As a Maine-based small business owners know that they need to be mindful of the tax implications of any decision they make, regardless of the time of year. Here are just five of the tax-smart decisions to make during the year that could significantly reduce tax liability if handled properly:
- If the small business needs new vehicles, equipment or buildings, should they be bought or leased?
- Is it better to wait until after the first of next year to make a major purchase?
- If looking for a new vehicle, which ones give the best tax breaks? It could be an SUV, and the business owner needs to find out if all SUVs qualify for favorable tax breaks.
- Sometimes a small business owner buys a car for personal use and business use. They would need to decide if it makes sense tax-wise for the company to own the vehicle.
- It may be favorable to pre-pay some expenses in December, such as rent or mortgage payments. Or, depending on the small business owner’s situation, it might be better to wait and incur such expenses in the next year.
Every month, small business owners make decisions that can affect the amount of taxes they pay for the year. Those decisions should be made with guidance from a tax professional. Filler & Associates can help navigate the ins and outs of the law throughout the year, and make sure the business is taking advantage of every tax break available.