Dec 11, 2012 | Uncategorized

Tax Planning Considerations 2012

Make the right choices preparing your 2012 tax return.  A variety of changes loom on the horizon.

  • The Section 179 Deduction will fall to $25,000 from $139,000 unless Congress acts
  • There will be a new Medicare tax of 3.8% on all unearned income
  • There is now a Medicare Surtax of 9% for the self-employed as well as high income earners, those with income over $200k and $250k
  • There is still a possibility the 36% and 39.6% tax brackets will return next year
  • The Capital Gains rate for high income earners may rise to 20 as well as a 28% rate cap for itemized deductions
  • The disappearance of Bonus Depreciation
  • The Transfer Tax exemption falls from it’s current $5.12M/$10.24M to only $1M/$2M
  • A rise to 10% from 7.5% for the Medical Deduction threshold

 

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