Cash Flow Planning for Life - Helping you reach your personal & professional financial goals.

Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

Tax & Investment Plannig

This is the second installment of Tax Planning for Changing Times: 5 Things You Should Know which can also be downloaded as a free eBook.

Tax planning, along with investment planning, has been turned upside down as 2012 comes to an end. What is a taxpayer to do? If your modified adjusted income is below $250,000 (for joint filers) or below $200,000 (for singles), then no changes in your investment planning are needed. You can proceed as you have in the past.

However if your modified adjusted income is above those thresholds, you will need to…

consult with your tax and investment advisor, as several tax saving opportunities exist as 2013 is fast approaching. If you fall into this group, tax rates are expected to increase in 2013, and there will be an additional 3.8% tax on net investment income.

Below are some ideas to discuss with your advisor(s):

  • Speed up real estate sales with a gain expected. Bypass installment sale deferral if that is an option.
  • Make a Roth conversion in 2012 instead of 2013 if that fits into your investment planning. Consider this option each year to stay within the lower tax bracket, at the same time taking advantage of the Roth IRA opportunities; see my eBook on this topic.
  • Tax Planning for Changing TimesSelling winners out of your portfolio in 2012 and purchasing them back (watch wash sale rules) if you believe in stock, can yield a tax savings if the gain is recognized in 2012.
  • Consider changing your investment allocation between qualified and non-qualified accounts to limit the effect of the 3.8% Medicare surtax.

For more information regarding the tax changes this year, download my FREE eBook, (right). To discuss tax planning in more detail, come in and talk to me at Makara & Associates, a Naples accounting firm.

Our firm offers many accounting services: cash flow planning, controllership, tax planning and preparation, individual and corporate tax returns, and more. Feel free to contact me online or call (239) 384-9688 in Naples or (239) 768-5008 in Fort Myers. You can also connect with Markara & Associates on Facebook.

– Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.
LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.

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