Year-end Tax Reminders

I am not a CPA but here are a few year-end tax reminders. The clock is ticking. Here are a fw tips I have picked up that may be of interest to business owners. Please review and talk to your CPA regarding your tax planning.

• If you don't itemize your decuctions, you may still deduct 2009 proprty taxes and pay, upt o a $500 limit for singles and $1,000 for couples.
  
  
• If your small business doesn't have a pension plan, consider establishing one to get a tax credit up to $500 in each of the plan's first three years.
  
  
• Max out contributions to retirement plans. You can put away $16, 500 in a 401(k) plan ($22,000 if you're 50 or older), $11,500 in a SIMPLE ($14,000 for 50 and older), or $5,000 in an IRA ($6,000 for 50 and older).
  
  
• Need a new vehicle? Buy before year-end to take a deduction for sales taxes on up to $49,500 of the purchase price. Income limits apply.
  
  
• Consider buying equipment for your business to utilize the $250,000 first-year expensing option and 50% bonus depreciation.
  
  
• Get your investment records in order so you can make wise year-end sell decisions, either to rebalance your portfolio at the lowest tax cost or to offset gains and losses.
  
  
• Complete annual gifts before December 31 to utilize the 2009 tax-free gifting allowance of $13,000 per recipient.

As I said, I am not a CPA but as business owners smart tax planning is essential for success. It is doubtful that future tax laws will favor the small business owner so do what you can now. Contact your CPA now, maybe you can find some tax-cutting options.