The Importance of the Mid-Year Tax Review
With half of 2019 gone, now is a great time for businesses to meet with their CPAs and tax advisors to review profit and losses and to take actions that could reduce tax liability for 2019. At PHB, we are scheduling these meetings now with our current clients. Learn more about the business tax services we provide. As professional tax advisors, we can give valuable guidance based on the current tax laws.
If you are having a pretty good year income wise, we might suggest that you take advantage of the Section 179 deduction to acquire new equipment or software for your business. This deduction is actually a government incentive for businesses to invest in themselves. It allows you to buy (or lease) a piece of qualifying equipment and deduct the FULL PURCHASE PRICE from your gross income instead of depreciating it. This results in substantial tax savings.
Another option if your business is doing well is to consider hiring needed staff. The Work Opportunity credit rewards you for hiring someone from one of ten targeted groups, such as a qualified veteran, vocational rehabilitation referral, or summer youth employee.
If the first half of the 2019 is not shaping up quite how you hoped, we can also give you some advice on saving money. For example, you may qualify for the IRC Section 174 tax credit for research and experimentation. Research and experimentation is the work you do to eliminate scientific or technical uncertainty concerning the development or improvement of an invention, patent, process, prototype, formula, technique, or similar product. The tax deductions include direct and indirect expenses.
Another strategy for saving money is to review your income tax payments. If you are paying estimated taxes, you want to get the number right. If you overpay, you are making an interest-free loan to the government. If you underpay, you will incur costly tax penalties.
Make an Appointment Today
Give us a call to set up your mid-year tax review today. We are happy to serve our clients’ needs.