For most small businesses and individuals, tax season is mercifully over, but that does not mean that you should forget entirely about taxes for the rest of the year. In fact, according to this Forbes article, proactive business owners have a huge advantage when the next tax season rolls around. If you keep interacting with your Dallas Tax CPA as the year unfolds, you will have less anxiety next tax season.
For instance, you could receive tips and advice on spending decisions that would help you maximize deductions for the 2013 tax year.
Streamline expense recording
Stop throwing those receipts into a shoe box! There are so many fantastic and free or quite inexpensive cloud based storage technologies available that it makes too much sense not to use one. Scan receipts, or take pictures of them with a camera or even any smart phone and just save the results into a folder labeled “tax receipts” in your database. The benefit beside just not losing small pieces of paper during the year is that when it is time to file your returns, you will just need to share that folder with you accountant.
Auto expense deductions
The 50% “bonus depreciation” tax break for new vehicles placed in service has been restored in 2013. That means there are some scenarios when rather than using the standard mileage rate of 56.5 cents per mile, you will come out ahead deducting actual expense for a new car. This does mean keeping track of actual auto expenses, but if you implement a scanning and storage system, then this won’t be much more of a hassle. Consult with your CPA to run the numbers for you, but depending on the price of the car, when you place it in service and how many actual miles you drive each month, that tax break could result in quite a bit of difference.
Section 179 extension
If you are considering upgrading equipment or software this year, there is an option to deduct the full cost up front for qualifying purchases up to $500,000. This is a 2013 tax year extension only, and it may go away in 2014 so as you are planning for future purchases for your business, you should consider this deduction. Your accountant will be able to provide you the list of qualifying purchases.
W-2 withholding updates
Individuals benefit from continued CPA consultations as well. During the year you may receive a raise, or change jobs resulting in a salary adjustment, or experience any number of life events that would initiate a change in your paycheck withholdings. For instance, if a raise pushes you up into another tax bracket, your CPA might advise you to increase your pre-tax retirement account contributions to offset the tax liability.
Gurian PLLC is a Dallas Tax CPA firm providing exceptional accounting and CPA services to individuals and business owners throughout the year. Contact us today for more proactive tips on planning for 2013.