So, 2012 is finito. It’s over. We survived.
Let’s get going on 2013.
What’s your plan?
As entrepreneurs, we have a big mountain to climb next year. We’re facing another serious increase in costs in 2013 and some major regulations that will take time and expense to comply with.
If you run an already successful business, you are facing the abolishment or the curtailing of the limits we can write-off on equipment, technology and building improvements. This is known as the Section 179 deduction. It will result in our spending money on these things ONLY if necessary, not proactively like prosperity (and the Bush Tax Law) encouraged us to do.
We can also expect to face a limitation on the deductibility of gifts to registered tax-exempt entities like our church, local service organizations, charities, my old schools that did so much for my global understanding of the world, and many charitable donations we give that our team recommends to me such as student funding, special tournaments, the local little league and so many more. I think we would try to keep our small gifts consistent even if they were not tax advantaged, but the major gifts that support the bigger projects will have to be trimmed back, maybe by as much as 50%. “Non-Profit America” will feel this severely, unfortunately.
One of the great benefits of the Bush Tax Law was the provision which allows the company to pay the health insurance premiums for the team and write it off 100% while the employee is not charged tax on the “gift”. In 2014, that’s going to change too, which means that your employees will now pay a tax on the health insurance you give them. This is a brand new tax on the middle class, not a tax increase.
So what’s your plan for 2013?
How are you going to get up that mountain the best way, risking more if you have to, to be on top this time next year?
Here are my suggestions:
The BEST way to survive the coming economic crisis is to make more money. There are only two factors in that equation, you can bring in more or you can spend less. I would begin NOW to assess every expense you made last year and every income source to maximize BOTH sides of the equation right away, in January.