We wrote last week about the option of deferring business income as a way to save on taxes if you expect to be in the same or a lower tax bracket next year.
Well if you’re self-employed, you can also use that tactic to save on your personal taxes.
You hopefully worked hard all year to make this one of your best years. You are diligent with billing your customers as soon as possible so that the cash flow is there for future needs.
But hold on little buckaroo – remember you are cash-basis and could this great year result in you being pushed to a higher tax bracket? Or cause tax breaks to be phased out?
Prior to year end, take a moment to see if you can bill some jobs after Dec. 31 to help reduce that tax burden.
Also take a look and see if you can accelerate deductions. This, too, can help to minimize your tax bill.
Tax planning will allow you to take advantage of some of these timing issues which can result with more money in your pocket then Uncle Sam’s.
Check out our prior year end tax tips, and look for more in the coming days and weeks. Check back here regularly for more tips - or call us for custom advice for your business or personal tax returns.
