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Tax Planning

Tax Planning.  Taxes must be considered in every economic decision of your life.  If you have read any of the other discussions on this site, you know that tax consequences exist in almost every situation.  Jim Marino we likes to weigh the tax effect in all matters in the determination of action.  While the tax role doesn’t typically control all decisions, it almost certainly will affect that decision.  Consistent with planning preparation, Jim Marino will explain your position and help you to plan for tax opportunities in your decision making process. The difference between “death and taxes” is that we can plan for (or around) taxes.

With the tax law changes of 2013, higher income taxpayers face an increased tax burden compared to previous years. New taxes have been added and must be planned for: surtax on net investment income (NII) and Additional Medicare Tax. The combination of these and other factors makes tax planning all that more crucial.

Some issues impacting your l tax positions:

Medicare Surtax. Effective on January 1, 2013, a 3.8% Medicare surtax is imposed on the lesser of a higher-income individual’s (1) net investment income (NII) or (2) the amount of modified adjusted gross income (AGI) that exceeds $250,000 (married filing jointly.)

Additional HI (Medicare Tax). For tax years beginning in 2013, an additional 0.9% HI (Medicare tax) is imposed on wages and self-employment income of higher-income individuals. ($250,00 for married filing jointly.)

New Maximum Capital Gains Tax Rate. Capital gains rate increases for taxpayers subject to the 39.6% income tax rate.

Unreimbursed Medical Expenses.  The threshold for qualified unreimbursed medical expenses increases to 10%. Taxpayers (or their spouses) who are age 65 or older before the close of the tax year, however, may continue to apply the 7.5% threshold for tax years through 2016.

Don’t wait until December to consider this year’ s tax burden or your long term tax strategy. Set up an appointment today!