Pay for stuff this year or next (taxes)?

I see a lot of financial advisers saying to take income this year (bonuses, capital gains etc) to avoid tax hikes coming next year but I've never heard any advice on this. I made a relatively large (for me) purchase and have the option of paying when I'm ready. So, if income should be taken this year, it stands to reason expenses should be delayed to next year so as to make taxable income less. It would seem that this would also include equipment purchases. Any accountant types here to show me how I'm wrong?

Makes sense to me Mick.

I would second that. Dont pay for it till next year.

Take income this year would be my opinion

It would also depend on the depreciation schedule of your purchase, if that applies. If it's going to be depreciated over many years, I'd probably just start this year personally. However, I'm not an accountant, and would ask one about it.

i am cashing everything out before the end of the year, not buying back in till the cliff is worked out the dow keeps topping and falling, if you studdy charts the dow is coming down the 2nd shoulder or the head and shoulders formation, that tells me its time to get out of the markets completely. Big layoffs and job cuts are coming reguardless of which way the deal falls. I expect the dow to drop 20% in 2013. Now is a good time to buy short and long term corporate bonds and metals,

Since I am an accountant I can tell you that the answer to your question is - "it depends".

On what? Your entire situation. However, If you purchased a piece of equipment, the IRS regulations are, that the day that the equipment is place in service, is the day that depreciation starts. Thus, it would probably be better if you paid for it this year, opted out of the bonus depreciation (and assuming that this item would qualify as 7 year MACRS property), elected not to take Section 179 either, and only use 14.29% of the purchase price as an expense this year. However, another rule comes into play if you didn't have any other equipment placed in service this year, you would have to use the mid-quarter method which would further reduce the depreciation portion for 2012. And then the amount of deprecation for 2013 would then be larger. There are other options, but you should get the idea by now.

Short answer? Pay for it now, it will work out to your advantage in the long run.