Big Tax Changes Coming in 2011. Ignorance Will Not Be Bliss

Any inferences to politics in this blog are purely accidental. 2009 and 2010 have been filled with a lot of heat and light around various pieces of legislation. Regardless of your political views, we must all understand that as a nation we are facing a great deal of change in both the way and the amounts in which we will be taxed starting in 2011. It is likely that the so-called �Bush Tax Cuts� will expire. Among other impacts of that expiration will be the reinstatement of estate taxes as well as changes in brackets and the capital gains tax. Inside the Health Care Bill and Cap and Trade, both huge pieces of legislation, are other tax increases. A broadening of the Alternative Minimum Tax (AMT) is also on the board. (A planning report on the AMT can be found here.) What everyone must do is consult his or her tax and financial advisors NOW and start planning for how all these changes will affect you. Maybe there will be no effect, but at least you will know.

This is a time to seek valuable expert advice and act on it. Speaking of experts, you can find additional details online from Gross Mendelsohn andNaden/Lean, two regional accounting firms. These sites can provide more detail about what is coming down the road. They also have people who can help.

For more in-depth information about how the tax law changes in 2011 will affect you, go here for an itemization of the the laws that are set to expire and read more here for a summary of the various changes.