Beauty industry tax guru Larry Kopsa CPA, of Kopsa Otte CPAs & Advisors, can sum it up in two words- Tax Planning! According to Kopsa, while people normally associate April 15th with tax planning, they really should be thinking about it before December 31st.
The end of the year is the deadline to take advantage of some of the most valuable planning opportunities. And proactive tax planning is the key to minimizing your tax and can make all the difference between a pocket full of cash and a pocket full of lint.
Here is a quick quiz to help you decide if you need to see your accountant for year-end tax planning.
In 2008 or in 2009, did you or will you:
__Increase or decrease your business income
__Need asset protection - by setting up a corporation or LLC
__Paying too much Self Employment Tax
__Buy or lease business equipment
__Considering fringe benefits for employees
__Want to transfer income to children or parents
__Hire contractors or employees for your business
__Start using your home for business
__Close or sell a business
__ Start or invest in a new business
__Start using your car for business (other than driving to or from work)
__Sell business assets
__Harvest tax losses
__ Have large capital gains or losses
__Marry or divorce
__Have a baby or adopt a child
__Buy or sell your home
__Make gifts of more than $12,000 ($13,000 in 2009) to any one person
__Start estate planning
__Buy, sell, or exchange investment real estate
Did you answer “yes” to any of the questions? If so, then you can profit from year-end tax planning. Consider calling your accountant prior to December 31st.
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Larry Kopsa CPA is a partner in Kopsa Otte CPAs. Larry is a frequent speaker at beauty industry programs.Disclaimer: The information provided does not constitute legal, tax, accounting, or financial advice and is offered as an information service only. Those seeking specific advice should contact a professional advisor. No liability whatsoever is assumed in connection with the use of this information.
