Now is the time of year when many of our clients have us prepare a Tax Projection. A projection estimates current tax year liability and prompts a discussion to see if there is some way to reduce that liability.
There are several things to consider when doing year-end tax planning: Taking advantage of expiring tax provisions, deferring income into the following year or accelerating income into the current year, and accelerating expenses into the current year or deferring them into the following year. The proper strategy depends on whether or not you anticipate a significant change in income or expenses next year.
In addition, there are many changes in the law that took effect this year, as well as some popular deductions and credits to which you may be entitled. Many of our clients feel that the cost of the projection is money well spent, in giving them a snap-shot of where they stand, while there is still time in the year to make adjustments.
Click to view a list of Tax Provisions Expiring after 2013.