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End of year tax strategies

Discussion in 'Asset Protection/Taxes/Legal' started by M-M, Dec 3, 2007.

  1. M-M
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    M-M New Contributor

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    I hope this questions isn't too dumb. I'm just still fairly tax illiterate.

    Is there anything I should take care of before the year ends? Anything that will benefit me? Anything involving my S-Corp?

    Thanks for any help.
     
  2. Diane Kennedy
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    Diane Kennedy Bronze Contributor

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    I have no easy answer other than a blatant plug. Check out my website TaxLoopholes. I blog every day on this very topic (so check every day), read "Loopholes of the Rich" (free book - thank you MJ for making that happen) and if you're really serious, join my "First Class Lounge" on TaxLoopholes - first 30 days are free and the weekly online workshops this month are the series "Last Minute Loopholes."
     
  3. M-M
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    M-M New Contributor

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    Thank you. I ordered the free book (thank you again) and I'll check out your blog.
     
  4. Megan H
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    Megan H New Contributor

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    Hi,

    Here are 2 things I can think of:

    1. Is your S Corp up to date in its Secretary of State filings?
    2. Do you have an outside Resident Agent, and are you current with them?

    As a resident agent business, this is the time of year I prepare a list of all clients who haven't paid their bills or responded to me. In January we make a special filing to drop them as clients. That means they have 30 days to find a new resident agent or risk being administratively dissolved. Agents don't have to notify anyone except the Secretary of State, so if you're in this situation you may not even know your dissolved until something bad happens and you go looking for corporate protection you no longer have.

    Megan
     
  5. hakrjak
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    hakrjak Bronze Contributor Read Millionaire Fastlane

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    If you have a business that sells a product and you've made a profit this year -- reload your inventory big time before the end of the year, so that you offset your profits with expenses. I always take a look at my business's income at the end of the year, and if there is any -- I spend on inventory and fill up my warehouse.

    Also if you haven't made some charitable gifts -- do so now, and get multiple receipts from multiple charities.

    - Hakrjak
     
  6. Diane Kennedy
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    Diane Kennedy Bronze Contributor

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    Not sure I'm following this - inventory is an asset, so it's not a deduction until you sell the item and then it's COGS.

    Some people mistakenly think that because they have a cash basis for their accounting that they can take the expense. But you should actually be hybrid. IRS is really cracking down on retailers who don't show end of year inventory on their tax returns, so it's a red flag for an audit as well.

    Please review what you're doing with your CPA - maybe I"m missing something unique to your situation.
     
  7. hakrjak
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    hakrjak Bronze Contributor Read Millionaire Fastlane

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    I stand corrected. I'm not sure how this is helping me, if at all then. Maybe she is depreciating the heck out of my inventory? My taxes are so complicated with all the real estate, business, and job income stuff -- I don't even try to understand it, I just hand it over to my CPA at the end of the year.

    Guess I need to read some more of your book that you just sent me ;) Stayed up with it last night, thanks again!

    Cheers,

    - Hakrjak
     

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