Although the current political environment makes tax planning difficult at best, at least we know what will happen if nothing is done: Long-term capital gains rates will increase; regular tax brackets will change and go up; payroll and self-employment taxes will go up; higher income families will be subject to an itemized deduction and exemption phase-out. The biggest issue is probably Alternative Minimum Tax. If there is no fix this year, approximately 30 million taxpayers will be subject to AMT.
The typical advice of deferring income to future years may not necessarily be an appropriate strategy this year. These are issues that affect both the individual taxpayer and business owner alike. I recommend you meet with your tax advisor before the end of the year to determine an appropriate strategy based on your particular situation.
David Smith CPA
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Smith Patrick CPA
Smith Patrick CPAs is a growing firm based in St. Louis, MO. From accounting to wealth management, our team takes a consultative approach. We provide excellent, personal service to small businesses and financially active individuals. It’s our goal to help you to make the best decisions, saving you money and headaches.
About Smith Patrick CPAs
Smith Patrick CPAs is a boutique, St. Louis-based, CPA firm dedicated to providing personal guidance on taxes, investment advice and financial service to forward-thinking businesses and financially active individuals. For over 30 years, our firm has focused on providing excellent service to business owners and high-net worth families across the country. Investment Advisory Services are offered through Wealth Management, LLC, a Registered Investment Advisor.
