LOCATIONS:
New York: Ithaca, NY and NewYork, NY
New Jersey: Flanders, NJ

Tax Strategies for Small Businesses

Consider adopting a qualified retirement plan to benefit owners and employees while reducing your tax bite.

Using depreciation for tax planning.

Because of the wide ranging depreciation options for small businesses, equipment depreciation brings great flexibility into taxable income. You may be able to:

  • Prepare a multi-year equipment acquisition budget.
    Working with one of our CPA's can help you fine tune the acquisitions for the most beneficial tax benefit.

  • Coordinate this budget with year-end tax planning. In a year of higher income, the benefits of the Section 179 asset expensing election may make it a good idea to accelerate the purchase of some or all of next year's assets into this year. Alternatively, if next year's profits are expected to be higher, perhaps it makes sense to delay later additions this year until next year.

  • Understand how mid-quarter depreciation works. If more than 40 percent of your additions are placed in service in the last quarter of the year, your first-year depreciation is recalculated and probably reduced. Thus, a budget that plans large additions in the last quarter may need to be accelerated by a few months.

  • Clean up your depreciation schedule. Each year, remove abandoned and retire assets to reduce your property tax bill.

Talk to an adviser when your business is losing money.

Periods of economic downturn can be the most important time for tax planning. Our advisers can help to ensure your business gets the full benefit of any losses from operations. If your business is a Partnership, S Corporation or LLC, our advisers will consider owner basis issues to make sure that any losses are deductible in the most beneficial period.

Cost segregation.

If you have acquired or substantially renovated a building in the last 10 years, consider a cost segregation study. A study tracks the underlying costs in a project to the specific assets received, usually shortening depreciation life in the process. For land, a study can accelerate depreciation deductions by allocating costs to fencing, paving, landscaping, etc. For the building, expect accelerated depreciation from carpeting, cabinetry and some electrical, plumbing and ventilation work – just to name a few.

Plan ahead if you plan to sell your business.

Depending on the structure of the entity and the selling transaction, the tax results can vary wildly. Discuss with our advisors your long-term exit strategy so that the proper groundwork can be laid today. If your business is a C corporation, special attention is needed to minimize the effect of double taxation. Effective tax planning can make a tangible difference in your company's' cash flow. Tax planning is concerned with the timing and method of reporting income and deductions. The basic philosophy is to defer the payment of tax. Accelerating deductions and postponing recognition of income items typically accomplish this. There are many ways to save tax dollars. Finding the ones that apply to you can be time consuming and confusing. Our accountants can provide you with superior technical and analytical skills to help you minimize your taxes and maximize your bottom line.

Tax strategies for individuals

The accumulation and preservation of wealth requires careful planning to maximize earning and minimize taxes.

Tax planning involves multiple variables, and must be done over multiple years, to take advantage of complex state and federal laws that may allow you to save a great deal in taxes. A few areas to consider and review are:

 

  • Reducing tax on investment income
  • Unique stock options and how the alternative minimum tax (AMT) may affect you
  • Taking advantage of capital losses
  • Deferring tax on real estate gains
  • Reducing tax on a sale of a business
  • Transferring assets to the next generation
  • Opportunities with Roth IRA's

Tax planning must also be done with an eye toward the ultimate transfer of wealth to the next generation. Our CPAs and financial planners can help you avoid unnecessary taxes and develop a coordinated financial plan that is consistent with you goals and values.

Let us help you achieve YOUR goals.

Learn more about our tax and accounting services:

Working with a CPACPA ConnectTax reduction strategiesBusiness consulting

Certain representatives of SAL Inc. are also Registered Representatives offering securities offered through Comprehensive Asset Management and Servicing, Inc. ("CAMAS"), 2001 Hwy 46, Ste. 506, Parsippany, NJ 07054. 1-800-637-3211
Member FINRA/SIPC. Financial Solutions is independent of CAMAS. Check the background of this firm on FINRA’s BrokerCheck.

This website is for informational purposes only and not an offer to buy or sell securities. Leslie Strebel is licensed in the states of New York and New Jersey. .
Angela O'Neill is licensed in New York, Florida, Georgia and Maryland.

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