Tax Planning for Small Business Owners Article

I like the message in this dated article "Tax Planning for Small Business Owners" because it reminds tax payers of the importance of tax planning. Unfortunately, I can speak from personal experience regarding the importance of tax planning. One tax year I found myself pushed into an AMT bracket with only one tax savings option (not the preferred option) available to me. Had I sat down prior to the tax year's end, I would have had a more attractive option.

I encourage you to read through the article (keeping in mind it is dated) to inspire you to make time for tax planning before it is too late (i.e. at the end of your tax year). I have provided the link to the article below and a link to current tax rates should you do you own tax planning. Regardless of whether you do it yourself or hire a tax professional, you can use the following 6 goals described in the article to frame your tax planning questions to your tax professional.

Article Excerpt:
There are countless tax planning strategies available to a small business owner. Some are aimed at the owner's individual tax situation, and some at the business itself. But regardless of how simple or how complex a tax strategy is, it will be based on structuring the strategy to accomplish one or more of these often overlapping goals:
1. Reducing the amount of taxable income
2. Lowering your tax rate
3. Controlling the time when the tax must be paid
4. Claiming any available tax credits
5. Controlling the effects of the Alternative Minimum Tax
6. Avoiding the most common tax planning mistakes

http://www.cpasitesolutions.com/content/articles/taxplanningforbo.htm

http://taxes.about.com/od/2009taxes/qt/2009_tax_rates.htm (see tax rates)


Happy Tax Planning,

Eura Tunstall, CPA
http://www.euratunstall.com/

Disclaimer: This blog does not constitute tax or finacial planning advice rather consult your professional tax professional and/or financial planner.

IRS circular 230 requires that I inform you that the advice contained herein is not intended to be used, and it cannot be used, for the purpose of avoiding penalties that may be imposed by the IRS.