1. To the extent possible, shift income into next year and accelerate deductions.
2. Review all existing nonqualified retirement plans for your highest paid employees.
3. Determine how state and local taxes and year-end strategies will affect your overall plan, with particular attention to Alternative Minimum Tax (AMT).
4. Consider a compensation and fringe benefit study to see what makes sense tax-wise. For example, "split the difference" on compensation increases by providing benefits that are deductible by the company, but tax-free to the employee.
5. Consider whether your current form of business is still best for you.
6. Avoid payroll taxes by shifting a portion of compensation from salary to fringe benefits. Unreimbursed medical expenses and payroll-deducted group insurance are ideal benefits to include in a Section 125 cafeteria plan.
7. Set up a cafeteria plan to allow employees to pay for their dependent care expenses on a pretax basis. This will generally save them more than they would with the child care credit.
8. Self-employed taxpayers who employ their spouses in the business should investigate the savings opportunities in 401(k) or SIMPLE plans.
9. Establish a 401(k) or SIMPLE program to help attract and retain quality employees.
10. Time purchases of business property to maximize depreciation deductions and avoid the mid-quarter convention.
11. Conduct a cost segregation study to identify and price separately the nonstructural items and land improvements from your building to accelerate depreciation.
12. Switch to an “accountable” plan if you’re currently reimbursing employee business expenses under a “non accountable” plan.
13. Buy business supplies at the end of a profitable year and accelerate other deductible expenditures like repairs and maintenance.
14. Review entertainment, club dues, and meal expense accounts to make sure they are correctly classified to minimize deductions.
15. Review the status of workers as employees or independent contractors.
16. Donate certain items to qualified charities to receive larger deductions.
17. Employ your children if you own your own business to take advantage of several tax benefits.
18. Buy equipment before the end of the year to take advantage of your Section 179 expense deduction.
19. Review the amount of your estimated tax payments.
20. Determine whether you’ll be subject to the AMT this year or in the future.