This Year, Manage Your Practice to Save on Your Taxes Happy New Year! Many of you are preparing documents for your 2019 taxes. But January isn’t just about wrapping up the old year. It’s also about preparing for the year ahead. Do you have a plan for how to maximize your cash flow and minimize your taxes for the coming year? Have you consulted your accountant on the timing and tax consequences for your decisions? Here are a few decisions that can influence your taxes and profits in the coming year. Equipment Purchases. Are you planning to purchase new equipment, either as part of a practice expansion or to replace outdated tools? When and how you purchase may influence your taxes. Consider scheduling a consultation with your accountant to maximize the benefits you receive. Staff Training and Inservice Days. Refreshments for staff training are not fully deductible, but refreshments for “Holiday Parties” are. Can you structure upcoming training days to take advantage of the holiday party deduction? Put Your Kids to Work. Hiring your kids to help out with filing, cleaning, or other duties doesn’t just give them an inside look at the business and a value for hard work. It can also confer tax benefits. Your children can each earn up to the standard deduction ($12,400 in 2020) without owing any federal income tax on their earnings. This can be a great way to help your children save for college or other expenses while also minimizing the total taxes your family pays. The one caveat is that they have to do actual, age-appropriate, work, and receive a reasonable wage. So, if you’re paying your child $10/hour to file, that might be reasonable. If you try to pay them $100/hour, you may trigger an audit. Are you looking for more ways to save on taxes in 2020? Check out our client newsletter for tax tips and other business advice.