Last Minute Tax Planning For 2013
Posted on Monday, December 23, 2013 There's not much time left for you to make beneficial tax moves for 2013. Consider these possibilities. * Maximize retirement plan contributions. For 2013, you can put $17,500 in a 401(k) plan, $12,000 in a SIMPLE, or $5,500 in an IRA. If you're 50 or older, you can set aside even more as "catch-up" contributions. * Decide whether to sell investments to offset gains or losses already taken this year. You can deduct $3,000 of net losses against ordinary income. * Estimate your tax liability for 2013, taking the new Medicare tax increases for higher-income taxpayers into account. If you'll be underpaid, adjust your final quarterly tax payment or your December withholding. * December 31 is the deadline for taking a 2013 required minimum distribution from your traditional IRA if you're 70½ or older. Miss this requirement and a 50% penalty could apply. * Purchase needed business equipment to use the first-year $500,000 expensing option for new and used equipment and 50% bonus depreciation for new equipment. * Make energy-saving home improvements that could qualify for a lifetime tax credit of up to $500. * Finalize annual gifts to use the 2013 exclusion from gift tax on gifts of up to $14,000 per recipient. Contact our office for details on these and other year-end tax moves.
Posted in Tax And Accounting Topics For Business
Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.