There are more questions than answers about the 2012 tax year; start planning now.
If ever there was a year when you needed to be starting on your business income tax planning early, this is it.
The measures enacted in the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (more commonly known as the Bush-era tax cuts) are scheduled to sunset at the end of 2012. If Congress does not act, you'll be in for a rude surprise if you haven't prepared for this possibility.
Individuals would be affected tremendously; they would face a significant across-the-board hike in individual marginal tax rates. But businesses, too, would have to deal with a different set of IRS rules regarding, for example:
If you started a business this year, it's especially critical that you start planning for taxes now. Not only will you be facing a whole new, complex sets of forms and regulations, but like every other business, you don't know which way Congress will go - and when it will decide.
We're already halfway through the year, so it's critical that you put contingency plans in place that prepare you for an outcome that would increase your tax obligation for 2012. Do you need to accelerate income? Complete the anticipated sale of a major asset so that you're taxed at the current capital gains rate? Do more gifting? Transfer wealth? We can run through numerous what-if scenarios with you and strategize.
Certainly, we will work with you on your tax preparation needs next year if the Acts sunset and you haven't prepared. We always thoroughly examine our clients' financials and look for every legal tax advantage.
But if you start working with us now -- while there's still time to take action that will reduce your 2012 tax obligation - you'll be in an enviable position whatever happens.