Unless legislative action occurs, 2012 marks the last year of a historically low tax environment. Beginning in 2013, income taxes are scheduled to increase – for some taxpayers in higher tax brackets that increase will be substantial: Tax item 2012* 2013* Ordinary income 35% 43.4% Dividends 15% 43.4% Capital gains 15% 23.8% Tax rates reflect
The Alternative Minimum Tax (AMT) will affect an additional 27 million taxpayers in 2012 if Congress fails to act and amend the income guidelines by the end of the year. Asking your clients if they have consulted with a tax preparer about the possible impact of the AMT provides an opportunity for you to discuss
As clients prepare for tax season, it is an opportune time to talk about the rules for gifting assets to family members as well as giving to charities. There are several strategies clients may want to consider to make the most of their gifts. Make a gift to family members For clients considering gifts to
As year-end approaches, it can be beneficial for clients to connect with their tax professionals to get a better sense of their personal status and discuss potential strategies to minimize their tax bite. One specific area to consider is tax deductions. Historically, as a taxpayer’s income has increased, the benefit of claiming itemized deductions like
On November 21, the Co-Chairs of the Joint Select Committee on Deficit Reduction released a statement that said, in part, “After months of hard work and intense deliberations, we have come to the conclusion today that it will not be possible to make any bipartisan agreement available to the public before the committee’s deadline.” This
The signing of the Budget Control Act of 2011 into law on August 2, 2011, simultaneously raised the federal debt ceiling by $900 billion while enacting $917 billion in federal discretionary spending cuts over the next ten years. Additionally, the new law created a bipartisan Congressional committee (“Joint Select Committee on Deficit Reduction” or “Select
With income restrictions on conversions lifted beginning in 2010, Roth IRAs became accessible to affluent investors (specifically those with incomes greater than $100,000) for the first time. It’s reasonable to suggest that many of these investors are not well-versed in some of the intricacies of Roth IRAs, including the option of recharacterization. Now is an
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
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.
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