As 2020 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. 

As the holiday season approaches, we choose to reflect on and be grateful for our blessings! May your holiday season be filled with joy.

Listen to our message below.

From our family to yours we send you this Christmas message.

Table of Content

1. Cutoffs: What Counts in 2020 vs. 2021
2. The Importance of S Corporation Basis and Distribution Elections
3. Small Businesses: Cash in on Depreciation Tax Savers
4. The QBI Deduction Basics and a Year-End Tax Tip That Might Help You Qualify
5. Year-End SWOT Analysis Can Uncover Risks
6. Keys to Year-End Tax Savings for Businesses
7. Drive More Savings to Your Business With the Heavy SUV Tax Break
8. Put Your Company's Financial Statements to Work for You.
9. What's New at Machen McChesney

Cutoffs: What Counts in 2020 vs. 2021

As the year-end approaches, it’s a good idea for calendar-year entities to review the guidelines for recognizing revenue and expenses. There are specific rules regarding accounting cutoffs under U.S. Generally Accepted Accounting Principles (GAAP). Strict observance of these rules is generally the safest game plan. Continue reading.

The Importance of S Corporation Basis and Distribution Elections

S corporations can provide tax advantages over C corporations in the right circumstances. This is true if you expect that the business will incur losses in its early years because shareholders in a C corporation generally get no tax benefit from such losses. Conversely, as an S corporation shareholder, you can deduct your percentage share of these losses on your personal tax return to the extent of your basis in the stock and any loans you personally make to the entity. Continue reading.

Small Businesses: Cash in on Depreciation Tax Savers

As we approach the end of the year, it’s a good time to think about whether your business needs to buy business equipment and other depreciable property. If so, you may benefit from the Section 179 depreciation tax deduction for business property. The election provides a tax windfall to businesses, enabling them to claim immediate deductions for qualified assets instead of taking depreciation deductions over time. Continue reading.

Year-End SWOT Analysis Can Uncover Risks

As your company plans for the coming year, management should assess your strengths, weaknesses, opportunities, and threats. A SWOT analysis identifies what you’re doing right (and wrong) and what outside forces could impact performance in a positive (or negative) manner. A current assessment may be particularly insightful because market conditions have changed significantly during the year — and some changes may be permanent. Continue reading. 

Keys to Year-End Tax Savings for businesses

2020 has been an unpredictable year. Businesses have faced all-encompassing challenges ranging from protecting employee health and safety to managing unexpected costs to dealing with severe fluctuations in supply and demand for products and services. Some businesses were able to enter new markets and achieve fresh levels of growth, while others had to make tough choices just to endure. Continue reading. 

Drive More Savings to Your Business With the Heavy SUV Tax Break

Are you considering replacing a car that you’re using in your business? There are several tax implications to keep in mind. Continue reading.

Put Your Company's Financial Statements to Work for You.

It’s almost time for calendar-year businesses to prepare their year-end financial statements. If used correctly, these reports can be a valuable management tool. Use them in benchmarking and forecasting to be proactive, not reactive, to market changes. 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.