In the video below, CNBC's Kate Rogers takes a look at the top issues for small businesses in the CNBC Small Business Survey, with 25 percent of owners saying they consider taxes most critical. For this post, we will defer the discussion about politics and focus on the percentage that are concerned about taxes.
Most small business owners we work with, also have concerns about taxes, more specifically, how to minimize the impact. While each business owners situation is different, there are strategies that could be applicable for your situation. For example, your business may be able buy machinery and equipment before year end and, under the generally applicable "half-year convention".
If your business is a corporation, it could consider accelerating or deferring income. If your business qualifies for the domestic production activities deduction for its 2017 tax year, consider whether the 50%-of-W-2 wages limitation on that deduction applies. (There are proposals by the CBO to Repeal the Deduction for Domestic Production Activities).
In addition, If you own an interest in a partnership or S corporation, consider whether you need to increase your basis in the entity so you can deduct a loss from it for this year.
These are just a fraction of the steps business owners can take to save taxes. By contacting us, we can work with you and your tax advisor to tailor a particular plan that will work for you.
*It is not our position to offer legal or tax advice.