“This year, more than ever, you need to meet with your tax planner to determine what steps you need to minimize your taxes,” Kopsa says
If you wait until December to do that, you’ve waited too long. Tax planning should be integral to your overall financial plan and should begin January 1, 2015. Our approach is to “plan backwards” – i.e. plan to zero taxable income at December 31, 2015. One caveat, no business decision should be made solely and entirely based on taxes. If it doesn’t make good economic sense, it shouldn’t be done regardless of the tax consequences. — jtl
Once the clock strikes midnight on Dec. 31, it will be too late to implement any strategies to reduce your tax bill to Uncle Sam. Check out these tax planning tips to determine any final steps you can make for 2014.
“You must pay taxes. But there’s no law that says you gotta leave a tip,” said Larry Kopsa, CPA, in a recent webinar hosted by the National Cattlemen’s Beef Association (NCBA). Kopsa, a Nebraska-based accountant, was referencing a quote used in an advertisement by Morgan Stanley, and it’s pretty accurate as we wind down 2014.
“This year, more than ever, you need to meet with your tax planner to determine what steps you need to minimize your taxes,” Kopsa says.
With the high price of calves this year, many ranchers are looking at updating equipment, holding replacement heifers back, or purchasing bred heifers. Before making these investments, Kopsa offers some considerations to get the most out of tax deductions, as well as the common pitfalls to avoid.
“There isn’t one big way to save on taxes, but there are a lot of little things,” Kopsa says. “The little things add up.”
Additionally, Colin Woodall, NCBA senior vice president of government affairs, and Kent Bacus, NCBA associate director of legislative affairs, discussed what’s happening in Congress in relation to tax rules. For example, during the lame duck session of Congress, NCBA is focusing on tax reform in 2015, such as reinstating Section 179 expensing and 50% bonus depreciations to 2013 levels, and extending the conservation easement tax credit and key charitable deductions.
Are you doing any tax planning before the end of the year? If so, what strategies are you implementing this year to reduce your bill to Uncle Sam? Are you concerned about the decisions Congress will make on tax reform? Share your thoughts on the comments section below.
The opinions of Amanda Radke are not necessarily those of Beefmagazine.com or the Penton Farm Progress Group.
The Betrayed: On Warriors, Cowboys and Other Misfits. Although woven around the experiences and adventures of one man, this is also the story of the people who lived during the period of time in American history that an entire generation was betrayed It is the story of the dramatically changing times in which this personal odyssey took place. It is the story of the betrayal of an entire generation of Americans and particularly the 40% (of the military aged males) of that generation that fought the Vietnam war.