Make a list, check it twice to Pay Less Tax
December 18, 2020
The hustle of the holiday season is a bit different this year, while enduring the virus pandemic; however, hope is that this will be the last year we need to struggle. As we approach another year-end, I wanted to take a moment to share a list of helpful reminders that could reduce your taxes and share what I am personally looking forward to in the New Year.
Process your outstanding expense reimbursements from your business for payments made personally (we recommend using an accountable expense reimbursement plan to maximize tax savings)
Update your mileage log (okay, I know I harp on this one A LOT, but only because it needs to be done!)
Finish your annual business entity documentation (board minutes, annual shareholders meetings, organizational meetings, partnership and buy-sell agreement updates, etc. – these are often the first documents requested during an examination)
Review your outstanding bills or invoices for timing considerations that can push the taxable income into next year or take the deductible expense this year…even better to do both (timing can be a very empowering strategy from one year to the next)
Commit to not living life by default and recognize that how much tax you pay is really a choice (our tax plan is a tangible reminder of how beneficial proactive tax planning can be)
What would entering a New Year be without some resolutions? I enjoy strategic processes throughout the year, but in keeping with the more “traditional” timing, here is a quick list from my personal notebook:
Watch my children give my dad a hug the first day it becomes safe and legal to do so (he lives in a small, assisted living center and has been very secluded without visitation since March 2020)
Individually recognize at least one influential person in my life each week
Re-establish the work-life boundaries that were suspended during 2020 (work from home, online learning supervision/participation, excess snacking- no excuse there, just opportunistic, the hand-tied flies in my fly box are not going to lose themselves and last I checked, our garage does not have any submerged snags)
Help 10 real estate professionals stop spending a minimum of $10,000 on taxes they do not need to pay
Please update your list, check it twice and share some good news with someone this holiday season. I wish you all a healthy, prosperous New Year.
To learn more legal, tax-saving strategies for business owners, or get help with an IRS tax problem, contact me at (360) 474-5892 or e-mail me at tate@ensigncpa.com.