“You can view this impending increase as doomsday, or you can take a more active approach,” said Tom Rink, chairman of Strauss Troy’s Tax Department. “There are a number of opportunities to reduce the risk of increased tax burden by taking steps in 2012.”
“Even if one is hopeful that the tax laws will be changed, or an agreement will be struck, it is essential to establish a game plan in the event that the tax cuts are not renewed for 2013,” said Joy Hall, a tax and compliance attorney at Strauss Troy.
“While not associated with the expiring tax cuts, the Affordable Care Act (ACA), which the Supreme Court mostly upheld this summer, carries an additional 3.8% Medicare surtax on net investment income and gains. To avoid this tax, consider disposing of real estate and other investment assets that have significant gains, said Patrick J. Newton, tax and estate planning attorney at Strauss Troy.
Three Easy Steps You Can Take Today:
- Read our article TAXMAGEDDON: What You Must Do Now In 2012To Avoid Uncertainty In 2013
- Scan your household budget, investments and estate plans to get a sense of how these tax changes might affect you.
- Contact a member of our legal tax and estate planning team to schedule your appointment before the end of the year to learn how best you can mitigate these tax increases.