ZEN of WEALTH llc

                               THE FISCAL CLIFF IS NEAR

     Going off a Cliff does not end well

It looks like TAXES will be rising for many of us in 2013 and beyond.

The BUSH TAX CUTS are set to EXPIRE on December 31, 2012.  Top tax rates will increase

For married couples, filing jointly, earning over $218,000

Income Level                               Current       if Bush Expires    Obama proposes         

$218,450-241,900                33%                 36%                  33%

$241,900-390,000                33%                 36%                  36%
$390,000 ++                       35%                 39.6%                39.6% 

President Obama is proposing significantly higher tax rates on the “RICH”, with the top income tax rates rising by 9% to 13%.

Under the Obama’s proposals, Investment Income is treated very harshly, with the.

Maximum rate on Qualified Dividend Income rising from 15% to as high as 43.4%.

The Maximum tax rate on Long-Term Capital Gains would rise from 15% to 23.8%.

It is important to look at Strategies to limit the impact on higher taxes on your ability to provide for your family and reinvest in your business.

Here we highlight 7 areas that deserve your serious consideration.

1. take your capital gains now, before taxes go higher?

Usually tax considerations take a back seat to investment strategy, but the

huge penalty tax rate proposed by the President places tax strategy at the fore.

2. accelerate your medical expenses into 2012,

as the threshold for deductibility is scheduled to jump from 7.5% of AGI to

10% of AGI in 2013.

3. if you qualify for higher education tax credits

determine if accelerating 2013 payments into 2012 gives you the better result.

4. postpone some deductions to next year (if you itemize deductions)

                Then, In 2013, pre-pay your 2014 state and local income taxes and real estate taxes.

                Defer your Charitable contributions until next year.

5. now is the time to do serious estate planning, as the estate tax exemption is scheduled

    to fall from $5,000,000 to $1,000,000.

                work with our experts to properly structure and fund the trust.   

6.  Look to reduce your Taxable Income by maxing out your qualified and

     non-qualified benefit plans.? 
                The beat way to pay lower taxes is lower your income. Benefit plans can build wealth with

              pre-tax dollars. IRA’s and 401(k)s are just the tip of the iceberg. 

7.  Look to reduce your Taxable Income thru tax advantaged investments.  

Chet M. Rothman

Founder, 1992

Zen of Wealth llc

The Wealth Strategists at Zen of Wealth llc work with you to create wealth, manage wealth and preserve wealth.

Disclaimers
This article is distributed for informational purposes only. This article contains the current opinions of the author and not those of any of our partner companies.  The author’s opinions are subject to change without notice. The author may or may not own the securities referenced and, if such securities are owned, no representation is being made that such securities will continue to be held.   

Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. 

Please seek out capable accounting and tax advice before making any decisions.

No part of this article may be reproduced in any form, or referred to in any other publication, without express written permission of Zen of Wealth llc. © 2012 .