(*5*)
It’s the holiday season and also you’re probably already feeling short on money. Nonetheless, now’s one of the best times of the year for business shopping.
Why?
Because holiday sales tend to drive prices down AND you may potentially lower this year’s tax bill with deductions.
But before you spend your entire savings account, remember this rule of thumb:
In the event you need it, please buy it now. In the event you don’t need it, please do not buy it.
Undecided if it is a “good” buy? Read more here:
You furthermore may need to know these few technical details:
- The payment have to be registered by December 31 at the latest. (Receiving an invoice will not be enough).
- You do not really need to have the item(s) in hand.
Okay, so let’s get shopping!
(*5*)
**Note: I’m not an accountant and while this is mostly good advice, it is best to all the time seek the advice of your accountant or financial advisor to learn how best to minimize your tax.**
1: Electronics
In the event you need a latest computer, laptop, cell phone, tablet, printer, Wacom tablet, etc., the time has come!
Electronics have historically been heavily discounted for Christmas and post-holiday sales to make way for next year’s models.
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2: Software and Applications
Get the latest version of creative software, update your operating system, renew your MailChimp (or similar) subscription, or buy a productivity app that caught your eye.
3: Office furniture and decor
This includes desks, chairs (very essential to find a cushty one!), artwork, storage, shelves, and the like.
4: Office supplies
These are frequently quite small purchases, but every little bit helps.
And do not forget printer ink, which may add up for those who buy enough to last an entire year (even when it’s just 2 cartridges!).
5: Marketing
In the event you are going to buy places in publications or create a latest website, pay for it now!
Not only will you get a deduction from this year’s tax bill, but you will also force yourself to undergo it as a substitute of putting it off since you’re too busy.
Why it makes financial sense
Perhaps you are saying, “What about next year’s tax bill? Am I kicking that may on the way?
YES. Yes you might be.
But that is the whole tax game: pay the lowest taxes you may this year and worry about next year next year.
Hopefully something will eventually come up (corresponding to needing a latest automobile or changing your tax code) that may wipe out several years of shifting your tax bill.
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How are you minimizing your tax bill this year?
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