As 2023 draws to a close, the time to consider tax-saving opportunities for you and/or your business is before year-end. You may want to consider opportunities to reduce or defer your annual tax obligation. Please call your Machen McChesney trusted advisor today if you need assistance with year-end tax planning. 

Table of Content

1. Key 2024 Inflation-Adjusted Tax Parameters for Small Businesses and Their Owners
2. A Company Car Is a Valuable Perk but Don't Forget About Taxes
3. 2023 Year-End Guide - Tax Accounting Methods
4. It's Important to Track Tools and Small Equipment
5. A Cost Segregation Study May Cut Taxes and Boost Cash Flow
6. Giving Gifts and Throwing Parties Can Help Show Gratitude and Provide Tax Breaks
7. 2023 Year-End Reminders Regarding Common Fringe Benefits
8. Are You Ready For Year-End Inventory Counts?
9. What's New at Machen McChesney

Key 2024 Inflation-Adjusted Tax Parameters for Small Businesses and Their Owners

The IRS recently announced various inflation-adjusted federal income tax amounts. Here’s a rundown of the amounts that are most likely to affect small businesses and their owners. Continue reading.

A Company Car Is a Valuable Perk but Don't Forget About Taxes

One of the most appreciated fringe benefits for owners and employees of small businesses is the use of a company car. This perk results in tax deductions for the employer as well as tax breaks for the owners and employees driving the cars. (And of course, they enjoy the nontax benefit of using a company car.) Even better, current federal tax rules make the benefit more valuable than it was in the past. Continue reading.

2023 Year-End Guide - Tax Accounting Methods

A taxpayer’s tax accounting methods determine when income is recognized and costs are deducted for income tax purposes. Strategically adopting or changing tax accounting methods can provide opportunities to drive tax savings and increase cash flow. However, the rules covering the ability to use or change certain accounting methods are often complex, and the procedures for changing methods depend on the mechanism for receiving IRS consent — that is, whether the change is automatic or non-automatic. Many method changes require an application to be filed with the IRS prior to the end of the year for which the change is requested. Continue reading. 

A Cost Segregation Study May Cut Taxes and Boost Cash Flow

Is your business depreciating over 30 years the entire cost of constructing the building that houses your enterprise? If so, you should consider a cost segregation study. It may allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. Continue reading. 

Giving Gifts and Throwing Parties Can Help Show Gratitude and Provide Tax Breaks

The holiday season is here. During this festive season, your business may want to show its gratitude to employees and customers by giving them gifts or hosting holiday parties. It’s a good time to review the tax rules associated with these expenses. Are they tax deductible by your business, and is the value taxable to the recipients? Continue reading.

2023 Year-End Reminders Regarding Common Fringe Benefits

As 2023 draws to a close, employers should review whether they have properly included the value of common fringe benefits in their employees’ and (if applicable) 2% S corporation shareholders’ taxable wages. This is especially true for 2023 and beyond, as many employers continue to deal with remote or hybrid workforces. Continue reading.

Are You Ready For Year-End Inventory Counts?

As year-end approaches, it’s time for some calendar-year businesses to perform physical inventory counts. This activity is more than a time-consuming chore; it’s an opportunity to improve your company’s operational efficiency. Here are some best practices as you prepare to count your inventory, as well as guidance on how to get more from these counts. Continue reading.

What's New at Machen McChesney?

Sponsorships, new hires, announcements
Continue reading. 

We hope you found value in The Value Report you've received this month. We look forward to finding even more ways to Return Value to you in the future.