informationliberation
The news you're not supposed to know...




Austrian Economics: Understand Economics, Understand the World
The Century of the Self: The Untold History of Controlling the Masses Through the Manipulation of Unconscious Desires
The Disappearing Male: From Virility to Sterility

The Obama Deception: The Mask Comes Off
Operation Gladio: The Hidden History of U.S. Sponsored False Flag Terrorism in EuropeThe New American Century: The Untold History of The Project for the New American Century
(more)
Article posted Oct 22 2012, 4:29 AM Category: Economy Source: Bloomberg Print

Wealthy Advised to Sell for Gains Before Unfriendly 2013

By Margaret Collins and Richard Rubin

Run... Run away and never look back! Sell.

That's the message from some financial advisers, who are telling wealthy clients that the remainder of 2012 amounts to a last-chance sale on federal tax rates. Taxes are set to rise in January in the U.S., pushing the top rate on dividends to 43.4 percent from 15 percent and the top rate on capital gains to 23.8 percent from 15 percent.

Even if Congress averts the so-called fiscal cliff of tax increases on investments, income and estates, pressure to reduce budget deficits will mean higher taxes eventually, said Ron Florance of Wells Fargo & Co. (WFC) The answer is to take advantage of historically low rates and move taxable income and investment gains into this year, said Florance, managing director of investment strategy at the company's private bank.

"It's the opposite of what people normally do," said Florance, whose clients usually have at least $1 million in investable assets. "You're paying taxes today in anticipation of higher rates in the future."

Advisers at companies including Wells Fargo, Bank of America Corp., Bank of New York Mellon Corp., JPMorgan Chase & Co. (JPM), Northern Trust Corp. (NTRS) and U.S. Bancorp (USB) are discussing with their wealthy clients such strategies as selling appreciated securities, relocating assets to tax-deferred retirement accounts, converting IRAs, exercising stock options and making large gifts to heirs this year.

Tax Increases

Tax cuts first enacted during George W. Bush's presidency and extended in 2010 are set to expire Dec. 31. Unless Congress acts, the tax increases along with automatic federal spending cuts will combine to form the so-called fiscal cliff. Taxes on the top 1 percent of U.S. households would increase by an average $120,537, according to a study by the nonpartisan Tax Policy Center.

Federal taxes on ordinary income will rise to as much as 39.6 percent from 35 percent. Long-term capital gains rates will increase to a maximum 20 percent from 15 percent, plus an additional 3.8 percent for high-income earners as a result of the 2010 health-care law.

The opportunity for individuals to transfer up to $5.12 million --- or $10.24 million for couples -- free of estate taxes and gift taxes also is set to expire at the end of the year and drop to $1 million. Legislation enacted in 2010 raised the lifetime estate-and-gift-tax exclusion for 2011 and 2012.

With about 10 weeks left in the year, taxpayers waiting for a decision from Congress before making investment moves may run out of time. Lawmakers won't address tax and spending issues until they return to Capitol Hill after the Nov. 6 election.

Read More





Latest Economy
- Atlas Shrugs
- The Euro Isn't Dead
- Warner Music's Response To Evidence Of Happy Birthday In The Public Domain: Who Really Knows Anything, Really?
- Video: Florida Man Finds $1 Million In Gold From Shipwrecked Spanish Fleet
- Liberals Sign Petition to Impose 10% "Male Privilege Tax"
- Jim Grant On Gold's Liquidation Sale: A "Vexing But Wonderful Opportunity"
- Currencies Depend on Faith, Gold Doesn't
- How Socialism Destroyed Puerto Rico, and How Capitalism Can Save It









No Comments Posted Add Comment


Add Comment
Name
Comment

* No HTML


Verification *
Please Enter the Verification Code Seen Below
 


PLEASE NOTE
Please see our About Page, our Disclaimer, and our Comments Policy.


FAIR USE NOTICE
This site contains copyrighted material the use of which in some cases has not been specifically authorized by the copyright owner. Such material is made available for the purposes of news reporting, education, research, comment, and criticism, which constitutes a 'fair use' of such copyrighted material in accordance with Title 17 U.S.C. Section 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. It is our policy to respond to notices of alleged infringement that comply with the DMCA and other applicable intellectual property laws. It is our policy to remove material from public view that we believe in good faith to be copyrighted material that has been illegally copied and distributed by any of our members or users.

About Us - Disclaimer - Privacy Policy



Advanced Search
Username:

Password:

Remember Me
Forgot Password?
Register

In Under a Minute, this Cop Shows Exactly Why People are Losing Faith in Police - 08/02Criminal Profiling Agency Says Officer Tensing Is The "Real" Victim, Not The Man He Shot In The Head - 07/31Witnesses: Officer Killed Dog, Laughed, Lied In Reports, Charged Owner - 08/02Police Pose As Construction Crew To Extort Texting Drivers - 07/31New Jersey Cop Slams, Nearly Kills Female Senior Citizen - 08/02Atlas Shrugs - 08/02Feds Hand Out Funds To Be Used For 'Traffic Safety;' Local Agencies Buy License Plate Readers Instead - 07/31Afghan War Is Not Over, Says Judge, So Indefinite Detention Can Continue - 08/02

Man Follows Speeding Cop, Finds Out He Was Speeding To Buy PeanutsMission Creeps: Homeland Security Agents Confiscate Women's Panties For 'Copyright Infringement'Cop Shoots Couple's Dog, Threatens Jail For Trying To Save Dog's LifeSWAT Team Shoots Teen Girl & Her Dog During Pot Raid On Wrong HomeDurham, NC Cop Testifies Faking 911 Calls To Enter Homes Is "Official Policy"Indiana Sheriff Says US A "War Zone" To Justify New MRAP Military VehicleTampa Cops Surveil Pot Dealer, Catch Him Selling Pot, Raid His Home & Kill Him"You Just Shot An Unarmed Man!": Witness Says Police Shot His Friend With His Hands Up
(more)

 
Top