The heat is on. With a little over a month left until the end of the year, some wealthy Americans now face significant year-end tax decisions as certain tax laws are set to expire.
Tax Rate Increase: President Obama wants to increase the federal income tax rate for wealthy individuals, which is defined as individuals who earn more than $250 thousand per year. The current tax rate is 35%. The rate will increase to 39.6% on January 1, 2013 as the law is written now. If a 2012 bonus or commission could push your 2013 earnings above $250 thousand, ask your employer to pay your incentive in 2012.
Capital Gains: Tax rates on long-term capital gains could increase as much as 23.8%. If you are contemplating the sale of a capital asset in 2013, moving the sale to 2012 could result in significant savings.
Estate Tax: The individual lifetime estate-and- gift-tax exclusion for 2011 and 2012 is $5.12 million or $10.24 million for married couples. Tax exempt levels are expected to drop to $1 million for individuals, $2 million for married couples.
Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.