There are any number of different tax-related issues for business owners to tackle at the end of every year. But this year, there’s more of a sense of urgency, at least in regards to that tax-related to-do list. That’s because even though you may not know it, you’re on a deadline that’s less than two months away. A lot of federal tax breaks—dozens, according to attorney and small business/tax expert Barbara Weltman—are scheduled to expire on December 31. And, if you’re going to take advantage of them for 2013, you need to act now.
We guess there’s always a chance that Congress could extend these soon-to-expire breaks. But given recent performances and the myriad issues on the plates of members of the House and Senate, we’re not holding our breath. And neither should you. Weltman says on sba.gov’scommunity blog that since no one knows if any or none will apply next year, business owners need to get busy, get educated and get whatever advantages you can—now.
What do small business owners need to pay most attention to and possibly act on? Between now and the end of the year, you could make decisions that could potentially mean deductions in several big areas, including capital equipment, improvements, expenses for R&D, energy efficiencies, tax-friendly investments and capital gains
First step: You might want to take the advice offered by small business owner and inc.comcontributor Gene Marks: Call your accountant, invite him or her to dinner and start discussing your next moves!
In the meantime, here are several of the most appealing expiring tax breaks, according to both Weltman and Marks:
There are also potential advantages to be had in areas like capital gains and investments, hiring certain workers and others, and they’re all set to expire. At the risk of being repetitive, enlist the help of your accountant now, so that if there are opportunities here for you, you’ll still have time to take the necessary action, from replacing computers to moving up the completion date for the office upgrades you’re having done. Weltman points out that a bi-partisan Congressional committee is supposed to decide by December 31 what stays and what goes. Don’t wait for these decisions, because you won’t have time to take the actions that will enable the tax savings. Today, however, just might be another story for maximizing your 2013 tax savings.