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Year-End Tax Planning: (In Uncertain Times)
Year-End Tax Planning: (In Uncertain Times)
Year-End Tax Planning: (In Uncertain Times)
Overview
Where Are We Now? What Is Scheduled to Expire?
Year-End Planning Tips
What We Do Know
If Congress does nothing - Bush tax cuts will expire
- Corporate reform
- Bush tax cuts - Taxing large partnerships - International repatriation
- Millionaire surtax
New debt ceiling by November 2012
Provision
Flexible spending arrangement the maximum drops to $2,500 per plan year New HI (hospital insurance tax) on high-income taxpayers New 3.8% Medicare tax on investment income Medical care itemized deduction threshold increases to 10% of AGI starting in 2013 (except from 20152016) States will be required to provide federally approved insurance plans Premium assistance credit Excise tax on uninsured individuals Excise tax on applicable large employers Insurer reporting requirements Eligible premiums included in cafeteria plans Increase in medical deduction threshold for taxpayers age 65 and over Excise tax on high-cost employer plans
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2014
2017
2018
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Start Now!
Dont wait Have a Plan A and a Plan B
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Why Projections?
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Investments
Are you diversified? - What is held in a taxable account vs. retirement account?
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Other Considerations
Look at stock options that will expire in 2013 or 2014 - Should you exercise them now?
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Defer Deductions?
Many factors in making this type of decision - Alternative Minimum Tax (or AMT)
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Charitable Contributions
Phase out of itemized deductions is scheduled to return in 2013! A 100% charitable contribution this year (with a maximum rate of 35%) is better than a 20% deduction next year (even if the rate is 39.6% or higher)
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Education Incentives
American Opportunity Tax Credit expires at end of 2012 Should students prepay student deduction if they have not maximized the deduction for 2012? The 529 plan still is around and is a great option!
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Retirement Plans
Qualified Charitable Distributions from IRAs - Popular provision
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Questions