Over the past few months, the nation was abuzz with speculation about the approaching “fiscal cliff.” Subsequently, significant time was spent during political negotiations to address a number of expiring tax provisions. For high-income taxpayers, the resulting American Taxpayer Relief Act of 2012 proves to have significant impact, including:
1. Increased tax rates
2. Increased top estate, gift and GST tax rates
3. Permanency of other estate, gift and GST tax provisions
4. Extension/implementation of certain retirement planning options
5. Provisions on other expiring tax and health care provisions
Additionally, many tax issues were not addressed or raised by the Act, including expiration of the payroll tax cut, health care taxes and transfer tax provisions. These may remain of concern to individual taxpayers.
In two recent articles, “We Avoided the Cliff – Now What?” and “Stepping Back from the Cliff – Fiscal Cliff Tax Legislation Enacte” National Financial Partners Corp. (NFP) analyzes the impact of these tax changes and provides insight on the practical ramifications. For those considered to be high-income taxpayers, it’s imperative to know what’s in the Act and the implications for you and your family.
To better understand these new provisions, confer with your tax advisor or contact RCM&D’s Private Client Division. Our team has the knowledge and resources to help you make sense of these changes, take a fresh look at your tax exposures and plan appropriately for the future.