As a Maine-based small business owner, it’s important to plan all year long to make the most of the tax law. Here are just five of the tax-smart decisions to make during the year that could, if handled properly, significantly reduce tax liability:
- Should vehicles, equipment, and buildings be purchased or leased?
- If a major business purchase was going to be made toward the end of the year, would it be better to wait until after the first of the next year?
- Which vehicles provide the best tax breaks? The purchase or lease of an SVU could provide some tax relief.
- If the business vehicle is also going to be for personal use, should the company own the car?
- Sometimes it is beneficial to pre-pay certain business expenses in December, such as rent or mortgage payments. It also could be a good idea to load up on supplies and equipment. Or it may be better in to wait until next year to incur these expenses.
Every month, small business owners make decisions that can affect taxes they pay for the year. Filler & Associates can help navigate these decisions, both throughout the year and when it’s time to prepare business tax returns.