Tip - save on taxes by pre-ordering / prepaying expenses now

[raymor]

Just a tip for people who may not know and a reminder
for those who do. For most webmasters, the tax year
will be ending in three weeks, so to minimize your
taxes you'll want to take care of any business expenses now.
That'll get your taxable income down, which will reduce
your taxes. It might be a good idea to even take a quick
look to see if you're right on the border between two tax brackets.
If you are close to a higher bracket, it can definitely save
you a lot of money to spend a bit to stay in the lower bracket.
Buying some content, prepaying for scripts like Strongbox,
or whatever other expenses you can take now could save
you thousands of dollars.

[RawAlex]

Originally Posted by raymor

Just a tip for people who may not know and a reminder
for those who do. For most webmasters, the tax year
will be ending in three weeks, so to minimize your
taxes you'll want to take care of any business expenses now.
That'll get your taxable income down, which will reduce
your taxes. It might be a good idea to even take a quick
look to see if you're right on the border between two tax brackets.
If you are close to a higher bracket, it can definitely save
you a lot of money to spend a bit to stay in the lower bracket.
Buying some content, prepaying for scripts like Strongbox,
or whatever other expenses you can take now could save
you thousands of dollars.

This would be more true is you expect to make less money next year, otherwise you are trading reduced taxes today for increased taxes next year (because you shifted out expenses from one year to the other).

This would be doubly bad if you expect income to increase next year, as whatever you save this year might be lost even more over next year if you move up a grade in taxes.

[EmporerEJ]

Now that's a hell of a marketing plan...

[TheEnforcer]

Perfect time to buy advertising on Oprano and the other 5 places I represent!!

[ScreaM]

Thanks for the tips, Ray.

[raymor]

Originally Posted by RawAlex

This would be more true is you expect to make less money next year, otherwise you are trading reduced taxes today for increased taxes next year (because you shifted out expenses from one year to the other).

This would be doubly bad if you expect income to increase next year, as whatever you save this year might be lost even more over next year if you move up a grade in taxes.

If you expect to be in a higher tax bracket next year, it could cost you a little more next year,
though even in that case it's like paying a bit of interest on a loan - it could make good sense.
If you plan to incorporate next year, or buy a house, have a baby, etc., so that your tax situation
is better next year than it's a doubly good idea to take what expenses you can now.

[RawAlex]

Originally Posted by raymor

If you expect to be in a higher tax bracket next year, it could cost you a little more next year,
though even in that case it's like paying a bit of interest on a loan - it could make good sense.
If you plan to incorporate next year, or buy a house, have a baby, etc., so that your tax situation
is better next year than it's a doubly good idea to take what expenses you can now.

It also depends on what you are buying. Computers and such are run off over 3 years, so you can't claim the full value this year. In theory, content should also be depreciated over a period of time, rather than taken as an expense, as it does become inventory and not "lost". Programming or website design is even more complicated, as it is considered a work product with value, and should be depreciated over at least a 2 year period (or written off at the point that it is no longer in use).

[TheEnforcer]

Just buy some advertising fro me. Nice easy deduction there.

[gonzo]

Originally Posted by TheEnforcer

Just buy some advertising fro me. Nice easy deduction there.

Creative spam isnt very effective these days.
Most of us know Pennywize but I dont know Strongbox.

I suppose we wont learn nothing about it either until the next drive by.