3 September 2010
5 Returns to the tax now
Posted by selfprofit under: Business; Career; Education; Real Estate; home .
It may seem a bit strange to be talking about income taxes in September. There are, however, good reasons to think about taxes well before April 15. For starters, there are some big changes in the tax code that go into effect in 2011 infertility problems and nutrition. Depending on your income tax bracket and investments, some simple planning now could save you a bundle later.
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And taking steps now to organize your tax files can avoid headaches and aggravation at tax time. So we've put together 5 tax moves to make now to take advantage of changing tax laws and to better prepare for tax season.
1. Evaluate Capital Gains: The current long-term capital gains tax rate, with some exceptions, is either 0 percent or 15 percent depending on what ordinary income tax rate you fall into. But in 2011, these rates jump to 10 percent and 20 percent. That means if you have some investments that have done well, you may want to consider selling them in 2010 to take advantage of the lower tax rates. If you currently fall within the 0 percent long-term capital gains rate, the decision may prove to be an easy one. But even for those that fall into the 15 percent bracket, saving 5 percent over next year's higher rate is significant. Of course, the tax consequences of an investment are just one factor to consider when deciding whether to sell.
2. Make Money Now: As you've probably heard, some of the higher income tax brackets will get even higher next year. The top two rates for the 2010 federal income tax brackets are 33 percent and 35 percent, which will move to 36 percent and 39.6 percent in 2011. The effect these changes will have on lower tax brackets depends on what Congress does this year, but the lower tax brackets are set to increase as well. If you fall into a rising tax bracket, it may be in your best interest to accelerate income into 2010 if at all possible. Thi
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