- You may be able to deduct $5,500 ($6,500 for those over 50) for an IRA contribution for 2013- that is up $500 from 2012.
- You may benefit from converting your IRA to a Roth IRA in 2012, or by taking taxable income in case your tax rate rises next year.
- ‘Bunch’ itemized deductions into one year if they don’t exceed the itemized deduction.
- Travel for medical and charitable purposes may be deductible.
- Professional tax & investment planning can be a deductible expense.
- Look into qualified energy saving ideas for your home and auto for tax credits.
- Items bought for personal use, but used in the business are at least partially deductible when converted.
- To save health insurance dollars, look into a Health Savings Account or other plan. You may now get a tax credit for employee insurance.
- Travel between two business locations is generally deductible- the 2013 business mileage rate is 56.5 cents, 24 cents for medical & moving and 14 cents for charitable work and donation deliveries.
- A Simplified Employee Pension (SEP) plan is easy to set up and great for business owners. 20% up to $50,000 (2012) and $51,000 (2013), of net income can be contributed each year.
- There are no Federal employment taxes due when employing your children under 18 in your non-incorporated business. Unemployment-21.
- Shop by December 31st to deduct for 2012.
- Now is a good time for many people to start a small business of their own!