Wrapping up your Year-end Tax Planning
Christmas is right around the corner and you might be wrapping all the gifts to put under your tree. But before the calendar changes to 2012, it’s time to give thought to your 2011 year-end tax planning.
Without further legislation, many changes will happen after December 31, 2012. This gives you a limited opportunity to take advantage of current tax rates and law to incorporate in your plan.
Are you subject to AMT?
If you are, you may want to take a look at the impact of the timing of various deductions. Consider when you pay any state and local income taxes, property taxes, and/or miscellaneous itemized deductions. Are you considering buying a car or making a large purchase in the near future? The sales tax deduction is available for 2011, but currently is not for 2012.
Did you Buy or are you Planning to Buy New Equipment?
For business owners, the 100% bonus depreciation is available on qualified, new equipment through the end of 2011 and reverts back to 50% at the end of 2012. Have you budgeted for 2012? This could impact if you would want to delay or accelerate income or deductions in 2011. Also, consider contributing to a retirement plan.
Does your Estate Plan Need Updating?
The current $5 million dollar exemption and 35% rate, creates numerous opportunities. The proper estate plan will help you identify the best way to accumulate, preserve and protect your wealth by putting in place a plan to meet your objectives.
With a little planning, you and your team of experts can develop a plan that provides the certainty of meeting your income, business, or estate needs today and provides the flexibility to deal with the uncertainty ahead. If you have questions or need assistance, please contact Anders or your tax advisor.