Don’t Miss These Year-End Tax Planning Opportunities for Business Owners!

As the year comes to a close and we begin to prepare for the holiday season, we must also prepare for tax season.  There are a number of opportunities for business owners to consider before the end of the year.

Section 179 deduction: One major tax benefit that is scheduled to be drastically reduced in 2014 is the Section 179 expense deduction.  The current dollar amount on expensing new asset additions for 2013 is $500,000, and that amount is scheduled to be reduced to $25,000 in 2014. In addition, the 50% bonus depreciation on qualifying purchases is still available for 2013.  However, this is scheduled to expire in 2014.  Therefore, business owners should strongly consider accelerating purchases of qualifying equipment into 2013.
Retirement savings: It is not too late to create a retirement plan for 2013 and contribute. Doing so can reduce your overall taxable income.
Tax credits: There are a number of tax credits such as the Work Opportunity Tax Credit (WOTC) and research and development tax credit that are still available for 2013, but those windows will also expire on December 31, 2013.

Contact your Kaufman Rossin tax professional to learn how your business can take advantage of the tax opportunities that are available now.