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Brittney Saks, PricewaterhouseCoopers partner in the private company services group, on how the fiscal cliff will impact planning for your taxes.
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-- the end of the year but our next guest says do not wait for the lame duck session in November tax preparation time is now joining us now Britney -- Clarinet in the private company services group the price of price Waterhouse Coopers Britney thanks for being with us again look.
You know why there's so much on the table though the Extenders.
Did -- even tactics in general how -- actually play.
This.
An idea of Tracy's this year more election -- out an election year more than any other in recent past actually.
Americans are looking for some clarity and there is so much uncertainty out there.
That the -- main thing people really need to focus on is to pay attention to tax policy developments.
Educate themselves and really get a good understanding of their financial situation their tax situation so they can plan for the changes I had.
But there but that's the thing and we -- talking about really being under the gun you almost have to prepare your tax return twice once presuming -- extended once presuming.
You know everything goes to Helena handbag I think one of the things that people are most worried about though is the Alternative Minimum Tax because right now.
The cuddle up -- and a couple married filing joint.
Is only 45045000.
Dollars and you are right now looking at paying the Alternative Minimum Tax.
Yet the all the Alternative Minimum Tax -- -- AMT is always a -- of a lot of concern and confusion.
For taxpayers and it's essentially a parallel tax system -- and they need to know so much more in order to plan around -- first you need to see if whether or not you may be subject to it.
But truly we do here almost every year about something called the AMT patch.
And that is where the exemption for the AMT is basically tried to be increased to keep in play it to keep place with for inflation.
So we need the first thing people need to do sit -- one are you subjected to it and to how can you plan around.
-- great number of things you can think about they certainly aren't the people that are in it no -- in it and unfortunately it's a lot of -- from new York New Jersey Connecticut because our state.
And local taxes are so high -- disallowed on to the Alternative Minimum Tax.
Playing up under the policies there but what about other things like estate tax and things like that you know.
That's all going up and there's just there's -- out basically three months to prepare for all this.
Well it's true I mean there's -- barring you know congressional or other legislative action.
Tax rates are going up on income tax cut in the estate and -- side and I think people aren't as familiar with the estate and gift side -- -- very often.
In right now every American has five million dollar estate and gift tax exemption.
But that's special to be deep crease down to one million dollars as of January 1.
So it is very very important to think about one how does that change affects you.
And two is they're planning to be done or gift to be done and considered between now and the end of the year to take advantage of the tax rates in the tax laws are currently stand.
Most certainly is the overall estate tax will potentially go up to 55%.
As well.
That's right -- Sachs -- whereas covers this particular time to be with us and I tell you I think everyone should write to their congressional leaders and in complain about this because there's actually no -- -- plan.
How can you -- they have to prepare to yeah basically after the parents -- different scenarios worst case.
And everything's -- it there -- ago.
This -- Washington.
