Tax savings strategies for a small business
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My wife comes to me with the following tax saving strategies:
Computer Consulting received $7900 from customers in the last week of December. Can she just hold on to the money and include it in January 2005 receipts?
She would like to purchase a car in the name of Computer Consulting. What are his options?
She would like to employ Jim and Rosa in his computer business.
Comment on whether these would be good tax strategies.
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Solution Summary
The solution presents a paragraph in response to each question about income and expense reporting for a small business. The explanations provide possible consequences in using certain strategies.
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With the assumption that this is an unincorporated business reporting on a Schedule C, the following responses would be appropriate:
The $7900 of receipts can be held over, but it isn't right and they would be moved back to December if discovered. Granted it is a common practice which also makes it a common area for audit. IRS and State auditors perform cut-off ...
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