Should I Die This Year?

2010 Tax Conundrum

Are you confused about all the chatter regarding 2010 Tax Planning? Do you know how to plan for the likelihood of the tax laws changing?

If you're not, you should be.

For example; if you really love your children, schedule your death on December 31st. That's right, this would be the most emotionally considerate and most efficient for Tax planning purposes for your children. Thanks to the Economic Growth and Tax Relief and Reconciliation Act of 2001, for this one year only you would pay zero estate tax! Which will expire January 1, 2011.

All the chatter about will or won't Congress extend/modify the 2001 Act for Long term, Short term capital gains, AMT tax, etc. is exhausting. In my conversations with numerous CPA's, Economists, Strategists, etc., no two Financial Gurus can agree.

So what is a person to do?

Best course of action is, as always, have a Plan. If you haven't heard from your CPA, be proactive, contact them for their recommendation for Plan A (Congress extends the Tax cuts) and Plan B (if Congress doesn't). This way you will not be blindsided come April 2011.

For me; I will be attending an exciting Tax Forum to learn anything new I may pass along and continue to keep my eye on Congress to see which way the winds will blow.

Happy Tax Planning!!