Vail Daily letter: The fiscal cliff and you
December 4, 2012
Forget about their fiscal cliff and worry about your own! Of the over three dozen federal tax laws that are set to expire at the end of 2012, many of these apply to you.
Maximum income tax rate : 2012, 35 percent; 2013, 39.6 percent.
Maximum capital gains rate: 2012, percent; 2013, 20 percent.
Maximum estate tax rate: 2012, 35 percent; 2013, 55 percent.
Estate tax exemption: 2012, $5,120,000; 2013, $1,000,000.
Maximum qualified dividends rate: 2012, 15 percent; 2013, 39.6 percent.
Maximum gift tax rate: 2012, 35 percent; 2013, 55 percent.
If you still feel like paying more taxes, the phase-out of itemized deductions (which was repealed in 2010), will be back in 2013. The 0.9 percent additional medicare payroll tax on wage income over $250,000 ($200,000 on individuals) will be added. Business owners who want to pay more taxes will be able to since you will not be allowed to take additional first-year depreciation on certain business assets placed in service after Dec. 31, 2012. And last but not least, if you want to sell your home in 2013, you may qualify for the new Medicare surtax on investment income.
I am afraid our lawmakers will get a pass until 2014 because no one will really understand or care until you the taxpayer files your 2013 tax return.