Now That the Election Is Over, How Do You Plan for 2013’s New Tax on Investment Income?


Originally published in Daily Tax Report on December 3, 2012.

President Obama’s re-election and the Democrats’ retained control of the Senate mean that a repeal of the Patient Protection and Affordable Care Act before its tax provisions go into effect in early 2013 is highly unlikely.

As a result, investors now fear a potential top tax rate as high as 43.4 percent due to the combined impact of expiring Bush tax cuts and a new ‘‘Medicare surtax’’ on investments. Anticipating the rate increase, tax advisers have been actively engaged in planning to avoid or minimize the new surtax.

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Topics:  Capital Gains, Charitable Remainder Trust, Fiscal Cliff, Gift-Tax Exemption, Income Taxes

Published In: Securities Updates, Tax Updates, Wills, Trusts, & Estate Planning Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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