Finance expert Mike Periu on smart moves you can make before the end of the year to lower the tax liability for your business.
There are less than two weeks left in 2012 but that is plenty of time to take steps to lower your small business tax liability. Given the uncertainty over what will or won’t happen with regards to income taxes, it’s best to take advantage of every opportunity now in case they disappear next year:
- Make planned asset purchases now. Equipment bought in 2012 qualifies for the full Section 179 deduction which means you can take the cost of the equipment as an expense instead of having to amortize it. This is set to dramatically decrease in 2013.
- Start a retirement plan. If you start a retirement plan for your business before the end of the year, you qualify for a tax credit to help offset the setup costs of the plan.
- Don’t forget about the health insurance tax credit. Certain small businesses receive a tax credit for a portion of the heath insurance premiums they pay on behalf of employees through 2013.
- Hire a veteran. The Work Opportunity Tax Credit offers small businesses that hire a veteran up to $9,600 but it expires at the end of the year.
Learn more about Mike Periu
Mike works with small businesses to teach them about finance and management. He started Proximo, LLC, a company that offers small business education and training services focused on finance and technology.
Periu also writes for OpenForum, Yahoo! Finanzas the Huffington Post contributor.
Mike went to Georgetown University where he studied Finance and International Business. He also serves on the Board of the Council for Economic Education and was a Fellow at the Kauffman Foundation.
