Yes, I survived the 10/17/11 personal extension deadline. Barely! I, like most CPAs, hate this deadline. We are dealing with the clients who have bad records, don’t plan, are surprised that they owe taxes, and complain about how we must have missed something. (Obviously, I'm not talking about any of my clients!)
I tell them all the same thing: “After the first of the year, we write history, not fiction.”
Now we are entering a time most CPAs enjoy – Tax planning season!
This is the time when smart business owners work to reduce their taxes for 2012. No surprise that the business owners who hire me to help them reduce their taxes are the same business owners who are expanding, even during this economic downturn. They try not to be surprised by anything in their busines,s and they understand that income tax is an expense that can be controlled just like any other cost.
I just recently finished initial tax planning for two of my clients. Together, we identified legal ways to cut their taxes by over 60 percent (Savings of $108,000 for one and $124,749 for the other). If you are in business, you should be tax planning. Yeah, you might only cut your bill by a few thousand dollars. But if you are like me, you can think of a few things your business or your family could use the savings for.
Tax planning starts by projecting your income to the end of the year and then exploring different tax strategies, loopholes, and opportunities that are available to you. This can be intense and time-consuming if you have a large business. So call your tax preparer for help.
I will be sending out a year-end tax savings tip each day from now to the end of the year. Sign up for these daily tax planning emails by going to www.wjb-cpa.com and entering your email address in the box in the upper right-hand corner. I will also be posting these to my Facebook business page, LinkedIn account, and Twitter account. So search for me there.
Finally, I have only a few tax planning spots available. Email or call so I can discuss with you if this is something that will help you and your business cut your taxes.
Like any good CPA, I need to add a disclaimer: Unfortunately, it is impossible to offer comprehensive tax info over the Internet, no matter how well researched or written. And remember, I love my readers but having me bookmarked on your computer doesn’t make you a client: before relying on any information given on this site, contact a tax professional to discuss your particular situation.