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March 2013 Tax Tips

Posted by McDonald & Osborne Posted on Oct 13 2015

Elect S Corporation status. If your sole proprietorship or partnership is producing a net profit in excess of a reasonable compensation for your time, you could save money by incorporating and electing S status. The deadline for making an election for calendar-year 2013 is March 15.

If you had self-employment income in 2012, you can contribute to a SEP or a Keogh pension plan. (The Keogh had to be in place by December 31, 2012.) Contributions can be made up to the due date of your 2012 tax return, including extensions.

If you sold stock or mutual funds in 2012 , check your records carefully for reinvested dividends that will add to your basis and reduce taxable gain (or increase loss) on the sale.

Check for carryover items that could reduce your 2012 taxes. Check prior years for unused items such as capital losses , investment interest expense, business operating losses, and charitable contributions.

Maximize your child care credit. If you and your spouse are both employed at full- or part-time jobs, make sure you get the maximum benefit from the child care credit. When calculating the credit, remember that you may be able to include the cost of day care, nursery school, babysitting, and summer day camp.

Lisa Osborne
Office Administration

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