Business owners using the accrual method also have some specific
tax-saving steps they can follow. Review your accounts receivable
if you are an accrual taxpayer to see if anything is partially
worthless. If it is, you can take a deduction for a portion of the
amount of the uncollected debt. Check with your accountant to
determine whether you meet IRS requirements to claim a bad-debt
deduction. Also scrutinize your inventory for obsolete items. If
you dispose of the inventory or sell it below cost by the end of
this year, you can receive a deduction.
Another strategy for businesses using the accrual method is to
delay shipping products or providing services until the beginning
of your 2003 tax year.
Source: "Get
Your Tax Straight"
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