Now that the dust has settled after President Obama’s re-election, what can we expect on the tax front for 2013? In particular, will a slew of tax increases scheduled to take effect this year be repealed, modified or allowed to stand? Here’s a bird’s-eye view of what you might see in 2013.
Small Business Tax
Section 179 vehicles should be a key part of your small business tax deduction strategies. Can Section 179 property fit in with your business tax strategies?
Let Business Management Daily help you get each and every rental property depreciation credit and business tax deduction you’re entitled to.
The IRS has announced more than two dozen inflation-based adjustments for retirement plans and other tax parameters for 2013, including the following.
Q. I’ve invested thousands of dollars in sound systems, instruments and equipment for my band. Can I use the expenses in past years to offset income in 2012?
Q. I gave each of my adult children $10,000 before the holidays. Can I increase these amounts without paying gift tax? C.G., New Britain, Conn.
With the prospect of higher taxes in 2013, plus the imposition of the new 3.8% Medicare surtax on investment income, it makes more sense than ever for well-off individuals to convert a traditional IRA to a Roth. Strategy: Set up multiple Roth IRAs based on the asset classes of the current investments in your traditional IRA.
Simply using tax preparation software won’t protect you from IRS penalties, the Tax Court rules.
Municipal bonds are likely to be at a premium at the end of 2012. Not only do they produce income free of federal and sometimes state and local tax, the income isn’t subject to the new 3.8% Medicare surtax. Strategy: Swap underperforming munis for other munis in the secondary market.