Well, we’re officially in the holiday season now, as hard as that is to believe.
But let’s be real for a moment: that means 2022 is almost over, and we’re going to be into tax season in less than a month. No, of course you’re not ready to file, and for most of us as business owners and entrepreneurs, we are far more concerned with closing out the year strong.
Here’s some reminders, though, especially if you have employees:
- The deadline for contributions to their 401(k) is December 31st. Now, maybe you have one set up through your company and that’s great – your deadline is the 31st, too. IRAs give you until April 15th…
- Depending on whether you use cash or accrual accounting, NOW is the time to look at deferring income until next year – or going ahead and booking it now. There really isn’t a correct answer for this, but it can help you mitigate taxes, especially amidst all this inflation.
- Another key deadline to remember is that any charitable contributions you’re going to make this year have to be done before the 31st. This can serve to increase your itemized deductions and save a bit, too.
- If you’ve had some significant capital gains this year, it’s also the best time to look at selling off some losses to offset. Yes, it seems like a weird strategy, but it’s a proven one. The alternative for future investments is to hold them more than a year for the longer-term capital gain rates. Yes, this is getting beyond “tax help” and into financial strategy, but at this level? You have to play the game with a strategy.
Lastly, remember all that “Covid” money the government was throwing around two years ago?
Well, those first repayments are going to start coming due soon, and while many firms have recovered and will be happy to repay at the low interest rates they signed for, it still represents a debit to your account.
Now is the time to make sure you’re set up and budgeted for them.
There’s something else I want to share with you.
2022 been an incredibly challenging year – part of a string of them, actually – and the mere fact you’re still with us and still moving forward is a testament to you and your business. Frankly, I’m proud to have clients that continue to dig in and continue to grow.
I want to urge you to not only enjoy all that this season brings, but also, to really sit down in earnest and take the time to plan not only your process for filing away 2022, but the systems and processes that you can use to become more successful (and lower your taxes) in 2023. A lot of that begins with us merely having a conversation.
This week – today – take a moment and let’s schedule a call to make sure you’re set up for success to close out 2022 and get ready for a far better 2023.
All the best-