PHOENIX — Some experts are calling the fiscal cliff, which is less than a month away, “Taxmageddon.”
If Congress and President Obama fail to reach a solution on the budget by the end of the month, tax hikes and big budget cuts automatically kick in for the wealthy.
For example right a gift of up to $5 million dollars can be given without paying a gift tax. That will change if the country goes off the fiscal cliff.
“You could give away $5 million right now but Jan. 1 you’ll be paying tax on $4 million,” said Jason Miller with BMO Private Bank in Scottsdale.
Miller said those would could be affected may want to consider accelerating income into this year.
“As opposed to deferring it so if you have capital gains in stocks or mutual funds it might make sense to realize them this year.
Attorney Harvey Frutkin said there’s no need to panic for taxpayers.
“There will be time to accelerate to deductions that otherwise would be taken next year or postpone income that would be taken this year. I think we’ll have those opportunities,” he said.
Frutkin said most of the potential tax changes will affect the wealthy and he believes a solution will be found before America goes off the so-called fiscal cliff.
The non-partisan Tax Policy Center estimates middle-class families would pay about $2,000 a year more in taxes, or about 4 percent. The top 1 percent of taxpayers would see their tax bills go up around 7 percent, or about $120,000.
- Stretches and exercises for carpal tunnel syndrome
- The best Major League ballparks have their own personality
- Comparing the best regular seasons: The '96 Bulls and '16 Warriors
- 3 Arizona road trips and the vehicles to get you there
- Colon cancer is preventable. Check these signs and symptoms to stay healthy.
- 6 of the biggest skin cancer myths
- Affordable small home makeover ideas
- Locals helping locals: 6 success stories you need to know about
- Sunscreen facts that could save your life
- 6 energy saving hacks for your home
- 5 tips for choosing a company to end your timeshare
- Overlooked water tips to save you money
- 5 of the most adored gentlemen in professional sports today
- The real danger of sitting at your desk
- Most surprising NBA playoff performances of the last 40 years
- 11 classic baseball movies you must see again
- Finally getting rid of fat: 3 methods that actually work
- 4 reasons cancer survivors should focus on food
- 5 spring cleaning spots everyone forgets
- 5 reasons to look forward to watching the D-backs this season
- Common virus attributed to spike in head and neck cancers
- 5 signs it’s time to end your timeshare ownership
- 3 most overlooked ways to keep your home healthy
- 6 ways the air in your home could be making you sick
- CrossFit dangers: 5 common injuries and how to deal with them
- Today's radiation treatments offer better success, fewer side effects
- Tips to make watching TV on the patio even better
- What really happens when you donate to a community college?
- Sun and skin cancer: Separating fact from fiction
- 5 critical lifestyle changes for a healthy colon