Happy New Year, 2024!

Hi there & happy New Year, 2024!

Things to do, "taxwise", for the new year...

I N D I V I D U A L S

* if you are an individual tax client, please take a look at the tax organizer which was provided to you mid-December (some emailed 12-20-23, some snail mailed) - and see the list included - "a few items to start"... 

* set up a tax "folder" to keep tax documents like 1099's, 1095, W-2, 1098, property taxes paid, K-1, etc etc. These should arrive in January, but may be as late as February 15th. Include those source documents (copies only, please) with your completed tax organizer. 

* look at my prior 2023 tax planning blogs to make sure you did all of that too! Some tasks needed to be done before 1-1-24, but some are for 2023 too.

* pay 4th quarter IRS and Oregon estimates by 1-15-24, if needed. See last years' tax letter accompanying your copy of tax returns.

B U S I N E S S E S

* Look at my prior 2023 tax planning blogs for items to do (some tasks are duplicated below)

* take an "inventory" (as of Dec31) of any items for sale to customers (make a detailed cost worksheet, take pics, and reconcile/adjust Quickbooks records)

* close your books soon & reconcile all accounts as of Dec 31st (to bank statements, loan balances, credit card statements, and any wages to form W-3, etc). No need to wait for statements to arrive in the mail, you can just go online to see these, print & reconcile them now.

* order IRS forms 1099's/1096 soon, if you paid for services or any rent in 2023 (to any entity that is unincorporated. I'm an s corp, so no need to file one for me!). It may take a few weeks for forms to arrive, so order them now! Those are due by 1-31-24 to the IRS and Oregon requires you to file those electronically by iWire. # 

* make a note of "accounting practice" as of January 1st each year - to expense any purchases of $2,500 or less (each) & record those in an expense account. Do not list these as assets on your Balance Sheet. If that practice is in effect (as of Jan1 each year), you can make a "de minimis" tax election & just expense these items, rather than depreciate them over years.

* keep track of all 1099-MISC (or 1099-NEC) forms received, to match/confirm sales from customers. The IRS uses these to confirm your sales, so match them up! Be sure to report ALL sales, even if a customer did not issue you a form 1099.

* prepare a detailed schedule of equipment purchased & used in your business as of 1-1-24 & file annual "personal property tax report" in your county assessor's office, before 3-15-24. #

* if you are an S corporation, C corporation, or multi-member LLC - please provide me initial tax information requested, in January or early February, latest. We can schedule a Zoom meeting too, if you wish. See list of items needed & letter of instruction sent you. Those tax returns are due March 15th & complete data (with no questions remaining) from you must be received by Feb 15th in order to file timely. same as in past years.

* if you are a larger business, operating in Oregon (commercial activity of $750k or more), be sure to register for the new Oregon Corporate Activity Tax (CAT) tax. Please see info here on your registration requirements, etc. #

* keep all accounting & tax records, orginals or electronic copies & safeguard them. I suggest most all records be kept for at least 7 years, but some should be kept permanently (investments, home, assets, wills, etc). IRS link below says less, but keep these longer!

* review your 2023 records of time spent on business and/or rental activities and document to prove material participation & possible "trade or business" status.

* review your 2023 schedule & documents to support any business mileage driven (if s corp, c corp, or multi-member LLC - that mileage should have been reimbursed by 12-31-23 to deduct. If you reimburse after Jan1, a 2024 deduction might still be possible). 

Yes… most of this was provided in my 2023 Year-End Tax Planning blog (Oct31). All of that still applies! I look forward to helping you again, in 2024...

Have a great New Year!  GARLAND

Garland Taylor CPA, Pres.   GARLAND R. TAYLOR CPA, P.C.

https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records

https://www.oregon.gov/DOR/programs/businesses/Pages/corporate-activity-tax.aspx

https://www.irs.gov/forms-pubs/forms-and-publications-by-us-mail

https://www.oregon.gov/DOR/programs/businesses/pages/iwire.aspx

https://multco.us/assessment-taxation/business-personal-property-information

"de minimis" election - https://www.irs.gov/pub/irs-drop/n-15-82.pdf

biz miles driven, pg13-26 - 2023 Publication 463 (irs.gov)  Note: 2023 biz rates were 65.5 cents per mile. The above Pub463 link is a "draft", the 2024 biz rate is up to 67 cents per mile (14 cents for charity & 21 cents for medical). Note - you must keep detailed mileage records!

# note: this task is not part of my normal income tax services, fyi. just ask, if you have questions or if you need help... GAR