Small Business Tax Deduction Strategies

Due to the new American Taxpayer Relief Act, you may be getting a later start than usual on your federal income tax return. Here’s a roundup of “what’s new” on Form 1040 for most taxpayers.

The choices you make on your 2012 federal tax return can have a major impact on your overall tax liability. In fact, your tax return elections could make the difference between a sizable refund and paying more money to Uncle Sam. Here are five prime considerations.

Q. I’m age 78 and the founder of my company. Since I retired last year, can I still elect 10-year averaging for my retirement plan?

For the second year in a row, senior citizens enrolled in Medicare Part B will have to pay a higher premium charge. Higher-income individuals must pay even higher monthly Medicare Part B premiums, based on their MAGI, plus a surcharge on Part D premiums for coverage of prescription drugs.

Q. I sold stock in 2011 at a $7,600 loss and offset $3,000 of ordinary income. Do I have to use the remaining loss on my 2012 return? L.M., Albu­­quer­que, N.M.

The IRS has clarified the rules concerning a new 2.3% excise on certain medical devices.

The IRS recently announced cost-of-living adjustments for retirement plans in 2013. Here are some of the key limits.

Calamity was predicted due to the “sunset” of several favorable estate tax provisions on Dec. 31, 2012. But now the dawn of 2013 is more promising. The new tax law includes the following permanent changes.

Put away the party hats: You won’t be celebrating a “payroll tax holiday” this year.

Under a special IRS program, an employee may choose to donate amounts owed for leave time—sick, vacation or personal days—in ex­change for cash payments made by the employer to a qualified charity on behalf of Hurricane Sandy victims.