The end of the year is fast approaching, making it a great time to make a few last-minute moves that can help you save money on your 2019 business taxes. Here are seven ideas that may help you lower your 2019 tax liability just in time for the holiday season:
1) Give Employees Holiday Gifts –According to the Internal Revenue Service, you can deduct $25 per person for employee gifts each year. That’s plenty to send every worker home with a holiday turkey, ham or fruit basket. Or give them a modest practical gift that they will appreciate all year long.
2) Throw a Holiday Party – Your employees will love having a party, and it’s tax-deductible if it’s for employees and their families. Keep in mind that the costs associated with throwing a party for employees and their spouses or significant others are 100% tax deductible. However, if the party’s attendees also include friends, customers, contractors and vendors, the party is not fully deductible.
3) Provide Holiday Treats – If you can’t throw an all-out party, or if you just want to make your business more festive during the holidays, stock up on treats and foods that your employees can enjoy during breaks and at mealtime. Through 2025, employers can write-off 50% of the costs of office meals and snacks.
4) Donate to a Worthy Cause – What better time than the holidays than to give to others that are less fortunate. This is also a season when many charities are very active and seek support, such as Toys for Tots, Angel Tree, and the Salvation Army. You can donate money, but you can also donate items like toys and clothing, as long as you claim the fair market value of these items.
5) Stock Up on Office Supplies – Stock up on office supplies likes pens, pencils, paper, business cards, staplers, tape, hand soap, and printer toner before the end of the year and claim them on your 2019 taxes.
6) Defer Income – If you could benefit from having less income this year and you don’t absolutely need the capital right away, delay sending out bills until the very end of the year. If you don’t receive payment until 2020, you won’t need to count the income for the 2019 tax year.
7) Travel Expenses – If you can squeeze in a few visits with clients and vendors while traveling for the holidays, you can likely claim 100% of your travel expenses on your business taxes. You can typically claim expenses like hotels, flights, rental cars, taxis and tolls.
These are general tips, so be sure to double-check with your accountant or tax professional before making any large purchases or expenditures to confirm that these tax breaks would apply in your specific situation.
