How Can I Structure My Business to Pay Less Taxes?

Each business has the option to elect a variety of tax status. The first thing you should do is look at the type of business that you are engaging in and which tax status is going to offer the overall savings for your type of operation. That’s an issue that should be reviewed on an annual basis as operations and income expenses change. The tax laws are in constant flux so you should also take a look every year at what’s going on with the tax laws. Are there particular bonus depreciation options or energy credits available this particular year, and use those. Be proactive and take a look at your business every year before year-end. You can still do something if you look at it in December, but it might be too late in January. Do look at retirement plan options and all of your employee benefit plans. Those may be able to save you quite a bit in taxes.

© 2014 Parsonage Vandenack Williams LLC

For more information, contact us

Expiration of Bush Tax Cuts Likely Will Raise Income Taxes for Everyone

If The President and Congress do not act before the end of the year, many significant tax cuts from the Bush era will expire. One of the significant tax increases will be in the area of estate taxes.  If action is not taken these tax laws will revert back to what they were in 2001, and the exemption for bequests at death will drop to $1,000,000.

Additional taxes that will increase, if action is not taken, include income taxes (by removal of the 10% bracket and increases in the 25% or higher brackets) and long-term capital gains (which will be increased to 20%).  Many favorable tax breaks, such as bonus depreciation, will no longer be available.

Tax planning strategies are extremely important to ease the transition into 2013. A good year-end tax plan could make a huge impact on taxes paid after the first of the year. With a successful strategy, the ill-effects of the Bush Tax Cuts expiration will be lessened.

© 2012 Parsonage Vandenack Williams LLC

For more information, contact info@pvwlaw.com