2019 Year End Income Tax Planning for Your Business

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2019 Year End Income Tax Planning for Your Business

As year-end approaches, it is a good time to think of planning moves that may help lower your business’s tax bill this year.


Below we have compiled a list of items that may help save or defer tax if taken into account before the end of 2019.

  • Consider acquisition of capital equipment that may qualify for 100% first year bonus depreciation and/or Section 179 first year expensing elections.
  • Passthrough entities (S corporation or partnership) and sole proprietors: you may qualify for a 20% deduction of your business Beware: many limits and exclusions apply.
  • Maximize your contributions to retirement plans and consider year-end accruals for any contributions deductible in 2019 but payable in 2020.
  • If you anticipate a tax loss for 2019, consider new limitations on the deductibility of net operating losses and “excess business losses” in future years.
  • Review your basis in passthrough entity businesses to assess your ability to deduct any current year losses.
  • Determine any deductible accrued bonuses at year end, but payable in 2020.
  • Determine if there is any opportunity to accelerate or defer income and/or deductions between 2019 and 2020.
  • 2019 may be the last year to utilize the Paid Family and Medical Leave credit and the Work Opportunity credit.

Please visit our website for additional details of the above noted items in addition to other potential year end planning opportunities. You should examine any tax planning options thoroughly before initiating action. We are happy to discuss these with you and tailor a tax plan that will work best for you.