Year-End Tax Planning

Given the political landscape for 2013, the choices you make in preparing your 2012 tax returns may carry greater importance than usual. 2013 will bring a wide variety of changes: 9% Medicare Surtax for the self-employed as well as high income earners with incomes over $200k(s) and $250k(mfj). A new Medicare tax of 3.8% on all unearned income. Unless Congress acts, the Section 179 deduction will fall to $25,000 from it’s current $139,000. Bonus Depreciation will completely disappear. The threshold for the Medical Deduction will rise to 10% from it’s current 7.5%. Don’t be surprised to see reinstatement of the…

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