Do It now: Small Business Tax Planning 2013 Expirations (And Large Businesses Too!)

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Written by Ronald Cappuccio | Posted in Specialty Tax Incentives

Expiring in 2013

The tax credit for Research and Development (R&D) is set to expire in 2013. Even if you are not a technology company, this credit could apply to your business. New processes and developments could count toward this credit. Check with a qualified tax attorney. This credit has been extended before, but why hope and wait to see if it will be extended again?

Drastic Changes in the Section 179 Deduction

Waiting until the new year to buy a new truck for your business? Don’t. Need new servers and computers? Waiting for the after Christmas sales? If you snooze, you lose. Your items must be purchased and used/installed before the end of 2013 to potentially qualify for the 2013 $500,000 deduction. This deduction will be reduced to $25,000 in 2014.

Depreciation

The First-year bonus depreciation for equipment is set to expire, so make sure you have your attorney review your 2012 and 2013 purchases.

In accordance with Circular 230 Disclosure

Ronald Cappuccio

Ronald J. Cappuccio, J.D., LL.M. (Tax), business and tax attorney, has more than 30 years of tax and business law experience. As a lawyer since 1976, admitted to practice before NJ State and Federal Courts, including the US Tax Court and the Court of Federal Claims, I have helped clients from around the U.S. as well as multi-national clients. I have dedicated my life to agitating people – especially the IRS and government functionaries. I have never worked for the IRS and therefore I do not have to worry about them as former colleagues. Fighting the government so you can keep your money is just plain fun for me!