2012 Taxes and Beyond

[Pack-Secure]

Tax Moves to Make Before 2013 | Inc.com (http://www.inc.com/bill-harris/year-end-tax-moves-small-business.html)

[Pack-Secure]

Tax Hikes Are Coming. Time to Sell Your Business? | Inc.com (http://www.inc.com/bill-harris/tax-increases-time-to-sell-business.html)

[Evan]

Those are great tips from a personal perspective, but not so much a business perspective. If you do have a C-Corp, paying out dividends is a great way to lock in the low rates that exist on "qualified" dividends, which stem from shares held on a long-term basis.

I'd say most people may also wish, if taxes will increase, to potentially consider using longer methods of depreciation and not using all bonus depreciation, or alternatively, making investments in the next tax year which may help reduce any tax burden then.

Contribution to retirement plans continue to be a great way to save for retirement and get a break in taxes as well.

Though I'd say that selling your business because of higher taxes is probably a bit unnecessary. If you are thinking of selling in the near future, and have a C-Corp, I'd say a pay out of dividends would be meaningful. It's probably a bit "too late" to seriously maneuver any sale of the business.