Best wishes from MAHKENGINE to you for a wonderful holiday season ahead! Hard to believe that 2015 is coming to a close.
Between now and the end of the year, it is important to take a little time (in between the various work, social, and family gatherings) to evaluate your accounting and tax situation. Yes, I hear the voices in your head that are saying I don't want to worry about that now. However, by evaluating a few areas, you may be able to take advantage of some year end deductions and strategies to help reduce your 2015 tax liability.
Charitable giving: Make sure to mail your year end gifts or pay online before 12/31 to your favorite charity or your church. Included in here are also the tax credit payments to public or private schools (Arizona taxpayers). These payments will be an itemized deduction on your Federal return and a credit for your state return.
Contributions to retirement: if you are self-employed, you can make a SEP contribution for 2015 by the due date of your returns (April 15 or October 15 if extended). Start thinking now, so there is time to set aside available funds. Your allowable contributions will reduce taxable income.
Capital gains/losses: If you have sold some stocks, mutual funds, or other assets during the year at a gain, now might be the time to see if you have any losses to recognize before year end to help offset any gains.
Businesses owners: Evaluate if there are expenses, equipment or other asset needs for your business. Before year end is a good time to make these purchases to be able deduct them for 2015.
Ready for a new accounting system? If you have been wanting to improve your accounting system, now is the time to get this set up so you are ready to go come January 1 with a new system. Or, maybe your 2015 accounting records need some help to be tax ready for you or your tax preparer to be able to prepare for taxes. Contact us and we can help you with a data conversion to Xero, get you organized for taxes, and start 2016 with an efficient system.