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December 08, 2021 | Posted in:

Year-end tax planning for your business

As 2021 winds down, here are some ideas to help manage your small business and prepare for filing your upcoming tax return.

 

Identify vendors who require a 1099-MISC and 1099-NEC and obtain their tax identification numbers.

 

Determine if you qualify for the Paycheck Protection Program (PPP) safe harbor threshold so you can deduct certain 2020 expenses.

 

Accelerate income or defer earnings based on profit projections. Review receivables, focus on collections and consider possible write-offs.

 

Certain business meals are 100% deductible in 2021. Gather the necessary receipts and documentation for this and all expenses. Also consider any last-minute deductible charitable giving including long-term capital gain stocks.

 

If claiming bonus depreciation expense, you must place the qualified assets in service prior to year-end.

 

Remove obsolete or worthless products from inventory and track this for a potential tax deduction. Organize your records by major categories of income, expenses and fixed assets purchased.

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