Capital Gain Taxes Will Rise in 2013 says Los Angeles Income Tax Planning Attorney and Income Tax Litigator Bruce Givner

by Bruce Givner on September 7, 2012

“The current tax rate on long term capital gains is 15%,” explained Los Angeles Income Tax Planning Attorney and Income Tax Litigator Bruce Givner.  “However, because certain tax provisions will change at the beginning of 2013, the tax rate on long term capital gains will effectively increase.”

If the Bush 2001 and 2003 tax cuts are not extended, the regular top tax rate on capital gains will increase from 15% to 20%.  Furthermore, the Pease amendment, which reduces the Schedule A charitable deduction by 3% of the amount by which adjusted gross income exceeds a specified threshold, up to a maximum reduction of 80 percent of itemized deductions, will come back into effect.  Finally, the Obama healthcare package will impose an additional 3.8% tax on the net investment income, which includes capital gains, of high-income taxpayers.

“Added all together, some taxpayers could see a significant tax increase if they wait until 2013 to sell their long-term capital assets,” Givner explained further.  “Any taxpayer who is considering or anticipates the sale of any long-term capital assets over the next six months should consult an experienced income tax planning attorney to take advantage of the lower long-term capital gain tax rates that are in effect for the next four months.”

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles County.  Call Los Angeles Income Tax and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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