There are still many tax and financial planning opportunities available for 2013 and even more for 2014. Many of these you may not have considered or even knew about. There are all of the common suggestions such as to defer income to a later year and accelerate deductions to 2013. These can have merit but tax rates keep going up so the taxpayer really has to consider if these traditional suggestions are the best…
- Ordinary federal and state tax rates that include social security taxes, Medicare, Obamacare and itemized deduction phase-outs often result in total tax rates as high as 63% in States such as CA/HI/NY/IL.
- Capital gains rates are high too but can be limited to about 1/2 of the ordinary tax rates.