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Turn tax strategies upside down: year-end planning

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in Centerpiece,Small Business Tax,Small Business Tax Deduction Strategies

man planning for taxesyear-end tax planning in 2012 is topsy-turvy.

Strategy: Throw out the traditional game plan. Usually, tax pros advise high-income tax­­payers to push taxable income from the current year into the following year in order to delay taxes. Con­­­­cur­­rently, they may pull de­­duc­­tions from next year into the current year to offset income in the current year and lower the tax bill for that year.

This basic “push-and-pull” strategy works well in most years. But there’s a major tax storm brewing on the horizon. Unless Congress acts soon to stem the tide, taxes will go up next year, while certain tax breaks will be curtailed or eliminated. Plus, taxpayers face two new Medicare surtaxes on certain types of income under the “Affordable Care Act” (ACA), beginning in 2013.

Crazy as it sounds, this year you might want to do the exact opposite of what you normally do at the end of the year. In other words, the best approach might be to...(register to read more)

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