December 31st is one of the most important days for entrepreneurs.
On this day you can create tax deductions that count for the whole year. (Please talk to your tax adviser or accountant to verify my suggestions.)
It is also a great day to review the transactions you closed in 2018, figure out how much you earned (before and after splitting commissions with your broker), and analyze which lead sources are most profitable for you.
6 Actions to Take on the Last Day of the Year
1. Buy Business Equipment
like a new laptop or cell phone and pay with your credit card. You need to put it in use today, so don’t order online. Most likely you can write off the full purchase price in 2018 and pay off your credit card 45 days from now.
2. Pre-Pay Bills Due in January
As long as you send the check today you can deduct it as a business expense for 2018. This includes property taxes on rental properties that are due on January 20, 2019.
3. Delay Income
by pushing the payout of your final closings to January. Less income in 2018 means lower taxes.
4. Make a Donation
to your favorite charity. Most take credit cards online. Even if you can’t deduct it from your taxes, it makes you feel good and you help others in need. Looking for a good charity to donate to? Check out Charity Navigator.
5. Analyze Your Closing
Prepare a list of all transactions you closed in 2018. If you don’t have a spreadsheet yourself (you should!) you can download the list from the MLS. For each closing ask yourself where the lead came from and how much money (if any) you had to invest in marketing to generate this lead.
6. Set 3 Goals for 2019
I suggest you set a goal for how many transactions you want to close and how much you want to earn (profit). Then set a personal goal (like a trip you want to take with your family or the new car you want to buy). As you can imagine, setting 3 goals for 2019 is not enough. Write down specific actions you will take in the first 10 days of January and prepare a detailed plan later this week.
We appreciate all of you who support Columbus Real Estate Coach and continue to embark on greater success in your real estate career! Good luck in 2019!