Small Business Taxes & Management


Year-End Checklist


Small Business Taxes & ManagementTM--Copyright 2017, A/N Group, Inc.




This is a short year-end checklist of business and personal action you should consider before December 31. For more detail on year-end planning, see our articles Year-End Planning--Part 1--2017 Basics, Year-End Planning--Part 2--Businesses and Year-End Planning--Part 3--Individuals (to be released). Please use the checklist with caution. These are items to consider, not necessarily act on. While it's anticipated that tax rates will decline next year, and most taxpayers will want to take deductions this year, nothing is final and, depending on your business and personal situation, you could be in a higher bracket even if rates are cut. For example, you may be having a dismal year and may not want to increase your basis in your S corporation to take the loss this year, preferring to defer it to 2018. Consult your tax professional for help.


Year-End Actions to Consider--Individuals

___Review stock portfolio, balance
___Take unrealized stock losses to offset gains
___Take gains to utilize losses
___Convert regular IRA to Roth
___Pay real estate, personal property, estimated income taxes
___Pay mortgage, other deductible interest
___Make charitable contributions (consider appreciated stock)
___Use donor advised fund for charitable contributions if appropriate
___Gifts to children/relatives under the $14,000 threshold
___Alimony payments
___Take required minimum distributions if necessary
___Review home office expenses
___Review alternative minimum tax status
___Consider hobby loss rules for side business
___Use remaining flexible spending account amounts
___Make tuition payments


Year-End Actions to Consider--Businesses

___Review loans to/from business, related parties
___Pay salaries S corp. shareholders
___Consider employee bonuses
___Take required actions that must be recorded in company minutes
___Pay intercompany, related party expenses (e.g., rent, interest, etc.)
___Cash basis businesses pay expenses
___Settle expense accounts with employees (cash basis)
___Equipment purchases, leasehold improvements, etc. (placed in service by Dec. 31)
___Take dividends/distributions from business
___Pay taxes
___Sell or abandon unusable equipment for loss
___Sell or dispose of obsolete inventory
___Set up SEP
___Pay open items (cash method of accounting business)
___Consider income and balance sheet positions for reporting purposes
___Check basis/amount at risk in S corporations, LLCs, partnerships, sole proprietorships
___Collect on outstanding receivables (cash basis business)


Copyright 2017 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject. Copyright is not claimed on material from U.S. Government sources.--ISSN 1089-1536

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--Last Update 12/12/17