Nov 7: Expiring Tax Cuts and Exemptions Redux

As we move through the final quarter of 2012, we at Braun Siler Kruzel PC are getting barraged with the following question from clients: “What do you think Congress will do with the expiring tax cuts?” Our simple answer, we just don’t know. However, it has been our longstanding advice that if a client is able to use all or a portion of their $5.12 million gift tax exemption, and is otherwise comfortable with completing the gifts, they should consider doing so now.

In a similar vein, capital gains and dividend tax rates are also slated to substantially increase at year’s end. Therefore, it has also been our advice that all taxpayers should consider incurring capital gains in 2012. We recommend that all our friends and clients visit with their investment advisers and accountants to determine how they may want to best recognize certain capital gains in 2012, and whether they may also incur certain taxable losses to offset these gains.