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Patrick O. Oswald
Patrick O. Oswald, Wealth Advisor
Category: Finance
Satisfied Customers: 14
Experience:  20 years experience on wall street with both major and boutique investment banking firms
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In a small business at the end of the year and you have alot

Customer Question

In a small business at the end of the year and you have alot of cash what is out there so you dont pay alot of taxs other than bonus
Submitted: 3 years ago.
Category: Finance
Expert:  Megan C replied 3 years ago.

Megan C :

Thank you for your question, and thanks for using JustAnswer.com. How are you today?

Megan C :

There are a couple things you can do to lower your taxes. You can invest in assets of the company, and take advantage of accelerated depreciation such as Section 179 and bonus depreciation.

Megan C :

You can start or contribute to a retirement plan - that will help lower your income

Megan C :

You can make charitable contributions.

Megan C :

You can prepay expenses - go ahead and get stocked up with supplies and pay your fourth quarter payroll taxes during this calendar year instead of next year so that you can use the deduction this year.

Megan C :

These are some of the things that you can do to use up your cash and reduce your taxable income.

Megan C :

You can read a good article about this, HERE.

Megan C :

Do you have any further questions about this matter? Is there anything else I can be of assistance with today?

Megan C :

If not, please rate my response as "excellent" so that I may receive credit for assisting you today

Expert:  Megan C replied 3 years ago.
Ned,

I see we were having problems in live chat. I'm sorry that we could not talk back and forth! However, you can still contact me using the "reply" button below and we can have a conversation that way.

Please review my response. If you have further questions, please reply below. Otherwise, please rate as "excellent" so that I may receive credit for assisting you today. Thanks again for being a valued JustAnswer.com customer.

Thanks again!
Customer: replied 3 years ago.
Is there anything that can be done on work in progess as far as material and labor
Expert:  Megan C replied 3 years ago.
Thank you for your follow up. Even with cash basis tax payers, materials and labor used to produce items are not expensed until the goods are sold. So, you could not pre-purchase materials etc.

I realize this is not ideal in your case. Please don't shoot the messenger! Let me know if you have further questions. If not, please rate as "excellent" so that I may receive credit for assisting you today.
Expert:  Megan C replied 3 years ago.
Thanks for allowing me the opportunity to help you. Please let me know if I can be of any further assistance to you in this matter. I really enjoyed working with you – please feel free to request me again when you come back to ask another question. Simply enter "MyVirtualCPA" in the subject of your question Thanks again for being a JustAnswer customer
Expert:  Megan C replied 3 years ago.
,
Expert:  Patrick O. Oswald replied 3 years ago.
you could contribute to a retirement plan and defer some of the tax that way. If you have any losses, or items to depreciate you could also lower your tax rate. Depending on the amount it may be in your best interest to see an accountant.. That amount being 10,000.00 ++

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