Finance expert Mike Periu on strategies to implement now Reduce Your Income Taxes.
Small-business owners still have time to implement several strategies that will reduce their 2012 income tax liability. The catch is that they must be put into place before the new year.
Consider the following opportunities:
- Accelerate income. Given the near-certainty of income tax increases beginning with the 2013 year, small-business owners that use cash-basis reporting should try their best to invoice and collect from their customers during the final days of 2012 so that income is taxed at current, lower rates.
- Convert your IRA. Owners of a Roth IRA can take money out of these accounts tax-free for retirement. That is a significant advantage to other types of retirement accounts that require you to pay income taxes when you take the money. You can convert your retirement accounts to Roth IRA. Converting will trigger a tax, but doing so in 2012 will result in a lower tax liability than doing so in 2013.
- Accelerate equipment purchases. Section 179 of the tax code allows you to expense the purchase of business equipment up to $139,000 in 2012. This goes down to only $25,000 in 2013.
About Mike Periu
Mike is a seasoned executive with experience in small business finance and management. He is the founder of Proximo, LLC a leading provider of corporate, consumer and small business education and training services with an emphasis on finance and technology.
Mike Periu is also a leading national voice for individual empowerment through financial education and entrepreneurship. He has been interviewed over 500 times in national and international media, including NBC, Univision, CNN en español, Telemundo, HITN, TVE, RTE, SBS, MegaTV and others.
Mike writes regularly for American Express OpenForum, Yahoo! Finanzas and is a Huffington Post contributor.
Mike has degrees in Finance and International Business from Georgetown University. He is on the Board of Directors of the Council for Economic Education and was a Fellow at the Kauffman Foundation’s Labs for Enterprise Creation.
