San Luis Obispo Business
September, 1999

Small Business Corner

Year-end Tax Strategies By Jeanne Potter, CPA

With the economy still in high gear, many Chamber members are finding 1999 to be one of the most profitable years in a decade. Although December 31 is still three months away, savvy business owners know the moves they make today can mean a slimmed-down tax bill come next spring. That's why we're devoting the last "Coffee Talk" session of the millenium to Year-end Tax Strategies.

Here are just a few of the topics we'll explore in greater depth at our meeting with Jeanne Potter, CPA, of Glenn, Burdette, Phillips & Bryson on September Friday, September 24.

Inventory: who needs it? It sucks up cash and swells your taxable income. As year end approaches, evaluate inventory in light of projected needs and mark down for quick sale, throw away or give away what has no recoverable value.

Review Accounts Receivable and face the music on those you'll never collect. Write off bad accounts now instead of paying unnecessary tax on them.

Take full advantage of generous first-year expensing elections – up to $19,000 can be written off this year when spent on equipment used in your business.

Retirement plans: Implement a plan if you don't have one in place and review plan assumptions if you do. Many plans can be restructured to provide a better mix of benefits for long-term employees.

Position your business to take advantage of tax credits – R & D, work opportunity, disabled access credits, etc. may be available to you but their use depends on your documentation.

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