Are You Aware of Coming Tax Increases?
May 31, 2012 By Esther Wang - The Elderly and Disability Law Firm
There are some tax increases on the way at the end of this year and a lot of people may not be aware of them. Given the implications of these pending tax hikes cut it is absolutely necessary to sit down and discuss your situation with a licensed and experienced San Bernardino estate planning lawyer because there is a lot of money in the balance.
To explain, the current tax parameters are in place due to the implementation of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. This tax relief measure is going to expire at the end of this year, and when it does taxes will go up.
The tax that must be paid on long-term capital gains is set to rise from 15% (for people in a 25% tax bracket or above) to a minimum of 20%. The tax on dividends is scheduled to go up from 15% to match your ordinary income tax rate.
In addition, the maximum rate of the estate tax is scheduled to rise from 35% to 55% while the exclusion is reduced from $5.12 million all the way down to just $1 million.
This is a lot to digest, and action may be required to take advantage of the limited window of tax relief that remains during the rest of this year. The wise course of action is to sit down and discuss your unique financial situation with a licensed, experienced and savvy San Bernardino estate planning lawyer sooner rather than later.
ABOUT THE AUTHOR: Esther Wang
Experienced estate planning attorneys Redlands CA of the Elder and Disability Law Firm offers estate planning and business planning resources to residents of Redlands CA.
Copyright Esther Wang - The Elderly and Disability Law Firm
More information about Esther Wang - The Elderly and Disability Law Firm
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
The tax that must be paid on long-term capital gains is set to rise from 15% (for people in a 25% tax bracket or above) to a minimum of 20%. The tax on dividends is scheduled to go up from 15% to match your ordinary income tax rate.
In addition, the maximum rate of the estate tax is scheduled to rise from 35% to 55% while the exclusion is reduced from $5.12 million all the way down to just $1 million.
This is a lot to digest, and action may be required to take advantage of the limited window of tax relief that remains during the rest of this year. The wise course of action is to sit down and discuss your unique financial situation with a licensed, experienced and savvy San Bernardino estate planning lawyer sooner rather than later.
ABOUT THE AUTHOR: Esther Wang
Experienced estate planning attorneys Redlands CA of the Elder and Disability Law Firm offers estate planning and business planning resources to residents of Redlands CA.
Copyright Esther Wang - The Elderly and Disability Law Firm
More information about Esther Wang - The Elderly and Disability Law Firm
View all articles published by Esther Wang - The Elderly and Disability Law Firm
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
