2013 Year-End Tax Planning for Businesses
Posted on 11.15.13
In recent years, end of year tax planning for businesses has been further complicated by uncertainty over the future availability of many tax incentives. The 2013 year-end is no different. The 2012 Taxpayer Relief Act (“Act”) addressed not only individual tax matters, but business tax matters as well. Some of the provisions however were only extended through 2013. Therefore, 2013 tax strategies include concerns over expiring provisions.
Tax year 2013 will also bring challenges related to the Patient Protection and Affordable Care Act of 2010 (more commonly referred to as “Obamacare.”) For businesses organized as pass through entities, higher tax rates may be imposed on income allocated to owners and the net investment income tax will apply to passive activities.
Additionally, the U.S. Supreme Court's ruling in mid-July on the unconstitutionality of the federal Defense of Marriage Act (“DOMA”) means changes to retirement plans and employee benefits for same-sex marriages. Also, compliance with final repair regulations affects virtually all businesses.
Understanding these various items will assist with business tax planning. Even though 2013 is quickly coming to an end, no worries, there is still time for tax planning to help minimize your liability. This information linked below is intended to both explain the various changes and provide opportunities for tax minimization. Read more.