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Accelerate Capital Gains to Get Tax Advantage This Year

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  • Description

    FBN's Tracy Byrnes gives tips for preparing for the fiscal cliff

  • Duration 4:19
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After all that's not a very good way to make your financial -- -- we got something more specific for the fiscal cliff survival -- we're joined.

For part two part series by tax -- and markets now anchor at 2 o'clock eastern.

Tracy -- -- best advice are -- these are things you do now.

There's very few things we know right my mother always says don't -- today worrying about tomorrow what we do know though is that that three point 8% on investment income is coming.

Some planned for that that is at least -- at a minimum what you should do so we're talking about -- capital gains here right.

Now I don't think anyone should make an investment decision based on taxes by any stretch but if you have I think you might need something within the next year to consider selling before the end of the year.

And it's very contrary to what we've done in the past you typically want to pull earlier losses into the end of the year to offset your tax bill right.

Don't do that.

If you can wait -- -- sound January -- push those losses off as best you can because you probably will see a higher capital gains rate next year are you worried about.

Or -- case because now let me looking you do you can only put in so much tax free if -- make a certain amount of money.

With them going after those that make over 20250.

Giving the 401K is going to be a messed with a few well know what.

I cannot imagine how that could be politically correct thing to do quite frankly.

Much like the AMT I would tell you right now 33 million people are affected by the Alternative Minimum Tax if they do not put a -- in by the end of the year.

If they don't let thaksin I am -- -- -- hitting in my citizenship and moving it because monkeys officially run the joint they will fix this it's a -- me your 401K you're at Alternative Minimum Tax I I really believe.

They're not gonna -- these things as much as say.

Maybe -- charitable deductions might be affected maybe that will be limited so.

To be charitably inclined to -- the into the year give out as much you can -- with your mortgage interest deduction.

May try to make that extra mortgage payment before the end of the -- -- you can take that interest deduction now in case they tamper with it.

Next in case they -- all right Derek what I.

-- now Apple Stock had some of the very biggest gains in the past five years and Apple's stock has been down twice as much as the overall market has some people are selling now to pay a lower capital gains tax rate -- -- people are selling now a lot of people are.

Very very nervous but I just feel like you shouldn't make a long term decision.

Based on a short term mess we are they're going to come to some agreement right it's not gonna go through the roof unless.

Somebody doesn't step up and say hey the American people are gonna that you mentioned something about the mortgage interest deduction and that is that -- He usually was a sacred cow -- -- never touched on is a lot of conversation that that is going to be.

There is gonna be cut do you think that's gonna hurt the housing market which -- been recovering you know I've seen studies on both sides say yes and no I think that a lot of people.

Look for that deduction when they go to buy a house of the same time now someone like myself didn't buy one for the deduction I've bought -- it.

No that I had to say please put my kids so.

I think I think we don't need that to be tampered with right now but I would not be surprised that there were limitations put on that deduction.

As part of this whole -- are you think it.

Definite taxes tax rates are going up on people who earn over 250000 per household I would I would really I that I made a few phone calls on this I'd really like to see it at least.

Half million dollars meaning higher -- to fifty and you know what people like us really.

As a citizen as opposed to -- we are the congressional leaders from -- area marching the White House saying 250000 dollars in this area.

Kitchen nowhere back even Buffett who wants to tax everybody -- and 500 -- and that's I think what a lot of attacks people are thinking that as well off and on debt fears unfortunately as we watched over and over with.

You're right -- -- whether it's LA or San Francisco or New York we're dealing with middle class Americans let me -- -- up at the estate tax out.

You know it's almost like if you're gonna died due before December -- -- having a discussion again it's morbid but it's true and in.

But again all that means is everyone should get on the phone -- -- estate -- do something.

-- out as much as you -- I mean be proactive.

Know what you cannot do it down likes to say that I wanna leave something to my heirs do it for the end of the year -- ugly if you if any plans to give money away next year -- -- -- -- you don't know what's gonna happen.

Well there's certain things you can control do that now the -- but not so proactive -- -- in our life early that that would be wrong I would -- at that okay now.

Well but what.

I take you very -- -- and I look.

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