Strategizing Woodworking Resource Allocation

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Small Business Tax Advice and Tax Deductions

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What happens here

Based on the mid-year assessment, if a woodworking business owner identifies a high projected taxable income, the remaining months (November and December) can be used to make strategic decisions. This might include purchasing new, essential woodworking machinery (e.g., a new planer, band saw, or CNC machine) or investing in retirement funds. These are examples of resource prioritization with a direct tax benefit. The host gives an example where proactive planning enabled him to acquire significant equipment, which would have been impossible if he had waited until the last minute. This proactive approach ensures that the business owner can take advantage of tax deductions and avoid being in a "reactive" position with limited options.

Goal: Make informed, tax-advantaged investments in woodworking resources before year-end.

Tools and materials

Equipment catalogs/quotes
Investment adviser
Tax professional/Accountant

What they say

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31st because I didn't start in October I actually started November about 25th 26th last year with my pre-tax season planning because it was the first year I heard about it I was writing out a check on December 31st to a snowplow company to purchase two brand new MVP 3s uh Western Snow Plows because I couldn't wait till the very next day and it was 4 or 5 o'l in the afternoon and I was just going through got up at 4: or5 that morning was going through and finalizing all of the transactions and make make sure that it felt it it fit into the schedule the right way I always am checking my cell phone on the 31st if I'm at home so I know somebody's making a last minute call or email that hey I need to purchase this should it be in the business name or my personal or there's always those type issues at the end of the year but but to get back to it yes the the important part of it is you need to have the records and that's another big thing if you if you haven't kept records all year lot of you wouldn't be alone but there's really nothing you can do about it you have no idea what your revenue is but wait if you don't keep records you still have a check register right and you still have bank accounts so the way I do my personal books is every month the bank sends me a statement and it shows every credit card transaction every check I've ever done and that's what I use sure that's a more accurate register for me than it is my own personal record keeping no that's that's perfect and I maybe I wasn't uh maybe I confuse that subject a little bit it's if you don't go back and total all those things up then until after the end of the year then it's it's the same thing then you found out too late but uh your options after the end of the year there's still a few with retirement type things and IA and that but it severely limits your options so what you need to do is if you haven't like Stan mentioned go through those registers hopefully you're keeping separate business and personal accounts that'll make life way easier um you know

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