Been letting my busy work schedule interfere with my journal for too long! Recent news gave me a reason to start back.
This is not a political post, just a quick rundown of what’s coming on the tax front – making it important to rethink your investments and other planning. Obama Care is now law. In 2013, that law carries with it sizable tax increases.
Starting in 2013, if you are single and earn over 200k or married and file jointly with over 250k annual income, you will pay a 3.8% Medicare contribution surtax (because you are “rich”) on unearned income(interest, rents, dividends and capital gains). Couple this with the expiration of the Bush tax cuts – taxes on capital gains rise to 23.8%, taxes on unearned income(dividends) rises to 43.4%. Also, in 2013, you will pay a Medicare surtax of .09% on your wages that exceed either the 200k or 250k limits.
Plus, the federal estate tax threshold is dropping from 5 million to 1 million in 2013, so your estate plans should be reviewed.
I suggest that you take a serious look at your investments and plans for the future. If I can assist in anyway, please feel free to call.
Have a Happy 4th of July!