When It Pays Not To Wait: A tax increase next year gives you a great opportunity this year.
Have you looked at how the new tax rates will impact you beginning in 2012? With a higher capital gains rate, it will be more expensive than ever to sell your appreciated assets starting next year. However, there are things you can do now to save on taxes and have peace of mind.
Carefully consider any stock (or other asset) you have that is worth more now than what you paid for it. No matter what the market is doing, remember your gain is not measured by what the stock was once worth, but what you paid when you purchased it.
Even if your asset has lost value in recent months or years, you may still have significant gain depending on its current value
compared to what you paid for it. Now is the time to deal with these assets. If you delay, higher taxes could result.
For even greater tax advantages, talk with your tax advisor or with us about creating a charitable remainder trust. A charitable remainder trust, or unitrust, avoids all gain at funding and provides significant other benefits for you.