5 Moves to Make Now to Lower The Tax Liability for Your Business
There are less than two weeks left in 2012 but that is plenty of time to take steps to lower your small business tax liability. Given the uncertainty over what will or won't happen with regards to income taxes, it's best to take advantage of every opportunity now in case they disappear next year:
Make planned asset purchases now. Equipment bought in 2012 qualifies for the full Section 179 deduction which means you can take the cost of the equipment as an expense instead of having to amortize it. This is set to dramatically decrease in 2013.
Start a retirement plan. If you start a retirement plan for your business before the end of the year, you qualify for a tax credit to help offset the setup costs of the plan.
Don't forget about the health insurance tax credit. Certain small businesses receive a tax credit for a portion of the heath insurance premiums they pay on behalf of employees through 2013.
Hire a veteran. The Work Opportunity Tax Credit offers small businesses that hire a veteran up to $9,600 but it expires at the end of the year.
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