2011 is racing to an end but there is time left to find tax deductions for your business before December 31, 2011. With some tax planning your 2011 tax bill can be reduced.

• If you are a cash basis business do not bill your customers until after December 31, 2011. Without a bill your customers will not send a payment, no payment equals no income.

• Prepay expenses.  The IRS allows cash basis business taxpayers to prepay and deduct up to 12 months of expenses in advance.

• Has your children helped with your business this year?  Pay your children for the work performed.  Depending on how your business is organized you can pay your minor children and have the payment deductible to the business and tax free to the children. If your business is a single member LLC or a proprietorship no payroll taxes are due on W2 earnings of your minor child.  If your business is a corporation the tax savings benefit is reduced

• Reimburse your section 105 medical plan.  To qualify as a business deduction for this year the reimbursement must be completed by midnight December 31, 2011.  If you do not have a section 105 medical plan contact us to learn more. 

• Use your credit card to create 2011 tax deductions. Purchase using the credit card in your corporation's name and the deduction date is the date of purchase. If using your personal card for the corporation's purchasing ensure the reimbursement takes place before December 31, 2011.

• Purchase equipment. Purchases up to $500,000 qualify for section 179 immediate expensing.

The above are brief descriptions of some of the steps available, contact us to lean more on these items and other steps you can take to reduce you tax bill and keep more of your money.

I would like to show you a process we have developed to help people become 100% DEBT FREE in 10 -12 years (including your mortgage) and create an annual tax free retirement income of $50,000 to 75,000 per year (until you are 100) ALL without spending ONE MORE PENNY than you are currently spending every month?

It will take about 45 minutes to show you the process and calculate exactly how fast you can pay off your debt and start funding your tax free retirement plan.

Contact us today to schedule your appointment to begin your journey to financial freedom.

Preparing income tax returns the question that is repeatedly asked is am I receiving a refund and if so how much? Where does the tax refund come from, does the government send out checks out of the goodness of its heart? No, the refund is your money that you over paid to the government over the past year.  Each pay check taxes are withheld from your gross wages, this is done as the government requires Americans to pay their tax liability on an ongoing basis throughout the year.  If too much tax is withheld your net pay each pay check will be less that it could be and the government is able to hold your money until you file your tax return and claim your refund.  Does this matter?  It depends, do you mind giving the federal government an interest free loan? Or, would you want additional money in your pay check each pay period?  In 2009 the average federal tax refund was $3,036 this equates to $253 per month.  If your federal withholding rate was adjusted to more closely reflect your tax bill you will be able to increase your take home pay. IRS form W-4 is used to change your withholdings amounts, I have a video that will guide you through this process.