As your income goes up, your taxes go up. But they may go up even more than you realize over the next few years as tax laws go into play.
Higher income soon will mean:
- Phased out itemized deductions,
- Phased out or lost exemptions,
- Higher tax rates,
- Medicare surtax for payroll, and
- Medicare surtax for passive income.
Here are three things you need to do to get ready right now:
- Review your system for projecting income and expenses for your business, investments and other sources of income. Can you provide a fairly accurate statement of income and expenses for your CPA by September of this year? That will give you a window of opportunity to make changes.
- Have you and your CPA discussed what the new Health Care Bill changes will mean to you and your investments? In the right circumstances, investing through your pension plan and moving business income to a C Corporation could save you thousands of taxes.
- Take a hard look at your current tax and asset protection team. Are you ready to take on the biggest tax challenge your business will ever have or is it time to add some support?
Tax changes are coming your way. Now is the time to look at your systems.