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President’s letter
Planning for your financial future
Martin G. Brookes, National Tile Contractors Association President
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November is an important time to start planning for your financial future for the coming year. It is never a good idea to wait for tax season to start your financial planning because some opportunities to benefit from the tax code may have already passed, which could have increased your profits and allowed you to reinvest this income in your business. Taking advantage of the U.S. Internal Revenue Code (IRC) is a smart business practice. For example, Section 179 of the IRC is an immediate expense deduction that business owners can take for purchases of depreciable business equipment such as vehicles and heavy equipment. If you do not plan – and wait until the last minute to purchase a new vehicle or other equipment – you may not be able to find the equipment that qualifies for this deduction.
Another option to reduce your tax burden is to offer a 401k retirement plan for your employees. The NTCA offers a 401k plan to its members. Offering a 401k plan to your employees may reduce the tax burden for both your business and employees. Always check with your certified public accountant or financial advisor to find out what works best for you. Giving should also be part of your planning. Charitable contributions are tax deductible and allow you to lower your taxable income and to support causes that are important to you. For example, the Ceramic Tile Education Foundation (CTEF) and the Heritage Tile Foundation (THF) are two organizations that would enjoy your tax-deductible contribution, and of course help the industry you work in to educate, train, and preserve our heritage. Finally, your NTCA membership dues are also a tax-deductible expense. By paying your membership fees early you can deduct this expense for the current tax year. I hope the year has been profitable for all of you, and that you are able to plan accordingly for the year ahead and take advantage of the IRC that will help you build a better future for both yourself and your employees. Happy Thanksgiving to you all!