Check
out these strategies to bypass capital gains altogether or at least lessen the
bite.
Unless you've been paying close
attention to capital gains and your expected 2013 tax, then you may not realize
a potentially large "bite" until tax season. For those in the know,
however, there is still time to beat the capital gains tax in 2013 and beyond.
For some ideas to consider
before it is too late, take a look at a recent Forbes article titled “How To Beat The Big 2013 Capital Gains Tax
Hike.”
The Great Capital Gains Tax Hike
of 2013 was essentially the double-pronged effect of the eclipse of certain tax
cuts mixed with a brand new surtax. More specifically, the gains tax was
allowed to bounce from 15% to 20%, and Obamacare added to the pain with a new
3.8% surtax to high earners. If you are doing the math, then that equates to a
new rate of 23.8% for many (a near 60% increase from the year then ended).
So how do you beat it?
Here are 11 strategies to
consider, according to Forbes:
- Invest in your primary residence.
- Manage your tax bracket.
- Harvest losses.
- Gifts to family members.
- Gifts to charity.
- Feed retirement accounts.
- Open a 529 college savings account.
- Buy and hold.
- Move to a tax-friendlier state.
- 1030
exchanges. - Charitable
trusts.
Each of these strategies has
merit.
Nevertheless, the key is to
evaluate them (and others) with your professional advisors in the context of
your medium and short-term financial and estate planning goals.
The tax “tail” should never
automatically control the planning “dog.”
For more information and articles on
estate planning and elder law topics, please visit our website
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Reference: Forbes
(September 13, 2013) “How To Beat The Big 2013 Capital Gains Tax
Hike”