Jeff Haywood, CPA

Posts Tagged ‘deadline’

Year End Tax Moves

Mr. CPA, What can I do to help with my tax situation for 2011?

Before the end of the year you want to look at your tax situation and make decisions and take actions to help with your taxes and your cash-flow.  Hopefully your business is doing well in 2011 and you want to minimize your income taxes for the year.  So first of all take a look at your income and expenses to get an idea how much profit you will have for the year.  You may to add into your calculation business miles and home office expenses.  If you have profits that you want to reduce to so as not to pay taxes on them for 2011 there are a few actions you can consider taking.

First, you can control when you receive and report income.  So if you are working on a job or finishing a job for a client you can wait to bill them in January.  If you are a cash basis taxpayer and you have already billed a client and you want that income in 2012 you can ask the client to wait to pay you until after the end of the year.  That is a call they will love to receive.

Second, you can pay bills before the end of the year.  As a cash basis taxpayer that wants to reduce 2011 income pay all outstanding bills before the end of the year.  You may even want to prepay expenses like rent.  For your personal return you can make sure you have paid your property taxes on your home.  In some cases, especially where you have no or a very small mortgage balance and hence very little interest expense to deduct, then you may want to plan your property tax payments so every other year you pay two years of real estate taxes so as to be able to itemize your deductions on your tax return.  How do you do this?  It is simple.  As an example you would pay your 2010 taxes on January 1, 2011 and then pay your 2011 taxes before December 31, 2011.  By doing this you take two years of real estate taxes in one year.  You can do this because the real estate taxes are deductible on your income tax return in the year you make the payment.

Now you also want to consider purchasing equipment for your business before the end of the year.  If you need equipment you may be able deduct the full purchase price of the equipment this year if you purchase the equipment before the end of the year.  Know that equipment you purchase using a credit card is potentially deductible when you charge it even though you do not payoff the credit card before the end of the year.  So you may be able to by equipment in December that you can deduct on your income tax return for this year and with some retail credit cards not pay for it for six months or so without paying any interest.  Keep in mind that your interest on your business credit card is also deductible.  Finally, know that there are limits as to how much you can deduct in a year for equipment purchases.  Check with your CPA or call me to discuss your situation.

Many taxpayers are not aware of these strategies.  Your CPA should bring these to your attention and you should be having a year-end discussion every year.  These discussions help you to get an idea or an expectation of what your taxes will be when you file your tax returns.  A big tax bill is difficult enough but it is worse when you are not expecting it.  So let’s have a conversation today about your situation.  Feel free to use my contact information below to set an appointment for that discussion.

Know too that you may be able to reduce your taxable income by making a contribution to your retirement account.  If you use an IRA you have until April 15th to make that contribution and use it to reduce your taxable income this year.

Please do not keep me as a secret.  Please tell others about me and this site.  I keep my practice at a manageable size so all my clients get the attention they need for their business and their personal income tax situations.  I specialize in helping business owners and investors and also expatriates living out of the country.  I also do individual tax returns.  Please contact me today using the contact information below to make an appointment to discuss your situation.

Jeff Haywood, CPA
972-439-1955
jeff.jhtaxes@gmail.com

I prepare the following types of tax returns:

Personal
Business
Estates
Trusts
Federal and State Returns

I especially enjoy discussions about you, your business, your dreams and goals.

Take a look at these related posts:

Let’s Accomplish Great Things Together
How to Profit From Your CPA
A Most Valuable Resource For Entrepreneurs
Forming a New Business – Please Consult With Your CPA First

Click Here to Follow Jeff Haywood, CPA on Twitter
Also, Click Here to Follow My Twitter Account: Taxesforxpats

In addition here are links to a few of my articles about income taxes for expatriates:

Income Tax Returns for Expatriates
US Income Tax Help for Expatriates
Foreign Earned Income Exclusion
Are You Required to Report Foreign Bank and Financial Accounts?

Click Here to Follow My Twitter Account: Taxesforxpats

 For recent US income tax content see the following links:

Sometimes Money Costs Too Much
Let’s Accomplish Great Things Together
Can I Use My Loss To Get Money Back From Prior Year Taxes Paid?
IRS Top Ten: Tax Tips for Individuals Who Are Moving This Summer
IRS Top Ten: Tax Tips for Individuals Selling Their Home
IRS Tax Tips: Do You Owe the IRS Money? What You Need to Know.
IRS Tax Tips: Do You Owe the IRS Money? What You Need to Know.
Does the IRS Have Money Waiting For You
Ideas: How Young People Can Become Entrepreneurs and Find a Home
IRS Top Ten: Facts about Amending Your Tax Return
Are You Ready To Get Your First Apartment/Home?
How to Succeed in Business: Pricing
Credit for Education Expenses: American Opportunity Credit – Extended Through 2012
How to Prepare Before a Disaster Strikes
IRS: Summer Day Camp Expenses May Qualify for a Tax Credit
IRS Tax Tips for Students Starting a Summer Job
IRS Tax Tips for Deducting Charitable Contributions
Tax Planning Tips
Tax Tips – Tip Income
Stratospheric Success
Are You Ready to Purchase a Home? Factors to Consider.
Foreign Earned Income Exclusion
A Most Valuable Resource for Entrepreneurs
How to Profit From Your CPA
Begin With The End In Mind
If the band you are in starts playing different tunes
Where Is It? Tax Refund
Deadline for 2010 Personal Tax Returns Moved
Now is the time to file those late tax returns for previous years
IRS: 8 Things to Know if You Receive an IRS Notice
IRS: Nine Fact on Filing an Amended Return
IRS: Eight Facts on Penalties
IRS Top Ten: Making Federal Tax Payments
Forming a New Business – Please Consult With Your CPA First
Questions After I Have Filed My Return

For a full list of prior posts see the CPA Tax Blog.

Standard Disclaimer:

As always keep in mind that the content provided on this site is general in nature and may or may not apply to your particular case. It is best to check with a tax professional about your circumstances and what is best for you personally. Also, IRS regulations and tax laws are constantly changing and the information on this site is not constantly updated. Again please check with me about your particular circumstances and what will be best in your situation at the given time and law.

Comments:

If you have a comment to share about this post or for me, please email me at jeff.jhtaxes@gmail.com.

This article was written by Jeff Haywood, CPA.
Jeff is a licensed CPA in both Texas and Illinois.
He has prepared income tax returns for the public for over 10 years.
He also has an MBA in Finance from Loyola University in Chicago and he has 24 years experience in Corporate Finance and Business Analysis.

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Deadline for personal tax returns moved…

procrastinate – postpone or delay needlessly;

Now you can procrastinate if want but why.  Let’s get that return done so the idea that it has yet to be completed is not banging around in your brain like a Centaurian slug.  If you owe let’s find out and make a plan to pay it and move on.  Some think that leaving things incomplete has a negative impact on your ability to be produce and or create.   So we are talking about your health and ability to make a contribution and feel a sense of accomplishment.  In addition it is strange if you are needlessly delaying because you are afraid you might owe money when if you submit your information to your tax professional at the last minute you have to know he will charge you more money.  So let’s save you some money and free you of emotional baggage created by procrastination and get that return done now.  Call me at 972-439-1955 to discuss your situation and how you can get your tax information to me.  Don’t worry you have some nice options about how to get your information to me as long as you have a computer, fax, or access to a post office.

Mr. CPA,

Before you conclude why were you so snarky in this post?  Well I do not know if snarky is the correct word but I have wanted to use it since I heard it used on the TV show Psych.  In additional after the adrenaline from a long tax season wears off a little snarkiness and a bunch of creativity or insanity sets in.  I will let you judge which applies in this case.  In either case I may have just coined a new word – something else I wanted to do.  Oh and try this Psychism – “I’ve heard it both ways.”  Either way let’s move on and be productive.

Now, stop changing the subject and call or email me today about getting your return done.

Click Here to Follow Jeff Haywood, CPA on Twitter

Jeff Haywood, CPA

972-439-1955

jeff.jhtaxes@gmail.com

I prepare the following types of tax returns:

Personal
Business
Estates
Trusts
Federal and State Returns

Also, I am available for tax planning and discussions about business, retirement planning and life goals.

For recent US income tax content see the following links:

Begin With The End In Mind
If the band you are in starts playing different tunes
Where Is It? Tax Refund
Deadline for 2010 Personal Tax Returns Moved
Now is the time to file those late tax returns for previous years
IRS: 8 Things to Know if You Receive an IRS Notice
IRS: Nine Fact on Filing an Amended Return
IRS: Eight Facts on Penalties
IRS Top Ten: Making Federal Tax Payments
Forming a New Business – Please Consult With Your CPA First
Questions After I Have Filed My Return

For a full list of prior posts see the CPA Tax Blog.

Standard Disclaimer:

As always keep in mind that the content provided on this site is general in nature and may or may not apply to your particular case. It is best to check with a tax professional about your circumstances and what is best for you personally. Also, IRS regulations and tax laws are constantly changing and the information on this site is not constantly updated. Again please check with me about your particular circumstances and what will be best in your situation at the given time and law.

This article was written by Jeff Haywood, CPA.
Jeff is a licensed CPA in both Texas and Illinois.
He has prepared income tax returns for the public for over 10 years.
He also has an MBA in Finance from Loyola University in Chicago and he has 24 years experience in Corporate Finance and Business Analysis.

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