{"id":30213,"date":"2017-11-08T13:19:12","date_gmt":"2017-11-08T18:19:12","guid":{"rendered":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/?p=30213"},"modified":"2017-11-09T12:06:54","modified_gmt":"2017-11-09T17:06:54","slug":"small-business-owners-consider-accelerating-expenses-delaying-receipts","status":"publish","type":"post","link":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2017\/11\/small-business-owners-consider-accelerating-expenses-delaying-receipts\/","title":{"rendered":"Small Business Owners Should Consider Accelerating Expenses, Delaying Receipts"},"content":{"rendered":"
\"\"
Robert Ricciardelli, a CPA and partner at Whittemore, Dowen & Ricciardelli, says a company about to make large investments in a plant or equipment should get a cost segregation study done.
Photo by Jesse Winters<\/figcaption><\/figure>\n

By Jill Nagy<\/p>\n

Despite uncertainty about the fate of the U.S. tax code,\u00a0 advice from accountants for year-end tax planning remains similar to what it has always been: Try to accelerate expenses and delay receipts.<\/p>\n

If anything, the prospect of possible reductions in tax rates and the elimination of some tax deductions, gives greater credence to that advice.<\/p>\n

\u201cThere are a lot of unknowns,\u201d said James E. Amell, a CPA in the Queensbury office of Marvin & Co. He expects corporate tax rates to come down but predicts that the Republicans in Congress will not make radical changes.<\/p>\n

\u201cThey want some durability in what they do,\u201d he said. \u201cThey don\u2019t want to see everything changed again when the control of Congress changes.\u201d<\/p>\n

Robert Ricciardelli, a CPA and partner at Whittemore, Dowen & Ricciardelli, also in Queensbury, agreed. \u201cIt looks like something is going to get done,\u201d he said. \u201cIt is tough to plan.\u201d<\/p>\n

Defer income, he advised, \u201ceven more so than usual.\u201d<\/p>\n

Deferring income until 2018 also defers the taxes on that income, possibly into a year when rates are lower. \u201cHold off on some of you billing,\u201d Amell said.<\/p>\n

<\/p>\n

For a company about to make large investments in a plant or equipment, Ricciardelli advised beginning with a cost segregation study to identify portions of the investment that may be eligible for an immediate write-off or a reduced-depreciation period. The study must be performed by a professional, usually an engineer, he said.<\/p>\n

In any case, buy new equipment in 2017 instead of waiting until 2018, he said.<\/p>\n

Amell said in some cases, the lead time for the purchase, receipt and installation of new equipment may be too great to be able to complete the transaction this year. A new computer or motor vehicle could arrive in time; other items may not.<\/p>\n

If faced with a tax bill due in January, consider paying it in December. Ricciardelli also suggested maximizing contributions to 401(k) or profit-sharing plans, if the business ends the year with profits.<\/p>\n

Both suggested paying larger bonuses or making generous contributions to Health Savings Accounts (HSAs). Be sure employees know that these are one-time additional contributions that may not be repeated in future years, Amell added.<\/p>\n

Both experts advised looking at alternative scenarios to account for the uncertainty about the future tax situation.<\/p>\n

\u201cBe prepared to execute during the last two weeks of December,\u201d Amell said.<\/p>\n

He emphasized that his advice applies primarily to businesses that operate on a cash basis, i.e., account for expenses as they are paid for and income as it is received. For a company operating on an accrual basis\u2014accounting for items when payment is due rather than when it is made or received\u2014the timing makes no difference.<\/p>\n

The trend of a proposed tax plan is that it will reduce, rather than increase, taxes. Amell said, \u201cIt can only be an improvement.\u201d<\/p>\n

\u201cDon\u2019t make a stupid economic decision just to save on taxes. Don\u2019t buy something you don\u2019t need just to save on taxes,\u201d said Amell.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Jill Nagy Despite uncertainty about the fate of the U.S. tax code,\u00a0 advice from accountants for year-end tax planning remains similar to what it has always been: Try to accelerate expenses and delay receipts. If anything, the prospect of possible reductions in tax rates and the elimination of some tax deductions, gives greater credence […]<\/p>\n","protected":false},"author":89,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23,52],"tags":[],"yoast_head":"\r\nSmall Business Owners Should Consider Accelerating Expenses, Delaying Receipts - Glens Falls Business Journal<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2017\/11\/small-business-owners-consider-accelerating-expenses-delaying-receipts\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Small Business Owners Should Consider Accelerating Expenses, Delaying Receipts - Glens Falls Business Journal\" \/>\r\n<meta property=\"og:description\" content=\"By Jill Nagy Despite uncertainty about the fate of the U.S. tax code,\u00a0 advice from accountants for year-end tax planning remains similar to what it has always been: Try to accelerate expenses and delay receipts. 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