My best advice is don't get distracted by the fiscal cliff

Good evening everyone,

 
I’m Ben Ekwalla, a CPA in Georgia. As the whole nation takes a special look at an important issue for all Americans: the fiscal cliff, I would like to present a number of tax planning opportunities available to Businesses and Individuals for the ranmainder of 2012. So, read on for tips that can help you maximize your deductions and claim the credits you deserve.

Section 179 deduction which allows businesses to deduct expenses for a variety of capital equipment purchases including computers, furniture, certain business software, vehicles, manufacturing equipment, and more. As result of the the 2010 Tax Relief Act and the Small Business Jobs Act, deduction limits under Section 179 have increased from $139,000 (purchases only up to $560,000) to $500,000 as long as you spend less than $2 million in new purchases. Therefore, if your business makes any purchase before the end of the year, you may be able to deduct most of your outlays for capital equipment.

Returning Heroes and Wounded Warrior Tax Credits for businesses that hire unemployed veterans with a maximum credit of $5,600 per veteran, and the Wounded Warriors Tax Credit offers businesses that hire veterans with service-connected disabilities with a maximum credit of $9,600 per veteran.

Start-Up Costs Deductions. If you started a business this year, or are planning to open your doors in 2013, you can deduct the start-up costs on your 2012 tax return.

Retirement plan. In 2012, in addition to $17,000 contribution as a 401(k) deferral, self-employed individuals can contribute 25 percent more of net income.