Even though the end of 2007 is rapidly approaching, there is still time to save or defer taxes in 2007.  Recent legislation and changes in tax laws provide significant opportunities to reduce your tax burden.  To see how these can be effective for your company, please read on.
TIP 1:
    Cash basis businesses can smooth out their taxable income by deferring income to 2008.  Businesses can delay billing clients for services or products so that payment is not received until 2008.  Alternatively, if you anticipate your business’s taxable income to be higher in 2008, you may want to accelerate income in 2007 and defer deductions until next year.
TIP 2:
Most small businesses are eligible for the Code Section 179 deduction, a generous and lucrative tax break that enables businesses (especially capital intensive) to immediately deduct up to $125,000 in 2007 for equipment purchases that otherwise would have to be depreciated over a number of years. 
To qualify for the deduction, equipment must be used more than 50 percent for business purposes and must be in use by December 31, 2007.  The deduction applies to new and used equipment, as well as computer and software purchases.

These are just a couple of the many tax planning strategies businesses can use to save or defer their tax burden.  We can talk to you about these and others that can be implemented before year-end:
•    Manufacturing deduction – construction, engineering, architecture firms – all benefit
•    Loss deductions – losses sustained can be deducted if your business has not been compensated by insurance or otherwise.
•    Start-up costs – new businesses can deduct start-up costs up to a certain amount.
If you’d like to learn more about any of these tips above and whether or not your business can benefit from these and many other strategies, please call or email us.