Small-Biz Tax Tips for Procrastinators

I know -- taxes are the last thing on your endless holiday list.

But you'll feel much better about the new fiscal year if you shell out less income tax. So here are a few last-minute tips for you business owners who have better things to think about.

1. Keep your eyes on the horizon.

"Don't look at 2007 in a vacuum," says Brittney Saks, partner with PricewaterhouseCooper's private company services practice.

A good look at the year ahead will help you to see what income and education look like in both years and to make better tax decisions.

2. Did the AMT get me?

Ah, the Alternative Minimum Tax. If you're subject to it, reverse most of the year-end tax advice you get.

For example, most would prepay their real estate taxes in 2007 to qualify for the deduction, but if you're AMT material, you want to defer those deductions into 2008.

The AMT only applies to C corporations, says Jeff Cullen, advanced-planning consultant for The Hartford Financial Services Group.

So if you haven't already, go to a tax adviser or use some software such as Intuit's(INTU Quote) TurboTax and see if you're subject to the AMT.

New corporations are exempt from the AMT their first year in business.

3. Give out bonuses.

If you're in a low tax bracket but your business is in a high tax bracket, you can get a nice deduction by giving out bonus dollars to your executives, says Cullen. These don't have to be paid out until March 15, 2008.