10 questions to consider now for tax changes - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

10 questions to consider now for tax changes

Print
Font Size:
Default font size
Larger font size

William Hertzog

Related Stories

Posted: Tuesday, April 3, 2012 10:06 am

Many significant provisions of the landmark Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) are scheduled to “sunset” (expire) at the end of 2012, which would result in significant tax law changes. If it feels as though we’ve been here before, that’s because we have; the same thing was scheduled to occur at the end of 2010, but Congress voted to extend most of the effected provisions. Will it extend them again? Who knows? That’s why you may want to consider taking steps between now and year-end that could dramatically improve your financial picture — regardless of what Congress does.

Significant changes ahead

December 2011’s last-minute legislation extending the payroll tax cut for only two months instead of the entire year was likely a preview of what taxpayers can expect between now and year-end. Depending on what, if any, tax legislation Congress is able to enact in this contentious environment, we could experience a tax increase for 2013 and later years, as shown in the tables on the right.

Ten questions to discuss with your financial advisor

The expiration of many of EGTRRA’s major provisions could have the biggest effect on taxpayers since the enactment of EGTRRA itself. Fortunately, there’s time to take action so you can be prepared in case the “sunset” actually occurs. To start your discussion, here are 10 questions for you and your financial advisor to address:

1. When should you realize long-term gains?

2. Should you “harvest” capital losses this year?

3. Should you reallocate your portfolio?

• Move from income stocks to growth stocks?

• Purchase tax-exempt bonds?

4. Should you convert your traditional IRA to a Roth IRA?

5. When should you receive income?

• Take traditional IRA and annuity distributions?

• Receive or defer bonus, severance or retirement payments?

• Redeem U.S. Savings Bonds?

6. Are charitable contributions more valuable in 2012 or later years?

7. Should you delay state and local tax payments?

8. When should you take nonqualified 529 plan and Education Savings Account distributions?

9. When should you exercise employer-granted stock options?

10. How should you manage tax-deductible business expenses?

William J. Hertzog, CIMA, is first vice president of investments for Wells Fargo Advisors, LLC, in Ahwatukee. Reach him at (602) 952-5133 or www.TheHertzogGroup.com. Wells Fargo Advisors, LLC, member SIPC, is a registered broker-dealer and a separate non-bank affiliate of Wells Fargo & Company. Note: Investment and insurance products are not FDIC insured, not bank guaranteed and may lose value.

More about

More about

Comments have been disabled.

I can Explain Why Donald Trump Will Lose the Election Using Only Two Words

There is no way – mathematically – that Donald Trump can ever receive enough votes to win the presidency. Scores of articles have been written…

Published: June 27, 2016 - 3:32 am @ http://samuel-warde.com/2016/06/explain-donald-tru…

Three people rescued from stuck roller coaster in Phoenix

Fire crews rescued three people stuck on a roller coaster Sunday afternoon at Castles N’ Coasters in Phoenix. The Desert Storm coaster was stu…

Published: June 26, 2016 - 11:42 pm @ http://ktar.com/story/1142897/castles-in-coasters-…

Drones being used by Phoenix Fire Department

The Phoenix Fire Department has some new sets of eyes in the sky which could help first responders save more lives. Drones are the newest tool…

Published: June 26, 2016 - 11:31 pm @ http://www.fox10phoenix.com/news/arizona-news/1654…

Technology transforms used-vehicle retailing

Will consumers buy used vehicles sight unseen from people they don't know? They will if the deal goes through a third party they trust, and if…

Published: June 26, 2016 - 11:12 pm @ http://www.autonews.com/article/20160627/RETAIL04/…

Phoenix Things to do: 11 events to check out this week around the Valley (June 27

PHOENIX - Another hot weekend in Arizona over! If you're planning ahead, its a holiday weekend. Technically, the Fourth of July is a week away…

Published: June 26, 2016 - 11:00 pm @ http://www.abc15.com/entertainment/events/phoenix-…

New wildfire: Racetrack Fire burning northeast of Tucson

TUCSON, AZ - A new wildfire has ignited in the mountains northeast of Tucson. Officials he fire started near Redington Road in the Catalina mo…

Published: June 26, 2016 - 10:02 pm @ http://www.abc15.com/news/region-central-southern-…

WATCH: Are the Arizona Cardinals on the verge of replacing the Dallas Cowboys as America's Team?

"All or Nothing," an eight-part documentary series that details the Arizona Cardinals' 2015 season both on and off the field, will debut on Am…

Published: June 26, 2016 - 10:00 pm @ http://www.abc15.com/sports/sports-blogs-local/wat…

Pope says Church should ask gay community for forgiveness for past treatment

Driving in Canada Canada - a home away from home Canada, it's time to change! Living with a disability in Indo-Canadian society The empire str…

Published: June 26, 2016 - 9:32 pm @ http://timesofindia.indiatimes.com/world/europe/Po…

The 8 most popular jobs in the marijuana industry

Topics: AlterNet, Arizona, Maine, marijuana, marijuana edibles, Nevada, Pot, Business News, Life News This article originally appeared on Alte…

Published: June 26, 2016 - 9:28 pm @ http://www.salon.com/2016/06/24/the_8_most_popular…

Wearable Tech Catapulting Health and Fitness into the Future

Do you think your smartwatch, with its heart rate monitor, step counter, calorie tracker and message notifications, is impressive? You ain’t s…

Published: June 26, 2016 - 8:58 pm @ http://www.corespirit.com/wearable-technology-cata…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…