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As we near the end of a tumultuous 12 months with a tug-of-war on tax reform in Congress, many small-business owners are probably wondering what they need to know about their 2012 taxes.

1. Deduct expenses this year and defer taxable income, if you qualify. Most small businesses use the cash method of accounting for tax purposes. If that is your situation and you expect to be in the same (or lower) tax bracket next year, it’s a smart move to defer taxable income into 2017 and accelerate deductible expenses. This could include deferring some billings until Dec. 31, writing checks before the year ends to pay deductible expenses, and charging deductible business expenses on credit cards.

2. Set up a retirement plan and make the maximum contribution. Consider establishing a retirement plan for your business. Many pension companies will do a free analysis of which plan is right for you. If your business has an existing retirement plan, ask your pension administrator to figure out the maximum potential contribution for the 2012 year based on your staff size (and available budget). If you have no employees, consider establishing a “solo 401K” plan before the end of the year, as this type of plan typically permits a larger contribution than most retirement plans.

3. Deduct the expense of certain equipment purchased in 2012. Internal Revenue Code section 179 allows a business to elect to treat the cost of certain property (such as computers, office furniture, equipment, and machinery used for business) purchased this year as a one-time deductible expense. Companies can expense up to $139, 000 for 2012. The deduction is phased out dollar-for-dollar for purchases exceeding $560, 000. So, for example, if your company bought equipment for $572, 000, the maximum eligible 179 deduction would be $127, 000 ($139, 000 reduced by the $12, 000 excess).