Tax Tips For The Stressed Entrepreneur



There is something frustrating about the financial planning calendar. People need to make decisions by the end of the year, but that is exactly when the distractions of the holiday season are at their peak. There is an added twist for 2012: with the pending expiration of the Bush tax cuts, no one knows for sure what tax rules will be in effect for 2013 and beyond.

One still needs to do what one can. Bill Harris, CEO of Personal Capital, sets forth a checklist on The general theme is to accelerate as many deductions as possible into 2012, where the tax treatment is likely to be more favorable.

His suggestion on capital spending will be of particular interest to small business owners. The generous Section 179 write-off drops next year from $139,000 to $25,000, while the 50% “bonus” depreciation deduction goes away entirely. It makes sense in this environment to do one’s capital spending by the end of the year if possible.

It may be hard to schedule during the holiday rush, but a timely chat with your tax advisor by December 31 may be the best guarantee against Santa leaving a lump of coal in your stocking. Of course, there is not much one can do escape the longer term designs of a government (and an electorate) enamored of high tax rates.

Get Free Email Updates!

Signup Now to Receive Updates and Alerts!

We will never give away, trade or sell your email address. You can unsubscribe at any time.

About Author

Retired from American Airlines after a 34 year career. Finance professional with strong background in corporate treasury management and personal income taxes. Graduate of Georgetown University (BS Foreign Service) and The University of Texas at Arlington (MBA). Contributor to TMR since 2007. Host of "Italian Tomatoes" show on Blog Talk Radio. I am a center-right Republican with a passion for business, history and current affairs. Go to Blog Talk Radio to listen to my latest show Social Media and Slim Pickings

  • Michael Becker

    Well, since the manufacturing index was supposed to UP by 2% in November and in fact, it went DOWN 2.8% I’m guessing folks are planning on hanging onto as much cash as possible for as long as it takes to dig a hole in the back yard.

    Frankly at this point, the only good investment is precious metals. Brass. Lead.