04 Dec Do it now: Small Business Tax Planning 2013 Expirations (and large businesses too!)
Expiring in 2013
The tax credit for Research and Development (R&D) is set to expire in 2013. Even if you are not a tech 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.
The First-year bonus depreciation for equipment is set to expire, so make sure you have your attorney review your 2012 and 2013 purchases.