Rule of Thumb
It seems more and more likely that a lame-duck Congress will decide the fate of the Bush tax cut extensions. It is also becoming clear that tax planning for 2012, as well as 2013, will take some reading of a crystal ball. The rule of thumb is to plan for what you know, and that would be accelerating income into 2012, but you really need to do several “what if” scenarios just in case Congress makes final, year-end changes. This is an unhealthy atmosphere for business and business owners. Without comprehensive tax reform that will extend over a significant period of time, businesses will remain at the mercy of the politicians.
Part 2 of this two-part article will examine expiring provisions directed at individuals.