11th Hour Tax-Saving Tips, Part 3
Here are five ways to save on your taxes. Number 3? Practice profit management.
Delay income and accelerate tax-deductible expenses to reduce your business's current-year taxable net income. If your business is expected to have significant billings to customers at or near year-end, you may want to delay these billings to reduce the current year's income. Also, you can accelerate expenses into the current tax year to maximize the current year's tax-deductible expenses. Expenses that can be accelerated include, but are not limited to, the following: year-end employee bonuses, corporate charitable contributions, 60 percent of health insurance premiums for you as a self-employed individual, any qualified educational assistance expenses (up to the limit) or any other tax-deductible expenses you're planning on making.
SOURCE: Ask the Experts