It’s December, which means you’re running out of time to trim your 2009 tax bill. What can you still do?
Buy some assets! Any type of equipment that you buy for your business before year-end can be written off for a 2009 tax break. The cost of computers, copiers, fax machines, printers and even software can be written off through depreciation. Stock up on office supplies that you’ll need in the next couple months, but don’t go out and buy stuff that you don’t actually need!
Organize your receipts! Now’s the time to start tracking down receipts for all of your deductible business expenses, not the first week of April! Are you missing some mileage records? Reconstruct them while you still remember where you went. Missing some receipts for online purchases? Download duplicate copies while they’re still available. And if you’re going to be claiming a home office, you can start collecting all of your utility bills, homeowners’ insurance bills, and records of other deductible expenses. In fact, if you pay your January mortgage or rental payment before the end of this year, you’ll have a little extra mortgage insurance or rent to deduct, as well!
Open a solo 401(k) retirement plan. If you still have profits that you want to protect from the tax man, check out the wide range of solo 401(k) plans available to self-employed business owners. You can stash away a maximum of $49,000 in 2009: $16,500 plus 20% of your net business income.
Get your paperwork organized now, shop the Christmas sales for good, cheap office equipment, and pat yourself on the back for being so organized for the upcoming tax season!
Deb Howard Greenleaf, EA, CEO and Principal, of Greenleaf Accounting Services provides virtual accounting and bookkeeping services and specializes in financial management to consultants, coaches, solo professionals, and other small business owners across the US. Deb is an Enrolled Agent (EA)—an IRS-licensed tax professional—and specializes in small businesses and entrepreneurs filing Schedule C or as an LLC. As an Advanced Certified QuickBooks ProAdvisor, Deb spends her day in QuickBooks Online and specializes in providing QBO support.
