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Reese Henry & Co

Money-Saving Strategies for 2013

As we approach year end, everyone's attention should be focused on...taxes? Well, okay, maybe not everyone's full attention. But, there is still time to implement some money-saving strategies for 2013. Here's the rundown.

  • Many tax provisions are expiring this year, and may not be renewed. Among these are the "bonus" depreciation rules allowing direct write-off of 50% of certain asset purchases versus depreciating those assets over time. In addition, the "Section 179" deduction becomes extremely limited after 2013, dropping from a maximum of $500,000 of assets that can be written off immediately to $25,000. Now may be the time to buy new assets.
  • New rules have been adopted by the IRS that affect the deduction for repair expenses of business assets. A number of new requirements must be complied with in order to minimize the impact of these changes, including adopting a written policy. Contact us so you can get this policy properly drafted and put in place so that the new rules are complied with.
  • The new 3.8% surtax on investment income and gains could have a major impact on your tax bill for 2013. There is still time, however, to implement some unique strategies that would minimize the effect of this new tax. Call us now!!!
  • There is still time to convert a traditional IRA into a Roth IRA. Amounts deposited into Roth IRAs grow tax free. Many individuals with higher incomes are not eligible to make contributions to a Roth IRA. However, for 2013, there is a limited opportunity to do this despite the income limitations. Call us for details.
  • As an individual's tax status changes from year to year due to marriage, divorce, birth or age of children, etc., opportunities often arise to make decisions about the timing of income and deductions. We can help maximize the benefits available in these situations.
  • Making charitable contributions at or before year end is always a tax planning strategy. This year this may be even more important given the whispers coming from Washington. Many tax writers are quietly discussing limiting the availability of charitable contribution levels in future years. While there is no guarantee that Congress will do this, it may be wise to consider accelerating these donations.
  • If you are eligible for a Health Savings Account due to having a "high deductible" health plan, be sure that you maximize your deductible contribution to this plan for 2013.
  • It may be advantageous to prepay qualified higher education expenses in 2013 as this provision is set to expire for payments made after 2013. While Congress could extend this provision, it is possible these deductions will be lost forever.
Call us at 970.925.3771 to discuss these and other year-end tax saving strategies that might benefit you.

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Reese Henry & Company
Phone: 970.925.3771  |  Email: Info@ReeseHenry.com
Aspen Office: 400 East main Street Aspen, CO 81611
Carbondale Office: 0326 Hwy. 133, Suite 200 Carbondale, CO 81623

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