Chicago Community Ventures Blog

Historic Black Metropolis Business District - Shop Local and Often!

 

 

 

Year End Tax Tips

Today's post is by guest blogger, DeAnna Grant of Grant’s Financial Services, who provides Accounting, Taxes and Consulting for Small Businesses. Ms. Grant is passionate about the success of small business, so we tapped her brain for ideas about what small businesses should be doing since the year is coming to a close.  

 

 

 

1.        Get Organized

Update your accounting records:  It is important as part of your year-end tax strategy to have a good understanding of your company’s financial situations.  It won’t hurt to plan time with your accountant for year-end advice, particular to your operations.  Gather your personal records including: 

o   Bank Statements

o   Credit Card Statements

o   Invoices for Fixed Asset Purchases over $ 1000

o   Vehicle Mileage info

o   Information for 1099’s (vendors paid over $600 annually)

o   Avoid IRS Late Filing Penalty

 

2.        Minimize Taxes Owed, Maximize Deductions

Make year-end purchases for your business.  Purchase items that your business will require in the immediate future.  Consider the following items:

• Office Supplies
• Paying bills early:  cell services, subscriptions, rent, insurance, and utilities
• Equipment purchases

 

3.       Take advantage of increased small business expensing

For 2010 and 2011, businesses can benefit from enhanced Code Sec. 179 small business expensing. Congress increased the amount of qualifying property that business that immediately expense to $500,000 (up from $250,000) for tax years beginning in 2010 and 2011. This amount is reduced dollar for dollar to the extent the cost of the qualifying property placed in service during the year exceeds $2 million (increased from $800,000). The increase in the expensing cap from $800,000 to $2 million for 2010 (and 2011) effectively opens up the availability of Code Sec. 179 expensing to many more businesses. If you have bought qualifying property - even computer software qualifies - or plan to buy property, consider doing so now to take advantage of the immediate tax benefit. You can also do so again in 2011, when tax rates are expected to be higher.

Also included in the definition of qualified Code Sec. 179 property (only temporarily though) is qualified real property, which is defined as qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property. However, businesses are limited to expensing of up to $250,000 of the total cost of these properties. The dollar cap applies to the aggregate cost of qualified real property.

 

4.        Shift and Split Income

 Any payments your company can receive during the first week of January as opposed to December cuts your tax bill.  Any deferral strategy will depend on your profit and losses for the year and the business legal structure (LLC, partnership, corporation, etc.)  Split income by employing your children.  Your child’s wages are fully deductible as a business expense.  The income splitting tax strategy lets you take full advantage of the marginal tax disparities.  This is an especially powerful tax strategy for small business owners with children of post-secondary school age. 

 

5.       Contribute to Retirement Account

Make payments to your retirement plan or set one up before the year-end to reduce your income for this year. Check the contribution limits for your type of plan. In the U.S.: 401(k), KEOGH plan, Roth IRA, or SEP's. Discuss the best strategy with your financial planner or accountant.

 

6.       General Business Tax Credits

There are several business tax credits that are available such as:  Empowerment and Renewal community employment credit, energy efficient appliance credit, work opportunity credit, new markets tax credit, credit for employer social security and medicare taxes paid on certain employee tips.   See instructions for IRS form 3800.

The tax tips in this newsletter are of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.

 

Grant's Financial services offers a wide range of services including, but not limited to Bookkeeping, payroll, Quick Books support and training, and business and individual tax.  Call us today 312-498-6580 or email deanna@grantsfinancialsvcs.com

City of Chicago Monthly Business Education Workshop Schedules

The Department of Business Affairs & Consumer Protection (BACP) offers workshops every Wednesday and Friday.  Workshops will vary each month and are conducted by City Officials, experts and partner business organizations.  All workshops are free, and open to the public.  Workshops are held at BACP's offices located at 121 N. LaSalle St., City Hall Room 805, Chicago, IL  60602. 

Business Start-Up Certificate Program

BACP is also offering a program designed to give business owners the essential elements in starting and growing a business.

• Attend nine workshops at BACP and earn a Business Start-Up Certificate.
• Learn the essentials in business planning, financing, marketing, legal issues, technology and more.
• Participation is free and optional.
• Complete the program workshops within six months and walk away with a certificate issued by the City Colleges of Chicago.
• Earn your certificate and get free expert advice on your business plan.
• Register for the Business Start-Up Certificate Program at any BACP workshop.

For more information or to register for a workshop call 312-744-5344. Click here for the schedule

CCV Client In the News: Ineeka tea grown in India, shipped in Chicago

 

 

December 3, 2010 (CHICAGO) (WLS) -- Their farm may be in India, but this Chicago company has made a name for itself in the epicurean world.

Ineeka Teas, headquartered in Chicago's West Loop, are premium, whole leaf teas grown in the Himalayans of India.

" We have established ourselves in the world tea market as the highest level quality of tea," said Shashank Goel, owner, Ineeka Teas.

This tea company has won just about every honor possible in its segment of the food and beverage industry. Goel says quality is not the only thing that sets Ineeka apart.

"We're the only tea company in North America that actually owns our own farm. Our farms are located in the Himalayas and the farms are all organic," said Shashank.

The company's 15 farms in India give back as much to the earth as they take from it with sustainable practices in every phase of the operation from planting and harvesting to shipping. The tea is packaged and distributed in Chicago.

"I was born on a tea farm and my wife also comes from a tea background," said Goel.

So how does an award-winning premium tea company end up in Chicago? Goel and his wife fell in love with the city while she was studying at the art institute. She designed all the packaging utilizing pictures from their own families. They are constantly traveling back and forth to India

"Ineeka means 'little earth' and the whole concept is why we cannot change the world, we're making a difference and with 25,000 people and all the people we connect to," said Shashank. And those consumers include high-end retailers all over the world.

Goel says what really sets his tea apart is that they don't add oils or flavorings. The taste is just the way the tea is grown on their farms in India.

Ineeka Teas, , are sold at several retail outlets in Chicago, including Whole Foods.

 

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