Great uncertainty — Savvy tax planning calls for an early start this year

Description

Abstract: When it comes to taxes, 2012 will likely bring great uncertainty. So to prepare an effective tax plan this year, it’s necessary to look ahead at the many issues in flux. While the presently low income and capital gains rates don’t expire until 2013, taxpayers should immediately consider a wide variety of tax planning strategies — including possibly selling appreciating assets and accelerating income into 2012. This article includes a chart showing the scheduled tax rate changes, while a sidebar notes that the Patient Protection and Affordable Care Act of 2010 will make higher-income taxpayers subject to two new Medicare taxes.