Greetings! Dear Clients, Colleagues and Friends
There comes a point in life when a person has a chance to own their purpose and passion. That time has come for me. I love to educate. That’s why I hold workshops. That’s why when I meet with clients I want them to be clear and realistic about why they are doing certain planning. That’s why when I am explaining concepts and ideas to our team I could go on and on and on.
I feel it’s time. As I continue on my journey of educating families and business owners to change the way they talk about wealth in money, values, beliefs and traditions and how to preserve and protect that wealth for generations what you will receive is Straight Talk.
Let’s begin. Congratulations to President Obama. Now we have to look at what this could mean for people from an economic and tax perspective because that’s what I do and have done for 27 years with an advanced degree in tax law, which means there is no training higher than mine. By the way, I also received certification as a registered investment advisor for managing people’s money so not only do I have tax and legal skills but also understand and have traded and managed people’s money in the stock market. Please note that had Governor Romney won the points I mention below would still take place so this is not about politics, it’s about opportunity.
Straight Talk. Here is what can happen.
If Congress takes no action the Bush Era tax cuts will expire. Congress has no incentive to take action particularly after last night since most republicans held their seats in the House.
What Tax Cuts Expire in 2013?
1. the highest marginal rate for income taxes will go up;
2. the rate on capital gains from sales of stock will go up;
3. Investment income will be taxed at an aditional 3.8%
4. The amount you can protect from estate tax goes from 5 million to 1 million
5. Interest rates are low. That means there are strategies to benefit family and charity.
6. Many people pay a tax just because they make too much. That’s called the alternative minimum tax. And there aren’t many ways to get around it.
7. Obamacare forces employers of 50 or more to pay for health insurance or pay a $2,000 tax per person. On 50 people that’s $100,000. $100,000 goes to the government and is enforced by the IRS. When is the last time you liked the IRS. Based on a wall street journal article employers are reducing people from full time to part time to avoid this. What this will mean for people and their incomes is anybody’s guess.
The good news is that despite all of these potentially negative consequences to our tax and income, the right planning can reduce the bite.
Please contact our office at (760) 931-9923 to discuss how we can help you as we have helped others in this planning.
Join me this coming Sunday November 11 at 7:00 P.M. on KFMB 760 Talk Radio to listen to these topics and more and remember. I love to educate. Straight Talk. If you know of groups who could benefit from a speaker please let us know.
All the Best,
Rich Gaines,
Legacy Legal, Inc.
