Below is another very helpful tax missive from our friends at Kovarik and Kim CPAs detailing many of the anticipated tax changes coming our way at the end of this year. You might remember that the Bush-era tax cuts will be expiring on 12/31 if Congress doesn’t act before then. In addition, the new Healthcare Reform legislation signed into law by President Obama will also usher in another slew of tax changes (read “increases”). The real impact will be on the higher income and wealthier individuals.
The high points in summary are as follows:
- When fully phased in, the top long-term capital gains rate could climb from 15% to 23.8% including applicable surtaxes, and ordinary dividends will no longer have preferential treatment.
- Regular marginal tax rates will increase from 35% to 39.6%.
- Shifting income into 2010 could be an interesting tax planning strategy to review in light of the changing future environment.
As in every year, we help coordinate tax planning discussions with our clients CPAs and this year could very well be one of the most important in recent memory. Add to the list Roth IRA conversions and other phase-outs and it could be quite interesting and provide plenty of opportunity for our CPA brethren to add value.
The last time I checked, tax savings are just as valuable and spend just the same as profits from investment accounts.
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- Tom Hanks and Wilson; Curing Loneliness at the Top
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One Response to “Getting Ready For Higher Taxes”
September 10th, 2010 at 6:14 am
contracpetive pill Says:
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