Last Minute Tax Tips for Manufacturers (Businesses)
If you are looking for Last Minute Tax Tips on April 15th, then it most likely is too late. Your business taxes most likely have already been completed or you’ve filed for an extension. I even doubt if your accountant or financial planner is answering the phone today as they finish the work they already have. Although I am NOT an accountant and I DON’T play one on TV, here are some tax tips.
- Retirement Account – You have until April 15th to make a contribution to your IRA or SEP-IRA from your profits and not pay income taxes on this contribution until you withdraw money from your IRA or SEP-IRA.
- Inventory – If you have some inventory that you can’t sale or that is damaged, make sure you write this off for 2008. Do a thorough review of your inventory to make sure you maximize this deduction.
- Expenses – make sure any expenses you charged in December 2008 on your Visa, Mastercard, etc. are added to your business expenses for 2008 if you use the cash accounting method.
- Expenses – How many expenses have you labeled as Entertainment for 2008. Entertainment is only 50% deductible while advertising and some other expenses are 100% deductible. The point is only categorize an expense as Entertainment, if and only if it is Entertainment.
- Expenses – I am a big believer is continuous education. What you learned yesterday may not help you win tomorrow. If you enroll in classes that assist you in operating your business, you may be able to deduct tuition, fees, books and even travel. Talk to your accountant. (Maybe not today…but when they start answering the phone in a few weeks.)
- Expenses – As my kids have gotten older and have started looking at me as an ATM machine they want to withdraw money from constantly, I have hired them in one of my companies. You can pay children under 18 as much as $5,700 per year; this amount is 100% deductible and they will owe no federal or social security tax on the money.
- Manufacturing Deduction – ask your accountant if you quality for the 6% manufacturer’s deduction. Some software companies, engineering, construction and manufacturers are elgible for this 6% deduction.
As I mentioned, since I am not an accountant and I did not stay at a Holiday Inn Express last night, talk to your accountant/financial planner to see if any of these ideas will work for you.
Agent Technologies, Inc.
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The Consumer's Workshop: the future of American manufacturing
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|In This Issue
|Last Minute Tax Tips for Manufacturers (Businesses)
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|Manufacturing Statistics April 2009
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1) Manufacturing Output decreased 0.8%in February 2009 with durable goods down 1.2% and nondurable industries fell 0.4%.
Source: Federal Reserve Board
2) Manufacturing Employment fell by 161,000 jobs in March 2009.
Source: Bureau of Labor Statistics
3) Manufacturing Trade Deficit in February 2009 decreased $10.1 billion, or 21.5%, to $36.9 billion. Sources: Census Bureau, Bureau of Economic Analysis
4)Manufacturers' New Orders in February 2009 increased $6.1 billion, or 1.8%, to $352.2 billion. Source:Census Bureau
5) Manufacturers' Inventories decreased $6.2 billion, or 1.2 %, to $529.7 billion. Source: Census Bureau