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Show Go Away. ..But Before You Do... Call Morris Travel... Fares Possible! p financial planning Kathy Engle Mark Hulet Written by HULET & ASSOCIATES Certified Public Accountants YEAR-END BUSINESS MOVES The tax regulations specify that it is your responsibility to pay as little tax as possible under the existing la s. Businesses can reduce their annual tax bill 'nth some very simple year-end techniques. Bad debts are deductible in the year in vhich they are determined to be orthless or partially orthless. Your deduction must be substantiated by records sho ing your collection efforts. The lever your inventory, the lo''er your net profit. You are not permitted to under-value your inventory or to list less inventory than you have on hand. You are permitted, ho ever, to " rite inventory do" n to a reduced valuation " hich you can substantiate. Write do" n the value of shop" orn items and eliminate those items that are unsaleable. If you anticipate major repairs to building or equipment early next year, consider having them completed before year-end. Some items you consider repairs the Internal Revenue Service might consider capital expenditures " hich need to be depreciated over a period of years. No one " ould advocate turning do" n sales. But, perhaps a sale could be closed in January instead of December or merchandise could be sold on consignment. Consigned sales are not final until the merchant sells the product. You are alio" cd to deduct certain year-end bonuses even though they are not paid until next year. It' your company is on the accrual basis, you can take a deduction for a committed year-end bonus if it is actually paid "ithin 2Vi months after the close of your tax year (not permitted for majority shareholders). Even though some of these techniques simply push the tax problem one inorcyear do" n the road, they prov ide you " ith the interest-free use of those lax dollars. 550 MAIN STREET, PARK CITY, UT 645-7390 445 EAST 4500 SOUTH, SLC, UT 261-3459 The Stew Pot Your bidness Call Randy with is our Marketplace news bizness. 01649-9014 |