This decision – heck, any decision – has been much anticipated so that people could do their end-of-the-year planning.  The good news is that it also comes with some direction about the estate tax so we can all move forward with estate tax planning as well.

What should you do?

You have probably been talking to your accountant about this contingency, and now you need to act.  If this means shifting income from this year to next, taking more expenses this year, converting an IRA to a Roth, etc., you now need to make all that happen before the end of the year.   (As if you didn’t have enough to do already.)

1. Call your accountant if you have not already for end-of-the-year tax planning.  The possible Bush tax cuts extension is making a mess of everyone’s planning. Come join in the fun.
    
2. If you’re going to convert your IRA to a Roth IRA this year so that you can pay the taxes over two years, you need to do that now.
    
3. Get your payroll service in order.  If you have not been happy with your payroll service or are hiring someone for the first time, you need a solid payroll company.  January is the best time of the year to make a change.
    
4. Get your business planning done.  Record your accomplishments.  Let go of your “failures.”
    
5. No New Year’s Resolutions.  Remember, they don’t work in January.  Wait until at least February 2^nd.  The gym will be emptier by then anyway.

It’s the home stretch of 2010.  Enjoy!