Running I the Business
By Garry Bartecki
Get a Grip on Your Tax Position
Higher taxes loom, so start planning for the future.
I t’s back! What’s back you might
ask? Now think about it — what
haven’t we had to do the last two
years that we normally had to do in
the past? What is it we avoid doing
every year until the last minute?
What is it we spend a lot of time
gathering data for, not because we
want to, but because we have to?
Have it figured out yet? Does the
word “tax” come to mind? After all
we’ve been hearing for the last six
months, the word “tax” better be on
everyone’s mind going forward. But
it’s not only the word tax you need
to consider; you have to add the
word “planning.” And now you know
what’s back: tax planning!
If tax planning ever had to come
back in earnest, 2010 is the year for
it. On both the “pay less tax side”
and the “pay more tax side,” this is
the time to start planning ahead to
make sure you get all the benefits you
have coming to you from the changes
and new rules, while at the same time
minimize the new and increased taxes
that are coming your way.
• and becoming, in general, more able” income for 2010 and 2011. Garry Bartecki is the managing mem-
Higher taxes ahead efficient because you learned how Update as necessary. ber of GB Financial Services LLP and VP
Through 2009, most contractors to run your business with less cost. • Make sure you are getting the tax Finance for the Associated Equipment
reduced their tax bite because of Add in a couple of W-2s and it benefits from the jobs bill or insur- Distributors. He can be reached at (708)
lower income levels and/or by apply- will be easy to hit the $250,000 mark ance incentives. 347-9109 or firstname.lastname@example.org.
ing operating loss carryovers created when all these new taxes kick in. • Review your estate tax situation.
by bonus depreciation or Section You also have to consider that we That includes your life insurance
179 Deductions. The Section 179 are talking tax books, not your com- policies and how they are structured.
(up to $250,000 write-off for 2010) pany books. These are two different Getting a handle on your tax posi-
is still with us for 2010, but disap- things. If you want a very big surprise tion is a must if you see your busi- To access previous Running the
pears for 2011. someday, just rely on your books to ness starting to pick up due to new Business columns, as well as
additional business management
Starting in 2010, the new health estimate your taxable income! business opportunities. It is also a
care bill provides both hiring incen- They are even messing with the must if