DEAR SANTA...A LITTLE YEAR END TAX HELP?

barton holiday blog elf wavingIt’s time to wave goodbye to 2018 and say hello to 2019. As we begin another new year, the goal is to be in a place of healthy prosperity from the previous year, and to look towards an even bigger, better year ahead. And as we end 2018, let’s ask our fearless leader, Santa Greg (Santa G for short, because we’re trendy like that), a few questions about how he can help us achieve our 2019 financial goals...


Dear Santa G,

What do I need to do before I close up my 2018 books and prepare for 2019?

Ho, ho, h-excellent question. First order of business – review your past reports. How was your year, financially? Whether business was up or down, did you learn anything to help you create further success for the coming year? Have you let our little elves at bartonCPA help you look through your numbers to make sure they’re up-to-date and accurate? We’d love to sit down with you and walk through your 2018 reports to help you understand the numbers, assist with any explanations you may need, and offer advice for next year.barton blog santa g

Dear Santa G,

Can I defer any income from this year into next year?

Oh, smart thinker. Yes, you may be able to. Depending on what method you use to recognize income, you may be able to defer it into next year. Shifting income until after January 1st delays it from being counted until the following year. This can save you a significant amount of money, depending on where your income levels are each year. Talk to us about this – it can help to cut your 2018 tax bill, and could earn you a jingle bell.

Dear Santa G,

I read in last month’s bartonCPA blog that it’s a great idea to contribute to charitable causes we feel passionate about. Can you tell me more?

This inquisitive thinker, I’m so glad you asked. Not only is making a charitable contribution for your business or personal life an excellent thing to do for your soul, it’s also a great idea for your tax benefits. But check this out: because of the near doubling of the standard deduction, the new tax law has significantly reduced the number of households that can itemize their deductions. But it may pay to itemize. Let Santa G give you an example: instead of donating, say, $5,000 every year - try donating $10,000 in one year and nothing in the second year. If that $10,000 contribution, added to your other deductions, puts you over the standard deduction limit, you’ll benefit. Santa G and his elves can help explain this further, so you make us some cookies, and we’ll crunch you some numbers.

Dear Santa G,

elf on a shelf BartonWe had a tough 2018, and there was a drop in the market value of our product. Can you help us?

YES! My elves and I are always here to help! And I’m sorry about your year. You’ve been a good business person, and deserve some support. Here’s what I would suggest for you: you may be able to claim additional deductions. Check with the bartonCPA team - they love fiddling and tinkering with numbers and seem to never tire of it. Could be all the candy canes. Or Dee Dee.

Dear Santa G,

There are SO many dates I feel I need to know for my federal income taxes for the upcoming year. Can you help me understand?

barton screamOf course. Here are some basic dates you’ll want to be aware of:

  • For sole proprietors and single-member LLC’s preparing their business taxes on Schedule C: April 15, 2019.
  • For partnerships and S corporations: March 15, 2019.
  • For  C corporations: April 17, 2019.
  • For coffee shops: Starbucks. Tall candy cane latte.
  • And REMEMBER: filing an extension is just an extension of time to file your tax returns, but not an extension to pay taxes due.

Dear Santa G,

Last year I was a little disorganized and went into a bit of a panic when it was time to close out my books. What can I do to prepare better for next year?

My sweet, disorganized one. This is a very common problem Santa G witnesses. And I have a solution. Get a jump start now on 2019 by outlining a system you can use to make it a smooth year. Simply-put: call bartonCPA. We love numbers and organization and creating systems. It’s like Rudolph and a cloudy night. You give us the reins, and we’ll light up the sky to help you plan for a better, bigger, more prosperous new year. As long as you include us in your reindeer games.

And from all of us at bartonCPA, as we hope we shed light - Happy Holidays to all, and to all a good night!

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