If you move quickly, you can use some basic tax planning tools to reduce your 2009 business and individual income taxes. Here are some ways to save on this year’s tax bill:
1. Defer Income: If possible under your accounting method, delay the receipt of payments you are owed until after the new year.
2. Increase Business Expenses: Buy items for your business this year, with credit cards if necessary. That way you can maximize your deductions for this year. You can buy office supplies and equipment and pay some of your business bills early, such as phone service, utilities, insurance, rent and professional subscriptions.
3. Contribute to a Retirement Plan: Make an extra contribution to your retirement plan before the end of the year.
4. Make Charitable Contributions: Donate to your favorite charity by the end of the year. This includes cash, check or clothing or household goods to your local charity. Just make sure your get a receipt.
5. Prepay your State and Local Tax Estimates: If your cash flow allows it pay your state estimated taxes by December 31st. If you owe property tax that are due in January also pay before December 31st.
6. Rental Property Owners: Pay any bills on the rental property that are due in the first quarter of 2010 pay by the end of this month. This will increase your rental expenses for 2009.
These are the easiest ways to legally rearrange your personal and business affairs to minimize any additional tax burden. I always stand ready to discuss your tax concerns and to advise you on our ever-evolving tax system. Please do not hesitate to make an appointment to see me soon if you need tax advice. You can also visit my web site (www.carrickaccountingservices.com) to see other income tax savings strategies as well as the monthly news letter covering many tax topics.
Also I am taking tax appointments NOW for the upcoming income tax season. So do not hesitate to call or send an email to me at either carl@carrickaccountingservices.com or carrick1@broadstripe.net.
Carrick Accounting Services
6304 Homewood Rd
Linthicum Heights, MD 21090
410-850-0523 Home Office
410-859-5658 Fax
410-804-1313 Cell
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