9 Year-Round Strategies for Best Tax Savings -- Seattle Business Consultant

FEDERAL WAY, Wash. - May 16, 2014 - PRLog -- Businesses can operate and plan more profitably if they strategize year-round on taxes, according to longtime Seattle business consultant Terry Corbell.

"Unfortunately, many business owners inadvertently shoot themselves in the proverbial foot by waiting until the last minute to think about taxes," says the profit professional.

Mr. Corbell has been a business-performance consultant since 1992 as well as a business-coaching writer.

Mr. Corbell recommends asking your tax advisor about these nine strategies:

1. Don't wait if you need equipment now and the price is right. It's expected Congress will retroactively agree to extend the 50 percent bonus extension in Section 179.

2. If you need a nice vehicle, buy a sport utility vehicle if it weighs 6,000 pounds or less. However, some in Congress want to repeal this deduction.

3. Don't delay on your retirement planning, contribute to your retirement account.

It's possible to postpone as much as $17,500 in salary to a 401 (k) plan -- even more if you're 50 years old or older -- up to $23,000. Another option is to contribute the lesser of 25 percent of your pay or $52,000 to a SEP.  You can contribute $57,500 if you're at least 50 years old.

4. Take advantage of deductions for business expenses on your vacation.

5. Entertain your customers for a 50 percent deduction on meal and entertainment expenses.

6. Celebrate the holidays with your employees. You can deduct 100 percent of the expenses if you include all employees.

7. Plan on recovering your money if you forecast an S corporation loss. If you anticipate a loss, you can either lend your S corporation money now or add funds.

8. Start a new company. By launching a startup by the end of this year, you can write off up to $5,000 in expenses. If your expense are greater, you can amortize the balance for the succeeding 189 months.

But your startup has to be more than just a hobby. You must have proof your goal is to generate profits.

9. Make any needed minor repairs. They are deductible. Note the difference, however, between repairs and improvements. The IRS limits what qualifies as minor repairs.

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