number of new tax and pension rules in recent months. A visit to your tax advisor could reassure you that you’re taking full advantage of the tax laws. And if you act quickly, you might still have time to reduce your tax bill for 2006.

Start by reviewing your business results for the year to date. Then look at specific areas relevant to your particular business. Be sure to include the following.

Equipment purchases. Look into the “Section 179” rule that allows you to take an immediate tax deduction for most purchases of business furniture and equipment. By deducting the full cost immediately instead of depreciating it over several years you’ll cut this year’s tax bill. For 2006, you can deduct up to $108,000 of qualifying purchases, subject to limits. Special rules apply in Gulf Opportunity Zones. First make sure you’re taking maximum advantage of this year’s allowance. Then, because Congress recently extended the higher deduction through 2009, develop a multi-year spending plan to maximize your tax deductions.

Retirement plans. Congress recently passed a new pension law. This made permanent many current features of business and personal retirement accounts. These include higher contribution and deductible amounts and recent innovations such as Roth 401(k) plans. Discuss the type of plan that’s best suited for your business. If it’s too late to change for this year, you can get a head start for 2007. At a minimum, make sure you’re maximizing savings under your current plan.

Securities offered through 1st Global Capital Corp., Member FINRA, SIPC

Income management. Discuss ways to adjust taxable earnings for the year, perhaps by accelerating expenses or delaying income around year-end. For example, you could boost 2006 deductions by declaring and paying bonuses in December rather than in early January. If you’re a cash-basis taxpayer, you may be able to defer invoicing or make early purchases to reduce your 2006 tax bill.

Form of business. As your business grows, it’s always good to make sure you’re using the most appropriate form of business – whether it’s sole proprietor, S or C corporation, LLC, or partnership.

Other areas. Look for other tax breaks, such as specialized tax credits, that you might not know about or be using to full advantage.

Don’t delay. You have only a few weeks to implement any tax-saving ideas. If we can help, please contact our office.

[Current Business Tip] [Business Information] [Home]

   
  untitled

This site designed and maintained by the Information Technology experts at Alloy, Silverstein, Shapiro, Adams, Mulford, Cicalese, Wilson & Co.

We appreciate comments concerning our website. Contact our webmaster .