Should I spend lots of money to reduce my tax bill
The question I keep getting asked a lot recently is, its coming up to my year end? Should I spend lots of money to reduce my tax bill? Well, really, my initial gut answer would be no, not unless it’s a legitimate business expense that you’re planning to spend the money on. If it’s a piece of equipment, maybe that you had been thinking about buying over the next few months, then maybe Yeah, bring that expenditure forward, get it in before year end and get the tax advantage. But if you’re just spending money for the sake of spending money, that really probably isn’t a very good strategy. Personally, I’d rather keep that money within the business to use further down the line or actually to take out as as profit for yourself. So my answer would be probably no, don’t just spend money to try and reduce your tax bill. Only if it’s a legitimate business expense.
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