There are several actions you can take to reduce your bottom line for this calendar tax year. Don’t pay more than you have to by utilizing these strategies. The checks don’t have to be cashed by the December 31st. They just have to be written to make sure they are on this year’s books. Remember that you are the “CEO” of your business and it is your smart business actions that keep your business as profitable as it can be through good business practices. As always consult your CPA and or attorney with any tax planning or business practices to make sure the job is getting done right.
Here are some good business year end strategies to reduce your tax liability and or keep money in your business pocket one year longer:
- Pay off your credit card bills early if they're not due until January so the expenses will be counted for 2010. If you're on the cash basis the expense doesn't hit until the money is taken from your bank.
- Pay your house or rental property mortgage payments for January this week so you can get that mortgage interest deduction for the January 2011 payment on your 2010 taxes (I know… this doesn't save you $… it just lets you keep that bit of $ a year longer in your own pocket)
- If you split up your property tax payments in 2 or 3 payments… make the rest of the full payment asap rather than waiting til 2011.
- Buy any plane tickets for trips in Jan/Feb/March now rather than waiting
- Buy your best partnerships gifts now if you haven't already. It’s an investment w/ a huge ROI if you do it right (we're big on gifts for our best and most loyal partnerships… send them out 4-5 times a year)
- Fund that IRA (of course you can fund that all the way up until you file your taxes)
- Buy any business services now that will help you do move business next year and reduce your tax liability. Pay less in tax and produce more results by getting the services that will make an impact on your business. People forget that getting products and services are write offs!!!!!
- Pay for professional services in advance.
- Call and see if you can pay for some of your business services a year in advance to bring down your profits this year to pay less in taxes.
- Buy materials that you will use for your real estate business now. Stock up.
- Buy office supplies and business cards now to get the expense on this year’s business. These are going to be ongoing expenses so get them now.
- Pay out a commission early. They are going to get paid anyways so write the check now and reduce this year’s bottom line.
- Take a look at what you are doing right now with your business and make the “CEO” decision on what areas that you may need to upgrade and put a deposit down with those who will have you upgrade whatever product or service your business needs to compete at a high level in today’s fast moving real estate market.
This is your quick “business thought provoker” that you should add to your calendar a few weeks before your year end to remind you that make good business expense decisions. After all, it is great to make money in business, but it is even greater to actually keep it!!!!! We are committed to your continued success and push towards financial freedom and will look to help you every step of the way. Finish your business year strong and equally important is to start preparing your plan now to make next business year the best one ever.
Committed to your business success as always,
Jason Palliser
Trainer & Educator for Business Success