Doing the following will lessen your 2008 tax liability. Whenever conditions exists were taxes will be going down in up coming years, it is better to accelerate your expenses and postpone income until the next year. If you are on a fiscal year this would be the month that is your year end. In both cases the fallowing will save you.
1. If you are a sole proprietor pay your minor children for their services in your business before the end of the year, even for wages that you owe them and have not yet paid them for. A minor working for a parent can earn $7850.00 tax free! Ask us how to do this and save money.
2. If you are planning to purchase equipment for your business in the next few months, buy it now and deduct the first $75000.00 as 179 depreciation and accelerate any remaining depreciation allowed. Ask us how to do this and save money.
3. If you do not have a pension plan in place do it before the end of the year and save money. Ask us how.
4. Pay your State Estimated tax before the end of the year. If you itemize your deductions this will become a deduction and you will receive a refund of any amount over paid. You can even do this if you are an employee by asking your employer to withhold more state tax. Ask us how to do this and save money.
5. Charge the maximum allowed for any business travel with your auto or truck. This can save you and your employer taxes and workers comp expense. Ask us how to do this and save money.
6. Put $500000.00 Tax free money in your pocket every two years totally above board. Ask us how to do this and save money.
7. Structure your business to pay the least amount of taxes legally possible for you and your business. In addition protecting yourself and your home from liabilities. Ask us how to do this and save money and maybe your home!
8. Give bonuses at the end of the year. If you give wage bones before the end of the year (12/31) then they are the least expensive for payroll taxes. I addition you can give Safety and Longevity bonuses that can be tax free! Ask us how to do this and save money!
9. Trade wages for reimbursable expenses and save payroll taxes and workers comp. expense. This is a good policy for both employee and employer. There are many exchanges that can be made in this area that will save both a lot of money. Ask us how to do this and save money!
10. Pay that last paycheck before the end of the year! This will be like a bonus to your employees and will save payroll taxes and income taxes for your company. Ask us how and why to do this and save money!
SDI as of Jan. 1st 2009: 1.1% so get that extra pay day by the end of the year! If you have questions about this call us!
951-849-9112 Cell: 951-840-5832