Year End is approaching - Tax time to think about

As a small business owner hopefully it has been a good year for you.  If so, you should be thinking about how to reduce your tax liability for the year.  This might be by purchasing new equipment and taking advantage of the generous IRS 179 deduction for this year ($139,000 for 2012 vs only $25,000 for 2013). 

All small business owners should be thinking about their retirement.  If you are not contributing to a personal IRA or Roth, you should be.  Other options available to you include Simple IRA, SEP IRA and now even a solo 401K.  Many of these have very high contribution limits that you can save for retirement and at the same time, reduce your income tax liability.  Talked to your accountant for more information on how to setup these programs.

There are also a bunch of new tax law changes for 2013, especially if the fiscal cliff discussions don't get resolved.  The biggest tax change to affect everyone working is the increase of 2% in the payroll tax.  This will go into affect no matter what so expect at least 2% more tax being taken out for social security (or self employment tax) than there was in 2012 (up to the social security limit).  If you have employees, let them know so they are no shocked.

Follow this link for a great article on the changes in taxes for 2013.

http://taxes.about.com/od/deductionscredits/tp/Tax-Provisions-Expiring-At-The-End-Of-2012.htm?nl=1

I hope everyone has a profitable Christmas shopping season.

Tom

www.RoanokeSmallBusiness.org