Regardless of elections, year-end tax planning moves forward…with or without Congress.
The fate of many of the tax incentives taxpayers have grown accustomed to over recent years will likely remain up in the air until Congress and the Administration finally face off weeks before year-end 2012. While the results of Election Day will have bearing on the outcome, no crystal ball can predict how the ultimate short-term compromise will unfold. As a result, some year-end tax planning must be deferred and executed ”at the eleventh hour” only after Congress passes, and the President signs, what will likely result in a stopgap, temporary compromise for 2013. Tax rates for higher-bracket individuals and a long list of “extenders” provisions such as the child tax credit, the enhanced education credits and the optional deduction for state and local sales tax, hang in the balance. Real tax reform for 2014 and beyond, in any event, won’t be hammered out until 2013 is well underway…if then. Don’t let your tax planning be subject to the whims of what “may be” or “could have been.”
Regardless, do NOT wait until the “eleventh hour” before doing your year-end tax planning. Consult your CPA or tax professional today!
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