Deductions your business shouldn't miss this year.
Look for more tax advice from Jeffrey Parker in our upcoming Law & Tax Resource Center.
Before April 15th, it is important to work with your accounting team to identify tax deductions that will lower your tax liability. For instance, your out-of-town trip last year to work on a long-term project with a new client may have cost you a fortune, but there are deductions you can elect for those costs. Being tax savvy and carefully reviewing your business expenses from 2004 can make a big difference in what you may owe or receive from Uncle Sam. Fortunately, there are a number of old, revised, new and extended tax deductions that may lower taxable income and translate into greater tax savings.
If you haven’t done so in the past, take the time this year to maintain good records, be organized and understand what is needed to efficiently prepare your business tax returns. You can reduce the cost of your professional fees significantly if your accountant doesn't have to spend his or her time sorting through receipts or correcting your books. And most importantly, consult with a CPA about how you can develop a tax planning strategy for your business that will position you to take advantage of tax provisions that might reduce your 2005 tax liability.
For information about the tax tips in this article, please visit www.irs.gov.
Jeff Parker is a principal with Rothstein Kass-Certified Public Accountants (www.rkco.com), one of the top 20 largest international accounting and consulting firms based in the U.S. He is a certified public accountant and attorney in New Jersey. Jeff advises closely-held entrepreneurial companies on business finance issues and taxation; in addition to, providing tax services for real estate companies, broker-dealers and high net worth clientele for the Firm's financial and entrepreneurial services practices. Jeff also assists clients with estate and gift tax matters.
Jeff is a member of the American Institute of Certified Public Accountants (AICPA), the New Jersey Society of Certified Public Accountants (NJSCPA), the American Bar Association (ABA), the New Jersey State Bar Association (NJSBA) and the National Organization of Office and Industrial Properties (NAIOP.)