Year-End Business Tax Preparation

There is still time to implement a tax deduction strategy before the tax year officially ends. While West to East Business Solutions is not a CPA firm, we strongly recommend setting up a meeting with your tax accountant to review your tax strategies. Tax accountants keep up with law changes and understand the intricacies of tax deductions, providing you with a sense of reassurance.

At West to East Business Solutions, however, we can help you correctly record all the deductions on your financial statements to ensure a smooth tax season.?

Here is a list of deductions to investigate?

Employees

• Employer tax credit through retirement plans?
• Employee-related federal tax credits, such as disability credits
• Year-end bonuses?
• Health coverage?
• Payroll and contactor payments – prepare W-2s and 1099-NECs?

Clients

• Consider postponing billing customers, clients, or patients until after December 31, 2024. This strategy, applicable to cash-basis accounting, can effectively reduce your taxable income for the current year.
• Review outstanding accounts receivables?
• Collection services or attorney fees are tax-deductible?

Equipment

• Do you need to repair, replace, or add to your existing equipment? A 60% bonus appreciation is still in place for 2024. It will reduce to 40% in 2025.?
• Using a business credit card can be advantageous when purchasing equipment for your business. You can deduct the expense from the date the charge appears on your card.
• Ask your CPA about bonus depreciation and EV tax credit for 2024. ?

Building

• Prepaying 2025 rent by sending the check on December 31, 2024, so you can take the deduction for 2024 if you need it. ?
• Energy efficiency tax credits: For example, adding solar panels or tint to your windows might qualify you for a tax credit. ?
• If you are building energy-efficient structures for others, it can also give you federal credit.?

Operations

• Professional fees, such as tax accountant or legal services. ?
• Marketing – 100% deductible, including AI?
• Rent?
• Research and Development (R&D)?
• Insurance?
• Travel expenses – set per diam rates?
• Meals – 50% deductible?
• Inventory?
• Interest expense?
• Charity contributions?
• Excess business loss limitations – keep track of your operating losses?
• Qualified Business Income (QBI) deductions?