With signs of fall in the air, it’s time to start thinking about things that need to be done to prepare for winter. The garden harvests are rolling in, fresh vegetables are everywhere and it’s really, really great. Time to fill up your oil tanks before the price change, and at least know where those snow tires are in the back of the garage. It’s also time for tax planning.
There are so many things in the tax code that have time limitations. It’s really time to check in with yourself if you want to actually participate in your bill with the IRS. Taxes can be very much within people’s control, even though they don’t feel that way. If you’re still out on extension, heads up — you have barely a month, so it’s time to finish whatever you have been putting off, and get that stuff into a tax office.
Some people might say “Well, I have until October 15th this year.” Remember, October 15th is the final filing day, so you should attempt to e-file no later than October 14th, in case there are problems. And that means you probably should have your stuff at your CPA done and reviewed the week before. You’re running out of time!
Also, if you’re planning on funding any business related retirement accounts — SEPs, Keogh Plans, anything other than an IRA — this year, those documents have to be in place very, very soon. You don’t have until April 15th to do anything other than fund personal IRAs. If you’ve been thinking about setting up an account for your business that you can fund with much more than an IRA contribution, the paperwork has to be done and in soon, and the funding often has to happen before the end of the year!
Lastly, there is the overall common sense that if you do a pro-forma return for this year, based on nine months’ income, you can now start to look at just how much tax you may owe by the end of the year, with time to make adjustments. Like start shopping for equipment for your business that you can fully deduct, or other proactive business purchases. The problem is if you don’t know you need to make the adjustments, then how are you going to make them with confidence and with time to think about what you’re about to do?
Bottom line. If you’re on extension, get that 2023 return filed ASAP, then visit with your tax planner to work on optimizing your 2024 tax outcomes.
