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November 2012

Issue: 43


Year-End Tax Planning


The election is over (finally!) and year-end is upon us which means it is time to start thinking about your 2012 tax situation.  President Obama and congress are currently trying to decide what to do about taxes for 2013.  While we don't know for certain what is going to happen in 2013 (and may not know for a little while) it is a safe bet that taxes will be going up for individuals that make more than $200,000 ($250,000 married couples).  With this being the case, it may make sense to accelerate income into 2012 or to defer expenses into 2013 for those high-income earners to ensure you are paying taxes at the current lower rates.  Also, we do know for certain that capital gains rates are going up in 2013 for these same high-income earners.  If you fall into this category and have some investments with significant unrealized capital gains, it may make sense to sell them now to lock in the lowest capital gains rate we may see for some time.  I have included a few articles in this newsletter that will help explain some of the looming changes and a few tax planning strategies to help offset these changes. 
If you think you will be affected by the potential 2013 tax law changes and want to learn more, feel free to give me a call and we can review your tax situation before year-end and see if and how you may be impacted.  Hopefully we will know sooner rather than later what the tax law changes will be but it will help to be proactive nonetheless. 
I hope everyone has a wonderful and safe holiday season! 
Enjoy this month's newsletter! 
Obama Victory Leads to Fast Tax Moves by Wealthy Before 2013


President Barack Obama's re-election means his administration will push to let tax cuts enacted during the George W. Bush era expire for high earners, as scheduled, at year-end. Obama wants to increase the top federal income tax rate to 39.6 percent from 35 percent, boost rates on long-term capital gains to as much as 23.8 percent, and shrink exemptions from estate-and-gift taxes.


"If you have to put a movie title on what's going to happen from now until the end of the year it would be: 'The Fast and the Furious,'" said Jeff Saccacio, a personal financial services partner at New York-based PricewaterhouseCoopers LLP. "The wise, smart people are preparing themselves for a sunset of the Bush tax cuts." 


Top 5 Year-End Corporate Tax Planning Tips


A Thomson Reuters tax analyst is offering end-of-year tax-planning tips for U.S. corporations, detailing various options based on possible legislative actions in Congress. Thomson Reuters noted that many significant tax provisions will expire at the end of the year and it is not yet clear what Congress intends to do.


A number of important provisions expired at the end of 2011, including the business research credit. Others will expire at the end of 2012, including the bonus depreciation allowance, expensing allowance and Bush-era tax cuts. Congress could retroactively extend the rules that have already expired and extend those that are about to expire at the end of this year, or it could pick and choose which of these provisions will continue.


Read more... 

In This Issue
Obama Win Leads to Tax Moves For the Wealthy
Corporate Tax Planning
Personal Tax Issues
Upcoming Tax Deadlines

14 tax issues to watch after the election


Personal tax matters could see changes in 2013,  the next Congress and president will face a heaping helping of unfinished tax business. Here's the second part of our two-part story on the most important unresolved personal tax issues - along with some fearless predictions. 



Upcoming Tax Deadlines

Please let us know if there is anything we can do for you!!


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