More Year-End Business Tax Deduction Ideas

This week, I am continuing my series on year-end tax deduction ideas, to reduce your business taxes. In general, consider timing your deductions based on

1. Profits.Whether you expect more profits this year or next year
   
2. Deductions. Deduction amounts allowed by the IRS this year vs. next year
   
3. Tax Rates. Business and personal tax rates this year and next year

I will give you information on these factors in my posts over the next few days.

A few weeks ago, I suggested you review your inventory and consider whether you should stock up for increased costs (lower taxes) this year or next.

On the list for this week, tax savings for:

• Setting up a retirement plan or paying bonuses
  
• Taking advantage of bonus depreciation and Section 179 deductions
  
• Writing off bad debts and obsolete equipment
  
• Timing income and expenses