Last minute year-end tax savings strategies

If you’re like the rest of us in today’s faced paced world… you look up and find yourself having to do everything at the last minute. Well here are some quick last minute year-end tax savings strategies for you and your business.

Cash basis business owners:

• Hold deposits to deposit after the year flips to defer income recognition
• Prepay expenses, vendors, retainers, etc to accelerate deductions
• Consider using a credit card to pay deductible expenses before the end of the year. Doing so will increase your 2016 deductions even if you don’t pay your credit card bill until after the end of the year
• Purchase autos over 6,000 lbs, computers, or equipment needed in your business and utilize section 179 immediate expensing provisions 

Individual taxpayers:

• Maximize HSA and MSA contributions
• Maximize any retirement plan Salary deferrals like your 401(k)
• Dump loser stock investments to offset any realized gains
• Make gifts to charities or last minute donations of unneeded belongings
• Distribute income from trust and estate accounts

We hope you enjoy these last minute year-end tax savings strategies, brought to you by GRA CPA.