The Economic Growth and Tax Relief Reconciliation Act (EGTRAA) of 2001 is scheduled to sunset at the end of the year. The uncertainty over the EGTRRA sunset and how it will affect 2013 tax rates makes tax planning difficult for individuals. C-Corporations, however, should keep in mind that they need to decide whether to accelerate or defer their income as EGTRRA sunsets will not affect corporate rates. There are no significant proposals to raise corporate tax rates, yet.
With so much uncertainty, it may be advisable to accelerate deductions or defer income to another year if it will put you in a more favorable tax bracket.
To learn more contact an H&S tax professional today.