“Taxmagedden” is looming and if Congress fails to reach an agreement by December 31, 2012, current favorable tax laws will expire including:
• The $5.120 million gift and estate tax exemption will drop to $1 million.
• Estate tax rates will increase from 35.00% to 55.00%
• Capital gains tax rate will increase to 20.00%
• Dividends will be taxed as ordinary income
There may be several strategies to consider in order to take advantage of current tax laws and preserve your estate and/or your business from the looming deadlines.