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Putting Your Year-End Tax Plan Into Action

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    Wealth Health Managing Director Rich Coppa offers tips to lower your tax bill.

  • Duration 3:18
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But whether congress and the president can -- of -- -- deal before January 1 totally remains on the air.

One thing -- -- -- in there are steps you can take right now at a lower your taxes for next year.

Here it is tips rich got a managing director of wealth health financial planning.

But taking that's an important point for people understand that put the fiscal -- -- each year in tax plan.

Absolutely I mean everyone's talking about the fiscal cliff it's important talk about but there's the usual things that.

You should still be doing every year you know I think tax heart loss harvesting is really important.

You know with the rates possibly going up likely going up with capital gains -- think they're even more valuable even if you don't use in this year.

Caramel -- that much more valuable have a -- personal balance sheet.

I'm -- a lot of people are thinking well maybe I should take may gains this year save my losses -- just sort of contradictory to what we've done in the past.

It is you know I've talked a lot about that declines in the you know -- went from about this reset in the basis -- -- -- -- now right buying back get this you know higher basis but.

You know nine times out of ten you don't want to accelerate taxes and pay Uncle Sam early unless you know you're gonna sell those positions anyway soon into 2013.

So.

My view is if you have a concentrated position -- a lot of risk you wanna get out.

If you're gonna sell -- business and at some point over the next six to twelve months sure accelerator but if you're in a long term.

You know investment there's no reason I don't think to accelerate the -- just to pimples -- Just because it's so uncertain how it's gonna end up if you were in a position right it's a short term gain.

Would you buy -- back in -- retirement account like an IRA or Roth.

Possibly mean I can't see why you wouldn't -- you have the cash and -- wanna buy it back there.

But around again I think it depends on you know if there's going to be gain potential gain rates are still lower than.

Ordinary rate so maybe it's better to have that outside -- one of your -- was to revisit your withholding which is your debt you know the form you fill out when you don't you get value for our when you.

Get a job and -- really important mostly technical up.

Well yeah I mean and look at I think the thing is that the fiscal cliff is I think driving people that get a little crazy but.

Reality is I think argument really is over the highest bracket so for most people I mean it really shouldn't matter that much however.

We do have the payroll tax increase in the likely by 2% right for those you know making over 200000 single or 250 joint.

You're gonna have the extra point 9%.

And then possibly your state income taxes -- change look what happened in California recently prop thirty increase.

Income taxes so it's always a good year and planning -- look at your withholding but in this year in particular with all these moving parts.

-- -- do if you think you're gonna mean AMT and they have yet passed packed yeah naive just presume that based on history.

You know it's one of those things what will could you do I know it's one of those things have to wait and see and they talked about earlier in the show tonight but.

That is the one thing that I think is like the silent killer here because so many people aren't focused on that.

And that could hit the middle class a lot to a lot greater extent than what people are talking real -- if you gave to for small businesses as awful as it sounds hire better.

Absolutely hire veteran there's a tax credit that up to 9600 dollars per worker.

And of course it depends on the you know how long -- been unemployed and what the wage is gonna be but 9600 dollars -- hire veteran.

Prior to the end -- if you look and hire people the next couple months accelerate that do it now hire veteran put.

Some of the work get a great tax credit.

It it and then because it's happened thank -- environment --

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