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Form 1120 CPA offers last minuteTax Planning for 2012

Form 1120 CPA

Gary Bode CPA: consult with your Corporate CPA for last minute 2012 tax positioning. (910) 399-2705

Form 1120 CPAs watch as Congress procrastinates. Bonus depreciation and Bush tax cuts expire in 2012. Congress could extend these provisions. But who knows? Bush tax cuts, Bonus Depreciation, and favorable Dividend tax rates are all set to expire.“Any tax planning has to make sense for the Corporation’s long-term goals. Cash flow is one consideration. Taxes are just part of the Corporate picture. I suggest consulting with your CPA in 2012 for last-minute tax positioning. Don’t forget your State’s tax implications.” 
– Gary Bode, Form 1120 CPA

Same old Dividend Dilemma

Tax on 2012 dividends is 15%. In the past, Congress extended these rates and may do so again. But if they don’t, the rate could be 39.6% (the highest marginal individual tax rate). If cash flow allows, prepare to take Dividends in 2012. Plus a potential 3.8% Medicare surtax exists, depending on the stockholders adjusted gross income.

Wounded Warrior and other Work Opportunity Tax Credits (WOTC)

Hiring certain classes of employees allows a WOTC of $2,400 to $9,600. Again Congress could extend these programs beyond 2012. Note this is a General Business Credit. You pay full employment taxes on the new employees. And then claim the General Business Credit on Form 1120. Beware of the potential cash flow trap.

50% Bonus Depreciation

Plan equipment purchases with input from your CPA. Immediate depreciation is not always warranted. For example, say you finance a $100,000 of equipment in 2012. In 2013, things are great; you get a $100,000 depreciation deduction. But later you’re still making payments and only the interest is deductible. Ouch. Financial discipline and tax planning should work together.

Expensing

In 2012 the limit is $139,000 with a $560,000 ceiling. In 2013 it could be $25,000 with a $200,000. Consider accelerate purchases into 2012.

Corporate Vehicles

Ever wonder why there are so many SUVs on the road when gas prices are high? They incur “faster” depreciation rules. Again faster isn’t always better. Consider buying any Corporate vehicle in 2012.

I’m a Form 1120 CPA with a virtual office to serve your Corporation wherever it is. I suggest consulting with your CPA in December. If you don’t have a Corporate CPA, consider giving me a call at (910) 399-2705.

 

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