IN THE NEWS
from the January/February 2005 issue,
New York Enterprise Report magazine

INCOME TAX PLANNING:
Get in Control

With April just around the corner, there are a few steps you can take now that may help you minimize your taxes, make the tax preparation process more organized and avoid surprises. First does any of this sound familiar?

• You have no idea what your tax liability will be as the tax year ends

• You feel you are paying too much in income tax

• You talk to your accountant or financial planner only once a year, when it is time to file

• You never seem to have the cash when your taxes are due

If so, make sure your accountant or tax preparer is reviewing your books on a monthly - or, at the very least, quarterly - basis. Keeping close tabs on figures throughout the year that helps avoid the nasty surprise of an unexpectedly large tax bill at the end of the year, and prevents interest and penalties on late payments. In addition to checking for mistakes (e.g., recording capital expenditures as expenses), your tax advisor can run projections so you know how much to set aside for tax payments.

A little bit of effort up front can help you take advantage of tax-lowering opportunities. At the very least this may lower your taxes; at best, it may give you more free cash flow to spend or save. Bottom line: Having a projection of what your tax return will look like before the end of the year can give you a great deal of peace of mind.

Al Zdenek is president of Zdenek Financial Planning and can be reached at al@zdenek.com.

Reprinted with permission from The New York Enterprise Report.
www. nyreport.com