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Wealth Health Managing Director Rich Coppa offers year-end tax planning advice for small business owners.
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Right small business owners listen up my next guest says now is the time.
To take advantage of their deductions and credits we'll have you paying less taxes next year.
He also -- tax hits for non business owners as well rich -- is the managing director for wealth health.
And specializes in advising wealthy executives business owners rich great to have you back on the show nice to see -- you say here is go.
And some garments and spend some money get the section -- -- -- deduction which is allow that but it's actually generous deduction or expensing items for your business such as computers manufacturing equipment furniture software.
That allowed to have the 500000 dollars of a deduction as long as you spend below two million dollars.
In new purchases so I think this is the time to do that because next year that's going down about 25 75% down to about a 125000.
As the maximum that the -- to lock them before they -- -- -- before -- -- -- and and it's a great provision to expense guidance.
What about.
Research and development that's the dreaded you know it's been around for about thirty years it's always expiring it's always extended.
Great provision for obtaining the credit 1420%.
To spent depending upon the calculation now there's different methodologies to.
Take that credit.
Remember too it's not just about technology companies in biotechnology companies companies that are trying to.
Produce a product or may be extended or have their product use in different areas of the market can also potentially you're -- More collateral might qualify that -- thinks absolutely talked your countenance find out.
How about charitable giving is that something we always think about where the end of the year you gotta do before December 31 -- it what are your words of warning to people that are my words of one is make sure you have documentation.
-- I see with our clients is that.
Oftentimes you -- that -- donation and then you don't have the right.
The right evidence to take that deduction you do want to have the right evidence so if it's over -- -- -- dollars in cash wanna make sure you have an acknowledgment from the charitable organization if you're donating property if properties in excess of 5000 dollars when an entry of an appraisal for an oftentimes you do it backwards looking you know you try and remember what -- I don't mean you know have pictures of -- don't have the right valuations and do -- while you're making those contributions.
And don't forget appreciated securities because as you know we talk about that off and that's -- and -- it's tricky but in a market like this people may be forgetting about.
The fact that securities may be appreciated their portfolios that help them for a number of years that's a great way that -- remember.
-- is also time to set up a retirement -- look like we're almost holidays it sounds like it's gonna take forever -- -- often did not necessarily depends on what type of plan and that's really the point is to make sure that you do the research and figure out what's the right -- US business owners.
I mean there are easy ways of setting up solo for own -- these states these days you -- do a set plan.
You couldn't even -- just do an IRA but the idea is to take a look now so that impacted you wanna have the paperwork set that plan funded by the end of the year.
Because.
With regard to the four -- case even if your sole practitioner.
Still could have 161500.
Pretax dollars your fifty and older an extra 5500 and catch up.
And many people last year may have changed your contributions so even if you're not looking to set up a new plan but you're participating in one currently.
Take a look make sure your maximizing because you might have reduced Europe.
Pretax contribution last year just to save a little bit in cash flow are rich -- thanks for coming in tonight we really appreciate your time good job as always great decision.
