Oct 102012

There is one speck of good news on the tax horizon.  With the looming fiscal cliff, and an expected increase in estate taxes, the amount excludable for gifts is increasing.

Currently, a gift up to $13,000 is excludable, both to the donor and the donee.  In 2013, that amount is set to rise to $14,000.  These amounts are annual.  Therefore, this amount can be gifted to a single person every year.

 October 10, 2012  Posted by at 2:50 pm 2 Responses »
Oct 022012

Despite the threat of the fiscal cliff causing another recession, economists believe that Congress will act soon to prevent potential economic devastation.  The end of the 2001 tax cuts coupled with the $1 trillion budget cuts that are set to go into effect in the new year could be devastating.  The budget cuts are part of the debt ceiling deal from 2011.  Most likely Congress will act, either in the lame duck session after the November election or in early 2013, to either extend the current tax cuts or enact different ones.  However, until something is passed, and set in stone, small businesses are likely to continue holding back on hiring and investing.  A time of fiscal uncertainty is generally not a good time to be spending.

Economists: Fiscal cliff a serious threat, but unlikely – Oct. 1, 2012.

 October 2, 2012  Posted by at 10:15 am No Responses »