We’ve all felt that feeling of sticker shock — perhaps when we had our car repaired, our teeth fixed, or our roof repaired.

Unfortunately, I believe that folks who own businesses or individuals who have several different sources of income should prepare themselves for that same feeling as their 2013 tax returns are prepared. There are a few reasons for it:

  1. across the board tax rate increases,
  2. the .9% earned income Medicare tax,
  3. the 3.8% Medicare surtax on Net Investment Income,
  4. phase out of certain deductions, and
  5. expiring tax provisions.

That’s why preparing income tax projections NOW will help you better prepare, plan for and ultimately manage this year’s tax impact. My advice to clients and colleagues is to start immediately so strategies to minimize the tax burden can resonate and be executed between now and year end, removing the last-minute scramble to do something that could have been handled much more effectively in November.

Keep in mind the tax law changes not only affect individuals and businesses, but trusts and estates as well.

Now on your mark, get set, GO!!

Contact a member of your service team to discuss ideas for your year-end tax planning needs.

This communication is for information only, and any action should only be taken after a detailed review of the specific situation and appropriate consultation.

Notwithstanding that these materials do not constitute legal, accounting or other professional advice, as may be required by United States Treasury Regulations and IRS Circular 230, you should be advised that these materials are not intended or written to be used, and cannot be used by you or any other person, for the purpose of avoiding penalties that may be imposed under federal tax laws. No written statement contained in these materials may be used by any person to support the promotion or marketing of or to recommend any federal tax transaction(s) or matter(s) addressed in these materials, and any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor with respect to any such federal tax transaction matter.