I keep on reading that our country is headed toward a “Fiscal Cliff.”
What’s THAT all about?
Bloomberg’s Richard Rubin had an excellent story recently on what Congress will or won’t do regarding the ”fiscal cliff” we’re all facing come next year. That’s when income tax rates, the estate tax, payroll tax, taxes on dividends and capital gains, and other levies are all scheduled to rise, unless Congress acts.
Bottom line: Don’t expect any action from Washington until after the November election. However, if you have money you want to gift to your children or grandchildren tax-free, this is a terrific opportunity to do so because the limits until Dec. 31 are $10 million for a couple.
That’s very likely to go down next year. It’s not a bad idea to revisit some tax planning to see if any income or capital gains should be accelerated into this year.
Here’s a link to the full story: http://www.bloomberg.com/news/2012-06-18/fiscal-cliff-road-paved-by-those-who-took-u-s-to-brink.html