As Congress debates fixes for the budget deficit and reviews options to grow revenues, provisions in the tax code that have benefited investors are under scrutiny. Tax reform proposals, such as the Bowles-Simpson recommendations, call for a significant scaleback in the use of tax preference items, including many itemized deductions. More recently, plans endorsed by
With uncertainty around key tax rates as 2013 nears, many clients are looking for tactical strategies to consider in 2012 while rates are still historically low. In fact, for some clients, tax rates on long-term capital gains cannot go any lower: In the 10% and 15% tax brackets, the capital gains tax rate is zero.
While there has been no action yet on the fiscal cliff, high-income earners are wise to prepare for higher taxes, fewer or capped deductions, or all of the above. The window of opportunity to take advantage of tax strategies while tax rates remain historically low is narrowing, so now is the time to contact clients