Third Quarter Tax Deadlines and Strategies: What You Need to Know Now

As the third quarter of the year rolls on, businesses and individuals alike must turn their attention to crucial financial tasks: bookkeeping, accounting, and tax preparation.

This period is particularly critical as it offers an opportunity to implement strategic tax planning while also ensuring compliance with upcoming tax deadlines. Below, we will explore some essential bookkeeping practices, the latest tax information and key tax planning strategies that can help you optimize your finances this year.

Bookkeeping and Accounting: Keeping the Records Straight

Effective bookkeeping is the backbone of any successful business. As we move through the third quarter, it is essential to ensure that your financial records are up to date. This includes tracking income, expenses and any other financial transactions. Accurate bookkeeping not only helps you manage your cash flow but also ensures that you are well-prepared when it comes time to file your taxes.

Some key bookkeeping tips for the third quarter include:

1. Reconcile Bank Statements: Regularly reconcile your bank statements to ensure that your recorded transactions match your bank account activity. This helps to identify any discrepancies early on.
2. Review and Update Payroll Records: With the year’s end approaching, now is a good time to review and update your payroll records. Make sure all employee information is accurate and that all payroll taxes have been correctly calculated and paid.
3. Expense Categorization: Properly categorize your expenses. This not only simplifies your tax filing process but also helps you identify potential tax deductions.
4. Quarterly Tax Payments: If you are required to make quarterly estimated tax payments, ensure that these are calculated correctly and paid on time. Missing a payment could result in penalties and interest charges.

Latest Tax Information and Strategies

Staying informed about the latest tax laws and strategies is vital for maximizing your tax savings. Here are some of the most relevant tax planning strategies for this year:

1. The Augusta Rule: One of the most effective strategies for business owners is leveraging the Augusta Rule. This rule allows you to rent out your home for up to 14 days per year without having to report the rental income, as long as it is rented out for a fair market rate. The rental income earned during these 14 days is not subject to federal income tax.
2. Utilize Tax-Advantaged Accounts: Consider maximizing contributions to tax-advantaged accounts like 401(k)s, IRAs and HSAs. These accounts can help reduce your taxable income while securing your financial future.
3. Review Tax Credits and Deductions: Ensure you are taking full advantage of available tax credits and deductions, such as the Employee Retention Credit, Work Opportunity Tax Credit or deductions for business expenses like home office use.

Upcoming Tax Deadlines: Don’t Miss These Dates

If you filed for an extension for your S-Corporation or partnership tax return, remember that the deadline is September 15th. Missing this deadline can result in hefty penalties, so it is crucial to ensure that your return is filed on time. For individual filers and C-Corporations, the extended deadline is October 15th. Now is the time to gather all necessary documentation and ensure your return is accurate and complete.

If you need assistance with tax filings and bookkeeping or just have questions about tax planning strategies, we invite you to reach out to Corporate Capital’s dedicated team in Las Vegas, Nevada. Our specialists are here to help you navigate the complexities of bookkeeping, accounting and tax preparation, ensuring that your financial health is in excellent shape as we approach the end of the year.

Further Reading:
How Business Owners Can Use The Augusta Rule Tax Strategy. Forbes Media, Feb 28, 2023.