Reply to 1%ers: What are you doing with your $$ before Dec 31?

Forum Index » Money and Finances

Reply to "1%ers: What are you doing with your $$ before Dec 31? "

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]The title of this thread is unfortunate, because there are tax strategies that can benefit anyone, not just you 1%ers.  If you search online, there are dozens and dozens of articles suggesting strategies. https://www.google.com/search?hl=en&gl=us&tbm=nws&q=tax+strategy+2012&oq=tax+strategy+2012&gs_l=news-cc.3..43j43i400.16170.24511.0.24979.17.5.0.12.0.0.136.357.4j1.5.0...0.0...1ac.1.W9iosCcATdk#hl=en&safe=off&tbo=d&gl=us&tbm=nws&sclient=psy-ab&q=tax+strategy+2012+year+end+estate+capital+&oq=tax+strategy+2012+year+end+estate+capital+&gs_l=serp.3...8401.8401.5.9066.1.0.1.0.0.0.0.0..0.0...0.0...1c.1.SsMuaovmlHA&pbx=1&bav=on.2,or.r_gc.r_pw.r_cp.r_qf.&fp=92b6671ad676249a&bpcl=38093640&biw=1400&bih=937

Some of the most common for general application:

1. Get paid in 2012 instead of 2013. Since marginal tax rates likely will increase in 2013, you'll pay less tax in 2012, albeit sooner. See if your employer will pay any year end bonus in Dec 2012 rather than Jan 2013, get an advance on your paycheck, or maybe cash in vacation time.

2. Swap around any investments you have in taxable accounts, so you can "lock in" current long-term capital gains tax rates.  Tax rates on long-term capital gains are expected to increase in 2013 and beyond, so sell those investments now and re-purchase other comparable (but not identical) investments. You will pay more taxes in the short term, but (maybe) will pay less than you'd pay later in the future.  Bonus points if you can offset sales of gainers against losers, because you can avoid taxes entirely with this hedge move.

3. Make gifts now to minimize future estate taxes.  Estate tax rates likely will increase in 2013. This might not make sense if you expect to live several more years, unless your estate is enormous. If your estate is that enormous, you surely can pay someone more informed than I am to give you advice.

4. Take advantage of itemized deductions now. Some of those itemized deductions are expected to be reduced in 2013, so get the maximum tax benefit now.  For example, if you're planning to give $1000 to your favorite charity, give it in Dec 2012 rather than Jan 2013.

I'm no investment professional, and I'm just repeating what I've been reading lately, so don't follow this advice blindly. Do your own research.  Good luck.

Sam2[/quote]

Best post of this whole thread, IMHO.  Thanks, Sam2![/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics