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PwC Partner Brittney Saks on how taxpayers can prepare for potential tax hikes in 2013.
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President Obama reiterated his calls for congress to extend the lower and middle income tax cuts.
-- the house Republican plan extending tax cuts for all is upside down economics.
-- both sides can agree -- your taxes are going up so how can you prepare joining us now Britney Sachs partner in the -- company services group at price Waterhouse Coopers or PWC.
Britney you know the proudest this uncertainty closes.
Paralysis and we do nothing.
Well it's true Tracy I mean taxes aren't being topic of the day as you mentioned -- spoke.
But house and senate come bills have been passed we're talking about expiring provisions and -- -- -- congress does not act then taxes are gonna go up for everybody.
But the the but that's why the time to plan is actually right now the worst thing as you mention is.
Having people be paralyzed and and doing nothing it's missing an opportunity -- opportunity is now to plan so pretty do we plan.
For increases and then be pleasantly surprised that they don't go up is that what she should be doing.
It you know you got a plan for every contingency at this point -- -- -- we are working with our clients to think through.
What's going on in on congress what are the different bills and really think how does that apply to you personally.
-- -- don't eat and I would encourage Americans to to really take the opportunity to.
Basically look at your overall financial situation look at your income look at your deductions over the next couple years and think how these different.
Provisions might -- in jail under the assumption that -- Our tax rates are going to go up.
Similar things that you suggest doing are accelerating your income that means like if you're getting bonuses and things like that try to get him in 2012.
Pay the tax at the current rates.
We and it just makes sense if you think that the rates are going up what -- to -- -- it's in your control can you accelerate income into your real -- The lower tax revenue than -- in a future where the taxes higher -- the reverse is true on deductions as well and wouldn't you rather have a deduction -- -- where the if the tax rate higher you're actually getting a greater benefit right sufficient charitable contributions off you know one of the things that people -- the most about though our capital gains and dividends if that goes up.
Do you recommend that people really sit down look at their portfolios and if he got -- -- some gains media do it this year.
Well I think that's exactly right I mean to be -- taxes are never the only consideration when you're thinking about your portfolio and your overall financial situation.
But you cannot discount the fact that especially in -- rising tax rate environment they're very significant right -- work with -- advisors look at your portfolio and see if it does make sense to trigger some gains -- -- -- the tax rates are lower and of course the Alternative Minimum Tax rears its ugly -- on so many tax returns he -- -- with the uncertainty no one knows what to -- -- Sachs we have to have you back -- we get more clarity.
And what congress decides to do.
Thank you Tracy and loves him Britney sax at -- -- thank you very much.
