Grant Thornton is advising US taxpayers on some possible year-end tax planning strategies, while warning that this is one of the most uncertain quarters in American tax history. They predict that dramatically higher taxes are probably coming no matter who is returned to the White House this week.
Tax planning is never a breeze, but it’s especially complicated this year because of all the uncertainty. Now that the election is over we still do not know how much gridlock will continue, or what will happen with scheduled tax increases and the expiration of dozens of tax cuts.
Grant Thornton's 2012 “Year-end tax guide” will help you prepare now. Here are 10 of thier top tips:
- Leverage above-the-line deductions
- Make up for an estimated tax shortfall with increased withholding
- Bunch itemized deductions to get over AGI floors
- Accelerate income to “zero out” the AMT
- Don’t fear the wash sale rule to accelerate gains
- Consider an 83(b) election on your restricted stock
- Consider converting to an S corporation
- Set salary wisely if you’re a corporate employee/shareholder
- Make payments directly to educational institutions
- Make gifts now
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