As the year comes to a close, now is a great time to review a few aspects of your business. To set your tire dealership up for success in the new year, consider the following areas.
Make Charitable Contributions
Consider making charitable contributions before year-end, both to obtain the maximum tax deduction and to fulfill any charitable programs or commitments you may have established.
Buy a New Car
If you need a new loaner car or service vehicle, now is a great time to purchase or lease. Frequently, dealers are anxious to clear out last year’s inventory prior to year-end. In making your choice, consider the federal tax (and occasional state tax) advantages for buying fuel-efficient vehicles.
Examine your current investments to determine those with unrealized losses. Consider selling those investments to take the loss this year. You can deduct up to $3,000 in capital losses in excess of capital gains. However, do not let the tax savings outweigh the investment potential. You might consider “swapping” for a similar company in the same industry if you like the potential of the industry.
Pay Tax-Deductible Expenses
Consider paying tax-deductible expenses prior to year-end. Some common examples are real estate taxes, quarterly state or local income taxes, investment-related expenses and dues. These must be paid by Dec. 31 to obtain a deduction this year. Professional guidance will be helpful here, so consider contacting your financial advisor.
Evaluate Your Progress
Evaluate your progress for the year. How close were you to your budget? Recalculate your net worth. Compare it to the value at the beginning of the year. How did you do?
RichardL. Lipton CPA & Associates LLC, located in Florham Park, N.J.,draws on its founder’s 10 years as a stockholder and manager offamily-owned Sam’s Tire Co. in Paterson, N.J.
RichardL. Lipton CPA & Associates LLC “is structured to personally servelarge and small clients who have a need for business consultingservices as well as accounting and tax services. We have even developeda niche in the area of forensic accounting. Our clients have realizedthat this combination of skills is extremely valuable in providing thehighest quality professional services in today’s and the future’seconomy.” – Richard L. Lipton CPA
Contact Richard L. Lipton CPA & Associates LLC:
E-mail: [email protected]