There are now exactly four weeks left in 2012. Judging by the latest news coming out of Washington, D.C., there does not appear to be any significant movement toward taking action to avoid the “fiscal cliff” that will occur exactly four weeks from tomorrow. I addressed what that “fiscal cliff” means for agency owners and others in terms of the increases in tax rates on ordinary income, dividends, and capital gains in a blog I posted back in August. In that post, I advised that those coming tax increases, as well as the new taxes under Obamacare that will take effect on January 1, 2013, should be a big factor for agency owners who were considering whether to sell their agencies this year. (Click here to read the full blog post.) Nothing has changed since that post to alter my advice.
A couple of months later, I had another blog post regarding a recent article in the Insurance Journal about the impact the coming tax increases will have on all taxpayers. It was the author’s conclusion that all taxpayers should be looking for ways to accelerate income into 2012 and defer deductions to 2013. I mentioned one way that could be done by agency owners in my blog post and referred the reader to the complete article for other ways suggested by the author. (Click here to read the full blog post.) Again nothing has changed since that post to alter the author’s advice.
If you have any questions about my earlier blog posts or the issues raised in them, please feel free to contact me.