For an accountant, the end of the year used to be a fun time to plan and develop a plan for the future to optimize financial decisions at year’s end to ensure the tax payer would not get burned by the tax code. For years now, tax planning has been abysmal, decisions as to what the tax code would be were not made by governing officers until the last day of the year and the future was unknown. Most businesses put financial decisions and purchases on hold not knowing of the future, therefore, unable to plan efficiently and effectively.
That has all changed now. We can finally plan, again. The new administration promises to get the best people to simplify the tax code and reduce taxes across the board. Although, we do not know what the tax code will look like, we do know it will become more simplified and that tax rates will be lower. So most likely, it will be beneficial to taxpayer to defer income to next year. Small businesses can breath again and start investing in growing their businesses.
Here are some Year-End Tax Tips from Accounting Today to get you planning for this year’s end. These steps may help you to have a better tax return in 2017.