The country’s taxpayers are facing more uncertainty than usual as they approach the 2014 tax season. They may feel trapped in limbo while Congress is preoccupied with the November midterm election and its results – leaving legislation that could alter the current tax picture up in the air.
Since the DC lawmakers are unlikely to pass, extend or modify tax provisions anytime soon, tax planning may seem pointless. But, actually, careful planning is wise regardless of the situation and even more important during uncertain times.
Tax categories that are covered include:
- Tax rates, exemptions and phaseouts
- Alternative minimum tax trap
- Long-term capital gains
- Contributing to a retirement plan
- Estate and gift planning strategies
- Withholding and estimated tax payments
- Tax strategies for business owners
A current reassessment of your situation could allow you to respond more quickly once changes are enacted. After all, resolving the election questions may trigger a flurry of congressional activity as the representatives recognize the need to deal with pending changes before the end of the year.
Even though the federal tax laws haven’t changed much from last year, your circumstances may have changed. And some rules that expired on Dec. 31, 2013, may yet be restored, even retroactively, to Jan. 1, 2014. It could be the perfect time for you to get a fresh perspective.
To make sure you’re taking all the appropriate steps to minimize your individual and business taxes, you should prepare to anticipate possible changes with the informed guidance of your tax professional.
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