Increasing your profits requires selling more and/or spending less. While building up your sales may require an extended effort, business costs are often very ripe for a quick trimming. Here are some possibilities. Supplies and Other Purchases Usually in any business, relatively few items represent a very large share of all outlays. The first step […]
The Rental Route
Buy or lease? It’s a decision many small businesses face. Owning real estate certainly can have advantages, including the opportunity to build equity. But many small businesses in need of space choose the rental route instead. Cash Flow Considerations By leasing, a company can avoid taking on debt to acquire a property. Less debt on the balance sheet […]
Tax-smart Ways To Take Cash Out of Your Corporation
Owners of closely held C corporations are often interested in withdrawing profits from their companies in ways that minimize taxes. What are the options? Pay Salary/Bonus. If the owner is a company employee, taking more salary or a yearend bonus is an option, as long as the total amount of compensation the owner receives is reasonable. The company […]
Lock In Those Business Deductions
If you run a small business, you already have a full plate. The last thing you need is for the IRS to question any of your business expense deductions. But it could happen. And that’s why having records that prove your expenses is so important. Even deductions for routine business expenses could be disallowed if you don’t have […]
Taking Family Members on a Business Trip
Anyone who spends a significant amount of time traveling for business purposes will tell you that living out of a suitcase is no fun. Despite routinely traveling to destinations many people only hope to visit, many business travelers dislike having to leave home on an extended business trip. Taking a spouse or the whole family […]
Federal Tax Breaks Restored
Individual and business taxpayers can benefit from a variety of federal tax breaks that were extended or made permanent by the Protecting America from Tax Hikes (PATH) Act and the Consolidated Appropriations Act, 2016. Here are selected highlights. State and local sales tax deduction. The law gives individuals who itemize their deductions the option of […]