Debt ceiling resolution has been reached, but investors remain cautious

Debt ceiling resolution has been reached, but investors remain cautious

Congress and the White House have reached an agreement to raise the federal debt ceiling and have approved a package of spending cuts this week, but not until after weeks of debate that added to growing uncertainty in the markets and a lack of confidence from investors. A recent survey by TNS Global Market Research

Take advantage of the 0% capital gains tax rate

Take advantage of the 0% capital gains tax rate

Most of your clients are probably aware that the historically low, 15% maximum tax rate on long–term capital gains has been extended for the next two years. However, they may not be aware that taxpayers in the lowest two tax brackets actually benefit by paying no capital gains taxes on the sale of appreciated assets.

Muni tax break under pressure

Muni tax break under pressure

A Senate proposal to eliminate the tax–exempt status of municipal bonds may change the municipal bond market after 2011 and is an important piece of legislation to follow in the coming months. The tax break for investors has been under pressure since Congress began focusing on strategies to cut back on government spending and reduce

Encourage clients to make the most of their payroll tax cut

Encourage clients to make the most of their payroll tax cut

Encourage clients to make the most of their payroll tax cut For 2011 only, new tax law imposes a historic reduction in Social Security (FICA) taxes, cutting by two percentage points the employee’s portion of the 6.2% tax. Savings per worker will vary with income, but could be as much as $2,136 for those earning

Federal debt crisis solution could mean higher taxes

Federal debt crisis solution could mean higher taxes

Government action on the nation’s deficit in the coming months may result in future tax increases, adding to the challenge of long-term planning. As a result, it makes sense for clients to focus on tax strategies now, and take advantage of the clarity in tax law that exists through 2012. The most recent debate on

Make the most of deductions and exemptions

Make the most of deductions and exemptions

As taxpayers begin collecting their W-2s, 1099s and other tax forms, many are not aware of new provisions benefiting itemized deductions and personal exemptions. Prior to 2010, the value of claiming deductions and exemptions on the tax return diminished (or “phased out”) at higher income levels. For example, see phase-out limits from 2009: Personal exemptions

Tax law creates potential opportunities for taxpayers to save more

Tax law creates potential opportunities for taxpayers to save more

The federal tax law extended today’s historically low tax rates through 2012 and created potential savings opportunities for taxpayers. Clients may want to explore ways of capitalizing on the tax rates now before future changes occur. Higher taxes are already on the horizon, including a new 3.8% Medicare surtax on investment income that becomes effective

Estates in 2010 have two options

Estates in 2010 have two options

Since the estate tax was technically repealed at the start of 2010 as a result of a sunset provision within EGTRRA, planning has been challenging due to uncertainty around potential legislative changes that would impose different rules. The signing of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. into law in