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How to plan for higher taxes

Thursday, October 14, 2010 - 02:32

Oct 14 - With the Bush tax cuts set to expire you may be wondering what your tax bill is going to look like in 2011. Chances are it will be higher.

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There is one thing certain about taxes these days. Many Americans don't know what they're tax deals will look like in 2011. President Bush's tax cuts are set to expire December 31. There's talk the democratic White House may extend those cuts the reality is no one knows not even Michael Collins in independent financial adviser in New York City. Cohen expects at least some of the tax cuts will expire when the clock strikes midnight at year's end. I won't be you know higher tax bracket I will no dividend producing. Stocks that I have will be taxed you know go up from. If you 15% to 39 in two ordinary income. Capital gains will go up and you -- my income will diminish. It's just it's just that simple one of the tax expirations that getting a lot of attention is the tax on estates with over one million dollars. In 2010 there is no estate tax but it may reappear in 2011. At a rate is high is 55%. Asher Rubin seen in asset protection and tax strategy attorney -- Rubin -- in Manhattan offer some suggestions to help lower estate taxes. I would consider putting assets into family limited partnerships and taking advantage of the opportunity for discounted -- Two two one's family members that's an excellent way to accomplish estate tax savings you may also wanna consider a dynasty trust various states have in the last few years. Implemented legislation where you can gift we can put assets and a dynasty trust. Pass them on not just your kids and grandkids but various generations into the future. There -- also some easy steps taxpayers can take to protect themselves from a tax hike in 2011. Lauren young wealth management editor at Reuters. If you have gains on the table and you can take them in 2010. Do it because you're going to be paying a lower tax rate for those long term capital gains. The other thing to do is to stockpile losses if you have some losses they help offset gains. Saved them for next year because they're gonna help lower your tax now consider looking at a rock this is no tax. Plan for you to save for retirement and the planning part is that you actually play your taxes upfront. As our Michael Cohen he's staying liquid in making no rash decisions until attacks uncertainty. Is concrete Jill Bennett Reuters. It's.

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How to plan for higher taxes

Thursday, October 14, 2010 - 02:32