It is hard to believe that November is underway and the holidays are right around the corner. Before we know it, 2019 (and tax season) will be here. However, before we let the holidays come and go, it is important to speak with your trusted accountant to determine what you can do before the end of the year. This is important whether you own a business or not.
Should I donate to charity? Should I max out my 401 k? Should I buy that piece of equipment or open a retirement plan through my business? How will the new tax law affect me? These are questions that should be answered by your trusted tax professional. Keep in mind that it is much easier (and could save you a lot of $$) to plan ahead than to fix afterwards.
When it comes to planning ahead for your personal taxes and finances, there are many things to consider. The new tax law brought about even more time so that we can plan ahead. Had we spoken around the holidays in 2017, we would have been discussing prepaying some of your property taxes. Along the same lines, now that the standard deduction has nearly double, does it make sense (for tax purposes) to donate to charity? I have been discussing the idea of grouping charitable donations with many of my clients. Does it make sense to max out your 401 k contributions (hint, this is more than just about taxes, it depends on your debt levels)? Although you may think businesses are more complex, there are plenty of issues that we can discuss for your personal financial life.
If you are a business owner, there are also a great deal of questions that we can answer regarding year end (and overall) tax planning. If you own and rent out your office building, should the same LLC own the property? Should I make that huge purchase for my business now or should I wait until 2019? What type (if any) of a retirement plan should I open for my business? It all depends on your specific situation! You can always ask your friends/colleagues, but keep in mind their answer is usually based on their situation (not yours)!
“I don’t need an accountant, my taxes are simple.” I have heard that statement many times, and most of the time I found errors in the return or ways the client could have saved enough money to pay my fee and have a lot left over. Your trusted tax professional is there for you throughout the year. The relationship should be more than just assisting with your filing during tax time.
I look forward to answering any of your questions (even if I won’t be doing your taxes). I can be reached via email ([email protected]) or cell phone (973-879-9111). I look forward to answering any of your tax , accounting, and other financial questions and working with you in the future!
Andrew Kabatchnick is a local CPA that focuses on individuals and small to medium sized businesses. Along with assisting with taxes and accounting, Andrew helps with his clients overall financial health and well-being. Andrew lives in White Plains with his wife Leah and daughter Sophie (who was just born on August 29)!
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