Many tax deductions and subsidies are set to expire in 2012 unless Congress steps in to save them. Could any of these raise your tax bill?
Some Bush-era tax cuts, as well as some long in place tax breaks, are expiring at the end of 2012.
Three of the most endangered tax provisions are:
- The capital gains rate at 15% on long term capital gains and qualified dividends
- The business research and development credit of 20%
- The IRA charitable donation expired at the end of 2011, but congress extended it thru 2012. You can make a charitable contribution up to $100,000 from your IRA and not pay tax on the IRA distribution.
For more details you can see this article from CNBC.com [1].
For many of our clients, the expiration of these breaks could increase their taxes significantly. If you have any concerns that these may affect you, please contact your ShindelRock [2] tax professional who can help you make that determination.