As the year closes, so does the window of opportunity to bring your 2014 income and expenses in line with previous years. This savvy business move can help lower your income tax liability.
Start by asking your tax adviser whether you might benefit from evening out your income. Depending on your situation, increasing expenses through business-related purchases at year’s end can be a good option — especially for next year’s necessities or upgrades:
- Supplies, such as tires, oil, lubricants and filters
- Parts, including belts, batteries and bearings
- Pre-owned equipment — Your Case IH Dealer Is Making Something Out of Nothing
- New equipment — Explore these year-end offers
- Farm-office equipment and supplies, such a computers, printers and data storage
Year-end tax planning is an important annual business activity that can impact your finances long-term. But you must act before Jan. 1. Doing so can help put your operation in a better position heading into the new year.