Welcome!

News Feed Item

Taxmageddon: How You Can Prepare -- Five Actions to Save Taxes Now

LOS ANGELES, Nov. 26, 2012 /PRNewswire/ -- What Fed Chairman Ben Bernanke has called the "fiscal cliff" is imminent – but there is still a little time to limit the damage to your personal wealth. According to tax specialist Suzanne Payne of the Los Angeles-based CPA firm Gerber & Co., a handful of prudent, strategic decisions – right now – can affect your after-tax income and near-term wealth. "The upcoming expiration of Bush-era tax cuts, combined with across-the-board cuts in government spending, create a time of great uncertainty and peril," Ms. Payne says. In response, she and her specialist associates at the Gerber firm have prepared a core list of actions which every concerned taxpayer should review.

1.

Accelerate non-business income into 2012. The anticipated bump in rates and new taxes turns upside down the conventional wisdom which holds that it's always savvy to defer income.  In the upcoming environment, deferring income by even one year may result in a substantially larger tax payment.




For example, consider selling your appreciated securities before the end of this year specifically to lock in the lower tax rates. On the flip side, you may want to wait until next year to sell any securities that have lost value. Such losses could provide a more valuable offset of future capital gains.



2.

Time your home sale. If you are planning to sell your home, consider moving the closing into this year. Starting January 1, 2013, gain from the sale of a home in excess of the exclusion for a primary residence ($250,000 for single individuals/$500,000 for married joint filers) will be subject to a 3.8% surtax if the taxpayer's income exceeds a threshold amount.



3.

Accelerate business income into 2012, and wherever possible, defer business expenses into 2013. This will result in a larger tax saving when income is taxed at the higher rates anticipated in 2013.



4.

Time your payments of itemized deductions. In 2013, taxpayers will again be subject to a limitation on some itemized deductions to the extent that their adjusted gross income exceeds a certain threshold amount. Taxpayers who anticipate having incomes that exceed the threshold in 2013 should consider accelerating payments of property tax, state income tax deposits, charitable contributions, and miscellaneous itemized deductions into 2012.



5.

Review your estate planning to ensure that it takes full advantage of expiring provisions. Current law allows individuals to make gifts during their lifetime of up to $5,120,000 before January 1, 2013, without incurring a gift tax. (The exemption for lifetime gifts does not include smaller annual gifts of $13,000 per person or direct payments to schools or healthcare providers.) Unless Congress acts, the estate and gift tax exemption will fall to $1,000,000, and the tax rate on transfers above the exemption will increase from 35% to 55% on January 1. Although no one can predict what Congress will do, it is likely that this is a window of opportunity for estate and gift tax planning that is closing.



"One more caveat," she adds. "Before you make any significant changes, keep in mind that at any time these scheduled changes could be reversed or modified by Congress. And that's only one reason our firm says, 'Surprises are for birthdays, not for tax time.'"

Of course, Ms. Payne urges all readers to check with their own advisors before considering any of these serious financial actions.

"We know that taxes are going up," says Mo Graber, Tax Director at the Gerber firm. "All that is being decided now in Washington is how to pluck more feathers from the goose with the least amount of hissing."

SOURCE Gerber & Co. CPAs

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We are a leader in the market space called network visibility solutions - it enables monitoring tools and Big Data analysis to access the data and be able to see the performance," explained Shay Morag, VP of Sales and Marketing at Niagara Networks, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for s...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.