wealthwire.com / By David Sterman at Investing Answers / November 12, 2012
Politicians have spent years telling you that they will never raise taxes. What they don’t admit is that your taxes can rise anyway, simply by letting current laws expire. And rise they will. Though the “Bush-era” tax cuts were given a two-year extension at the end of 2010, it’s overwhelmingly likely that many of these decade-long tax breaks will expire at the end of the current quarter. That’s the impending “fiscal cliff” the media is buzzing about. Now that the presidential election is over, it’s time to get to work.
That dawning reality has tax advisors scrambling, suggesting key moves now to protect gains from the tax hikes to come.
Let’s take a closer look at eight key tax breaks and assess the likelihood that they will soon evaporate.