Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except Business Tax Strategies: What Works and What Doesn’t

You are searching about Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except, today we will share with you article about Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except was compiled and edited by our team from many sources on the internet. Hope this article on the topic Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except is useful to you.

Business Tax Strategies: What Works and What Doesn’t

It’s mid-December and time for Solopreneurs and all independently employed professionals to think about how much money we’ll hand over to the tax man this year. Tax planning is usually at top of mind as the year ends, but be advised that obsessing over taxes is not always useful. New York City CPA and small business tax specialist Michael Hanley recommends that you pause and carefully evaluate the impact that aggressive tax strategies would have on your financial circumstances.

Hanley cautions small business owners and Solopreneurs against inflated spending on business expenses in order to lower the tax bill, because deductions are not a dollar-for-dollar benefit. Every dollar written off as a deduction yields on average only 30 cents in tax savings (depending on your tax bracket and legal structure of the business). If you have a big-ticket item to buy and you anticipate that this year’s income and next year’s will be about the same, then buy when you can get the best price on the item, be it this year or next. Your savings could be worth more than the deduction.

Hanley also addresses the apparently common tactic of zeroing out one’s business bank account by December 31. Paying for business expenses, adding to your retirement account, or purchasing business equipment or supplies might make the zero bank account balance tactic work. Paying yourself a bonus, taking a shareholder distribution if your business is a corporate entity, paying down your credit line at the bank, or paying off business credit cards will not give you legitimate deductions.

Professional development education is tax-deductible, so if you’re holding money and there is a potentially useful workshop or symposium offered late in the year or early in the new year, do register and pay on or before December 31. Adding a certification to your CV can make your services appear more valuable to clients and might also justify an increase in your hourly rate and project fee.

You might also consider throwing a holiday party for clients, prospective clients, referral sources and selected business colleagues (meaning, no one who might steal a client!). The party expenses will be tax-deductible and best of all, it could turn out to be a networking bonanza that creates billable hours for you in the coming year and beyond.

Clients and referral sources could come away with more business as well and that will make their relationship with you more valuable to them. If you can grab a big table or a private room in a restaurant that needn’t be fancy, but has a good reputation, then plan your party and use Evite for the invitation and RSVP. Allow 7-10 days for the replies—last minute invitations can be just fine. Spontaneity has its charms, especially at this time of year.

Invite 30 guests and expect 10 to show. Set out five or six finger foods and arrange for a signature cocktail. If someone asks for beer or wine, let them have it. Your party can run from 6:00 PM – 8:00 PM. Most people will have two drinks, the restaurant will tell you how much food to set out. You will probably spend $60/pp, meaning that a table of 10 will cost about $750.

You might also consider holding a party for your Linked-In connections. It would be a wonderful way to introduce your colleagues to one another and billable hours could be created as a result. You may want to make this a pizza, salad, beer and wine affair, but so what? It’s a great idea, regardless. If you have 100 connections, plan on 25 showing up.

If it’s too late to host a party this year, the cards and stamps used for the December greetings that you’ll send to clients and referral sources are tax-deductible. Furthermore, if certain clients have given you a generous amount of billable hours, perhaps with an ongoing retainer, then send those clients a gift. Confirm with the HR department of the company that corporate gifts are allowed and if there is a maximum gift amount. The gift will enhance the relationship and it is tax-deductible as well.

Thanks for reading,

Kim

Video about Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except

You can see more content about Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except on our youtube channel: Click Here

Question about Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except

If you have any questions about Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except, please let us know, all your questions or suggestions will help us improve in the following articles!

The article Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except was compiled by me and my team from many sources. If you find the article Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except helpful to you, please support the team Like or Share!

Rate Articles Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except

Rate: 4-5 stars
Ratings: 2703
Views: 76528935

Search keywords Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except

Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except
way Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except
tutorial Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except
Stock Bonus Retirement Plans Are Similar To Profit-Sharing Plans Except free
#Business #Tax #Strategies #Works #Doesnt

Source: https://ezinearticles.com/?Business-Tax-Strategies:-What-Works-and-What-Doesnt&id=9848005

Related Posts

default-image-feature

Step-By-Step Example Of The Stock Valuation Technique Using Numbers Your Exit Plan – Timing is Everything – How You Can Profit Even in Today’s Economic Downturn

You are searching about Step-By-Step Example Of The Stock Valuation Technique Using Numbers, today we will share with you article about Step-By-Step Example Of The Stock Valuation…

default-image-feature

Small-Cap Stocks Are Expected To Out-Perform Large-Cap Stocks Day-Trading Rules Used Pertaining to a Lucrative Trade in Micro Cap Penny Stocks Companies

You are searching about Small-Cap Stocks Are Expected To Out-Perform Large-Cap Stocks, today we will share with you article about Small-Cap Stocks Are Expected To Out-Perform Large-Cap…

default-image-feature

Should.I Sell.My Stocks.For.A.Capital Gains.Loss Then Buy Back.In How to Get Rich Trading Small Cap Stocks

You are searching about Should.I Sell.My Stocks.For.A.Capital Gains.Loss Then Buy Back.In, today we will share with you article about Should.I Sell.My Stocks.For.A.Capital Gains.Loss Then Buy Back.In was…

default-image-feature

Should You Sell Stock Funds That Are Up Oilr.Bond Funds The Economic Recession of 2007

You are searching about Should You Sell Stock Funds That Are Up Oilr.Bond Funds, today we will share with you article about Should You Sell Stock Funds…

default-image-feature

Should I Purchase My Stock Options Short-Term Gains Long-Term How to Improve the Shipping and Receiving Methods of Your Manufacturing Firm

You are searching about Should I Purchase My Stock Options Short-Term Gains Long-Term, today we will share with you article about Should I Purchase My Stock Options…

default-image-feature

Roth Ira Ira Non-Retirement Stocks Bonds Where To Invest What Financial Literacy: Key to Creating and Sustaining Wealth for African Americans

You are searching about Roth Ira Ira Non-Retirement Stocks Bonds Where To Invest What, today we will share with you article about Roth Ira Ira Non-Retirement Stocks…