Click here to close now.

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
Countless business models have spawned from the IaaS industry. Resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his General Session at 16th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, broke down what we've got to work with and discuss the benefits and pitfalls to discover how we can best use them to d...
"AgilData is the next generation of dbShards. It just adds a whole bunch more functionality to improve the developer experience," noted Dan Lynn, CEO of AgilData, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
Agile, which started in the development organization, has gradually expanded into other areas downstream - namely IT and Operations. Teams – then teams of teams – have streamlined processes, improved feedback loops and driven a much faster pace into IT departments which have had profound effects on the entire organization. In his session at DevOps Summit, Anders Wallgren, Chief Technology Officer of Electric Cloud, will discuss how DevOps and Continuous Delivery have emerged to help connect dev...
In their general session at 16th Cloud Expo, Michael Piccininni, Global Account Manager - Cloud SP at EMC Corporation, and Mike Dietze, Regional Director at Windstream Hosted Solutions, reviewed next generation cloud services, including the Windstream-EMC Tier Storage solutions, and discussed how to increase efficiencies, improve service delivery and enhance corporate cloud solution development. Michael Piccininni is Global Account Manager – Cloud SP at EMC Corporation. He has been engaged in t...
To many people, IoT is a buzzword whose value is not understood. Many people think IoT is all about wearables and home automation. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed some incredible game-changing use cases and how they are transforming industries like agriculture, manufacturing, health care, and smart cities. He will discuss cool technologies like smart dust, robotics, smart labels, and much more. Prepare...
"We have an new division call the Cloud Monetization Division, based on our platform Powua, which empowers enterprises and organizations to take the journey to cloud monetization and to make it a reality," explained Ian Khan, Manager, Innovation & Marketing at Solgenia, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and easy to use. MangoApps has been named a "Market Leader" by Ovum Research and a "Cool Vendor" by Gartner. 20,000+ business custome...
SYS-CON Events announced today that Alert Logic, the leading provider of Security-as-a-Service solutions for the cloud, has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo® and DevOps Summit 2015 Silicon Valley, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Alert Logic provides Security-as-a-Service for on-premises, cloud, and hybrid IT infrastructures, delivering deep security insight and continuous protection for cust...
In the midst of the widespread popularity and adoption of cloud computing, it seems like everything is being offered “as a Service” these days: Infrastructure? Check. Platform? You bet. Software? Absolutely. Toaster? It’s only a matter of time. With service providers positioning vastly differing offerings under a generic “cloud” umbrella, it’s all too easy to get confused about what’s actually being offered. In his session at 16th Cloud Expo, Kevin Hazard, Director of Digital Content for SoftL...
The cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...
SYS-CON Media announced today that CloudBees, the Jenkins Enterprise company, has launched ad campaigns on SYS-CON's DevOps Journal. CloudBees' campaigns focus on the business value of Continuous Delivery and how it has been recognized as a game changer for IT and is now a top priority for organizations, and the best ways to optimize Jenkins to ensure your continuous integration environment is optimally configured.
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional Social, Mobile and Cloud user experiences, our solutions help large and medium-sized organizations dramatically improve produc...
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
Live Webinar with 451 Research Analyst Peter Christy. Join us on Wednesday July 22, 2015, at 10 am PT / 1 pm ET In a world where users are on the Internet and the applications are in the cloud, how do you maintain your historic SLA with your users? Peter Christy, Research Director, Networks at 451 Research, will discuss this new network paradigm, one in which there is no LAN and no WAN, and discuss what users and network administrators gain and give up when migrating to the agile world of clo...