Tips for Year-end Tax Preparation

As 2014 draws to a close and appraisers prepare to put another business year behind them, it’s important they compile their tax documents.

According to the U.S. Small Business Administration, owners need to consider federal and state tax issues.

deduction-1Determine a strategy

Whether it’s knowing how spending impacts tax bills, in which year to incur expenses or understanding accrual and cash basis, appraisers and other small business owners have a lot to consider to help ensure the creation of a successful tax strategy.

Keep it in the family

Did you know that hiring a spouse can have a positive impact on a company’s tax bill? The benefits can extend to retirement funds, taxable income, health insurance and other key areas. While there could be some challenges working with a spouse, it might be worth investigating the potential bottom line impact.

Take a break

More than 50 popular tax provisions expired at the end of 2013, and appraisers would be wise to check with their accountant to find out what, if any, impact those provisions could have on the business. Even if small business professionals previously benefitted from tax provisions, it doesn’t necessarily mean those breaks will continue.

Focus on retirement accounts

According to the Internal Revenue Service, there are four important remindersfor anyone who contributes to individual retirement accounts. Regardless of what types of retirement accounts appraisers have, now is an ideal time to discuss potential year-end contributions with an experienced tax professional.

Appraisers, what strategies have helped you during the tax preparation process?