Future Tax Planning as a Business Owner…

A checklist for proper tax planning for businesses

 
  1. Do you have a projection of your income (including business profits) for this year?

  2. Do you know how much estimated tax you should be paying?

    Depending on your income activity:

    • 90% of current year’s tax – if your income significantly decreases from the prior year.
    • 100% of prior year’s tax – if your income stays the same or if your income significantly increases from prior year.
    • 110% of prior year’s tax if prior years AGI is > 150,000 – if your income stays the same or if your income significantly increases from prior year.

  3. Are you sure that what you’re doing now is compliant with IRS rules, without being too conservative?

    Underpayment causes costly penalties, but overpayment reduces your current cash flow unnecessarily.

  4. Do you know the different ways you can pay your estimated tax?

    Federal estimated tax coupon | Through your withholdings prior to year-end with your W2 Brokerage accounts | Interest & Dividends | Capital Gains | Pension/retirement withholdings

If you answered ‘no’ to one or more of these questions, you may be at risk for penalties, or at risk of paying too much, too soon!

Contact CLM to Set Up a Pre-Discovery.

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