Is there still time to pay 2018 bonuses and deduct them on your 2018 return?

Is there still time to pay 2018 bonuses and deduct them on your 2018 return?There aren’t too many things businesses can do after a year ends to reduce tax liability for that year. However, you might be able to pay employee bonuses for 2018 in 2019 and still deduct them on your 2018 tax return. In certain circumstances, businesses can deduct bonuses employees have earned during a tax year if the bonuses are paid within 2½ months after the end of that year (by March 15 for a calendar-year company).

Accrual-basis taxpayers: These year-end tips could save you tax

Accrual-basis taxpayers: These year-end tips could save you taxWith the possibility that tax law changes could go into effect next year that would significantly reduce income tax rates for many businesses, 2017 may be an especially good year to accelerate deductible expenses. Why? Deductions save more tax when rates are higher.

Timing strategies could become more powerful in 2017, depending on what happens with tax reform

Timing strategies could become more powerful in 2017, depending on what happens with tax reformProjecting your business income and expenses for this year and next can allow you to time when you recognize income and incur deductible expenses to your tax advantage. Typically, it’s better to defer tax. This might end up being especially true this year, if tax reform legislation is signed into law.