Prepare Now to Pay Less in Taxes
Don’t look now, but the holidays are just around the corner. And with the year winding down, now is a great time to get the jump on your small business’ year-end tax planning. Here are a few ways you can reduce your tax liability for 2012 before you ring in 2013.

Make Sure Your House Is In Order - Before any company should even begin to contemplate addressing their taxes, they should thoroughly assess their finances, and make sure their books are up to date and accurate. Being better prepared will enable you to make the most effective year-end tax decisions.

Invest in Your Business - Increasing your expenses by the end of the year can reduce your tax liability, particularly the purchase of new equipment and/or software. Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying items purchased or financed during 2012, with a maximum limit of $560,000 and a deduction limit of $139,000. A 50 percent bonus depreciation can be used by any business that is unprofitable in 2012.

Additionally, purchase supplies, equipment, and materials for next year before December 31st, and pay January or 1st quarter bills early.
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November 2012
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Hudson Imaging Systems | (940) 723-0591 | Wichita Falls TX 76301