seminar by xiuliliaofz

VIEWS: 20 PAGES: 11

									Tax Strategies Seminar
 Its important to begin closing your year end
financials out now so you can work on
lowering tax obligations.

The simplest things to do if you are facing a
tax liability are:

1) maximize your retirement plans
2) make any capital expenditures prior to
12/31 section 179.
3) Make last minute changes to how revenues
and expenses are recorded.
Year end profits = year end tax
liabilities




Ways to minimize tax obligations
Solo 401(k), individual 401(k) and single
401(k) CONTRIBUTIONS.
Allows you to make greater tax-deductible contributions than
a SEP-IRA or a SIMPLE IRA
While SEP-IRAs also allow large contributions of
as much as $49,000, they are limited to 25% of
compensation. People age 50 and older can’t
make catch-up contributions
Limits of Section 179 (updated as of Sep 27,
2010)
Section 179 does come with limits - there are
caps to the total amount written off ($500,000 in
2010), and limits to the total amount of the
equipment purchased ($2,000,000 in 2010.) The
deduction begins to phase out dollar-for-dollar
after $2 million, so this makes it a true small and
medium-sized business deduction.

This is a great way to acquire equipment and
capture a tax write off.
There are a few simple steps you can take to help
sour out tax liability with your general ledger. For
example:

1) Prepaid expenses
      You can pay insurance, rent , utilities , vendors
   upfront now for 2011 and take the tax write off for
   2010.

2) Recognizing revenues
     If you have large orders / jobs for the holidays
   and you already owe taxes for 2010, you should
   recognize that revenue for 2011.
401k loans and home equity loans
The downsides of pulling money out of your 401k
Unless you repay the loan, it is considered a
premature distribution. You would owe federal
and state income taxes as well as that 10% penalty
if you are under age 59 1/2.
The loan isn't tax deductible. It's considered a
consumer loan, so there is no tax advantage.
Dave Ramsey has been quoted as saying 401k
loans are equivalent to 40% loans once interest
and penalties are added up.
Mortgage interest is tax deductable .

A comprehensive tax analysis needs to be done
by your tax professional to assess what approach
you should take when borrowing money.

They will determine if you should file a standard
deduction or itemize your deductions.
Steps to take for fiscal year end 2010 and going
into 2011;
1)Stay on top of your accounting each and every
  month.
2)Understand where your finances are by reading
  your income statement and balance sheet
3)Keep 3-6 months worth of cash (not credit lines )
  on hand at all times. The businesses that
  survived this recession all went into the
  slowdown with strong cash positions
4)Keep your personal credit clean and checked
  annually.
5)Understand how every transaction you make will
  have tax implications impact your company’s
  financials
6)Have your tax professional answer for you each
  month the following question” if this month was
  year end , what would my tax liability be and
  what steps can I tax to minimize it” By asking
  this question each month, you will see your tax
  obligations quickly dwindle.
7)Last but not least, WRITE A SOLID BUSINESS
  PLAN AND MAKE SURE YOU ARE FOLLOWING IT
  EEVERY DAY !! THIS WILL KEEP YOU FROM
  LOSING FOCUS.

								
To top