Last year around tax time, the New York Times reported a chilling prediction for 2013. The report calculated that taxes will increase by thousands of dollars for many American families. Well, believe it or not that prediction has come true!
Most Americans are aware that the U.S deficit is growing at an alarming rate, so it is not entirely a surprise that taxes are also on the rise. A key fact to consider is that these new tax increases impact just about everyone, not just the super wealthy. So how do you protect yourself?
The best way to begin defending yourself against these tax hikes is to understand the truth behind the new changes. This way, you can plan and prepare to ensure that you are not stuck with a large tax bill come April 2014. If you are a real estate investor, small business owner or a full time employee, you will want to make sure you plan ahead.
You may need to pay more taxes if you:
- Earn $200k per year individually or $250k as a couple, or
- Own investment properties that have appreciated significantly in value, or
- Own a business or real estate that you eventually plan on selling
If you met any of the criteria above, don’t panic just yet. There is still time to plan and make sure you are protected from the new tax increases. Here are some tips to consider:
Old Strategies Still Work:
For some high income earners this year, capital gains taxes have increased. That’s not the only bad news… on top of the capital gains tax increase there is also a brand new tax for anyone who makes more than $200,000 per year. For real estate investors, this can have a profound impact, especially if you are thinking about selling …read more