Things To Consider Heading Into The New Year

This information was forwarded to me from a fellow Franchise owner, Thank you Mr. Henry Swint.


As 2011 comes to a close, economic uncertainty continues to be a hot topic in Washington, D.C. and around the world. The Joint Select Committee on Deficit Reduction (i.e. the Super Committee) created by the Budget Control Act of 2011 failed to reach a bipartisan agreement to address the financial challenges facing the United States. This failure to reach an agreement has left huge tax questions unanswered. The following are selected key issues of interest:

· Alternative-minimum tax patch;
· Social Security tax reduction of 2%;
· Special accelerated depreciation;
· Higher education deduction;
· Home energy tax credit; and
· Charitable contribution of IRA assets.

Tax Provisions Expiring at the End of 2012

· Top 35% income tax rate;
· Top 15% long-term capital gain and qualified dividend rates and
· Estate and gift tax rates and exemption.

Tax Provisions Taking Effect in 2013

· 3.8% tax on net investment income for joint filers with adjusted gross income more than $250,000
· ($200,000 for single filers). This additional tax applies to taxable interest, dividends, capital gains,
· rents, royalties and some annuities;
· Personal exemption phase-out;
· Itemized deduction limitations; and
· Reduction in flexible spending account limits.

WITH UNCERTAINTY COMES OPPORTUNITY. The best way to take advantage of the changing legislation landscape is to understand your options and be ready to act. I SUGGEST that you investigate all planning opportunities before year-end.YEAR-END TAX PLANNING is not complete without a review of your RETIREMENT AND ESTATE PLANS. Early planning is key to making the most of your opportunities. I am available to help with your planning. Please contact me if you would like my assistance in developing a strategy for you before the year is out or in the future. Remember life constantly changes and so do our plans. Properly planning for taxes and life events helps ease the burden. Tax evasion is against the law. Tax avoidance is your civic duty.

Here are 10 things you can do before the year is over for increased tax savings:

1. Donate to Charity (Fall into Spring cleaning, remember to get a receipt for donations)
2. Sell off bad investments (up to $3,000 loss)
3. Pay your December mortgage Payment in December
4. Hold off on bonuses and extra income until the New Year.
5. Max out your 401(k) ($16,500 tax free maximum)
6. Pore over out of pocket medical costs
7. Get Married (get it legally activated now, have the ceremony later
8. State Sales Taxes for large purchases (for buying cars, boats, planes etc.)
9. Energy efficient home improvements (not all qualify)
10. Military reservists travel expenses
And many more?If you or someone you know need tax planning advice please don?t hesitate to call.

Enjoy a HAPPY NEW YEAR by starting your tax planning now.