Thursday, November 15, 2007

Tax Planning Switch for 2008

The final months of the year are the time that many taxpayers are meeting with their accountants to get a good hold on their taxes for this year. Typically as a small business taxpayer, the strategy for tax planning is to defer income to the next year and accelerate deductions in the current year. This strategy may need to be changed if 2007 was a bad year economically (see previous posts regarding small business sentiments). If there was not very much revenue for 2007, one may ask what the use in accelerating deductions is.

One thing is do is maybe switch your plan and defer deductions until next year. As with any tax strategy what actions your small business takes in the old year need to be examined in regards to the projections for 2008. Be sure to speak with your accountant before taking any actions for the actions you take should not only be to lower your tax bill ,but to keep your business running smoothly for years to come.

Keeping your Business N Synergy

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