{"id":870,"date":"2012-11-07T16:03:27","date_gmt":"2012-11-07T16:03:27","guid":{"rendered":"http:\/\/vhfinancialmanagement.com\/?p=870"},"modified":"2012-11-07T16:03:27","modified_gmt":"2012-11-07T16:03:27","slug":"what-2013-may-bring","status":"publish","type":"post","link":"https:\/\/vhfinancialmanagement.com\/2012\/11\/07\/what-2013-may-bring","title":{"rendered":"What 2013 may bring?"},"content":{"rendered":"
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Each year at this time, I begin to focus on year-end strategies to help my clients be the best they can be, financially that is. \u00a0As a fee-only financial advisor, I have been preparing and spending additional time strategizing for wrapping up 2012 and moving into 2013. As we face the fiscal cliff, we as a country have many decisions to make. One of those decisions will be the future level of our personal tax rates.<\/p>\n

I recently read an article in the Wall Street Journal stating that taxes are going up no matter who is president. Interestingly enough, this is the same message I have been telling my clients. \u00a0Taxes are going up\u2026it\u2019s just a matter of how and how much. Will capital gain rates move to 20%? Will AMT get patched again? Will we see an across the board increase in tax rates?<\/p>\n

I certainly don\u2019t state my case to incite fear\u2026..well, maybe a little because fear is a great motivator. \u00a0I simply state it to make sure you understand the importance of tax planning and decision making during the next two months.\u00a0 My year-end tax planning appointments will certainly have more complexities and nuances than in most years.<\/p>\n

What\u2019s Realistic?<\/strong><\/p>\n

While I am not a prognosticator, here are a few items I feel are realistic for 2013:<\/p>\n

Your Two Percent Raise<\/span><\/strong><\/p>\n

In 2011, President Obama signed into law a 2% reduction in the OASDI( Social Security) payroll tax. You can read my thoughts on this in an earlier blog post<\/a>. This reduction remained in place for 2012.\u00a0 Moving ahead, this reduction is more than likely going to expire.\u00a0 So, you can expect to pay 2% more in taxes on income up to $113,700 (the social security benefit base) in 2013.<\/p>\n

PPACA (Patient Protection and Affordable Care Act \u2013 Obama Care) Tax Impact<\/span><\/strong><\/p>\n