The "fiscal cliff" of 2012 relates only to tax aspects meaning many additional topics are still up for debate. Below is a brief explanation of what the American Taxpayer Relief Act does and does not do:
What the Act does:
- Increases tax rates for high-income taxpayers
- Increases top estate, gift, and GST tax rates
- Makes other estate, gift, and GST tax provisions permanent
- Extends / implements certain retirement planning options
- Addresses other expiring tax and health care provisions
What the Act does not do:
- Many tax issues were not discussed and remain of concern to the taxpayer: expiration of the payroll tax cut, health care taxes having significant impact, and transfer tax issues may remain.
Summary of Income Tax Provisions
Where do we go from here? Tax preparation and analysis will be more crucial than ever. For questions and help with tax planning strategy, please contact me.
