Year-End Business Tax Preparation

There is still time to implement a tax deduction strategy before the tax year officially ends. While West to East Business Solutions is not a CPA firm, we strongly recommend setting up a meeting with your tax accountant to review your tax strategies. Tax accountants keep up with law changes and understand the intricacies of tax deductions, providing you with a sense of reassurance.

At West to East Business Solutions, however, we can help you correctly record all the deductions on your financial statements to ensure a smooth tax season.

Here is a list of deductions to investigate
Employees

Employer tax credit through retirement plans
Employee-related federal tax credits, such as disability credits
Year-end bonuses
Health coverage
Payroll and contactor payments – prepare W-2s and 1099-NECs
Clients

Consider postponing billing customers, clients, or patients until after December 31, 2024. This strategy, applicable to cash-basis accounting, can effectively reduce your taxable income for the current year.
Review outstanding accounts receivables
Collection services or attorney fees are tax-deductible
Equipment

Do you need to repair, replace, or add to your existing equipment? A 60% bonus appreciation is still in place for 2024. It will reduce to 40% in 2025.
Using a business credit card can be advantageous when purchasing equipment for your business. You can deduct the expense from the date the charge appears on your card.
Ask your CPA about bonus depreciation and EV tax credit for 2024.

Building

Prepaying 2025 rent by sending the check on December 31, 2024, so you can take the deduction for 2024 if you need it.
Energy efficiency tax credits: For example, adding solar panels or tint to your windows might qualify you for a tax credit.
If you are building energy-efficient structures for others, it can also give you federal credit.
Operations

Professional fees, such as tax accountant or legal services.
Marketing – 100% deductible, including AI
Rent
Research and Development (R&D)
Insurance
Travel expenses – set per diam rates
Meals – 50% deductible
Inventory
Interest expense
Charity contributions
Excess business loss limitations – keep track of your operating losses
Qualified Business Income (QBI) deductions