Tax Hikes Coming

Tax hikes may be coming soon on the investment industry.

Starting Jan. 1, 2011, all tax rates and rules return to pre-Bush 2001 and 2003 Act law. That will be a huge amount of tax hikes and rule changes to digest. President Obama and other Democrats want to make Bush tax cuts permanent on all but the two-highest tax brackets, plus widen the third highest bracket too. That’s great for all income under $200,000 single and $250,000 married.

The Bush tax cuts are front and center on political battle-lines for the upcoming midterm elections. But that is just the starting point. The deficit commission reports in December 2010 and many Democrats and some economists are calling for higher taxes to help balance the out-of-control deficit, which has moved up the ladder to the being the biggest problem we face.

President Obama, Congressiona Democrats and populist forces are calling for tax increases on the following groups related to many traders and investment managers:
-Upper-income, by letting the Bush tax rates expire on the upper two brackets only;
-Investment income, with possible lapsing of the lower qualifying-dividends tax rate on the upper-two brackets too – losing the revised 20 percent rate and returning to the 36 and 39.6 percent ordinary tax rates;
-Investment income, with the new 3.8% Medicare tax effective in 2013 per the health care reform bill;
-Investment managers with the proposed but so far blocked repeal of carried-interest tax breaks;
-Professionals and small-businesses using the S-corp. structure, with the continued – but blocked each time – proposed repeal of self-employment (SE) tax breaks – this hurts investment management businesses collecting fees;
-Futures dealers with President Obama’s 2011 budget proposal to repeal lower 60/40 tax rates on dealers only;
-Big banks with the President’s proposed $90 billion bank “responsibility fee” (or tax related to TARP, even though most already repaid TARP with dividends).

Robert Green has written many blogs on the tax changes.
Click here
to see the Tax Changes section of our blog.
Robert has several Forbes blog versions of these blog articles too.

Robert Green covered Tax Changes often on his podcasts.
Click here to find 2010 and 2009 podcast archives.

Robert writes about tax changes in Green's 2010 Trader Tax Guide too.



Many Webinars in March

Highlighted Recent Recordings:

*Entities & Retirement Plans for Traders
*Trader Tax Law Update: Current Developments
*2013 Tax Reporting & 2014 Planning
*Forex Taxation
*Audits of Performance Records
*Kick-Off to 2013 Tax-Filings for Traders
*ObamaCare taxes are starting to affect traders
*The Tax Court Was Right To Deny Endicott Trader Tax Status
* Investment management: Key updates
*Learn the DOs and DON’Ts of using IRAs and other retirement plans

Trader Tax Center

Tax Newsletter & Calculators

Highlights (see the full archive):

Mar 27: Protect yourself from market losses with a Section 475 MTM election Read More

Mar 25: IRS guidance on bitcoin transactions will chill its use Read More

Mar 24: SEC Large Trader Reporting Rule Read More

Feb. 27: Another trader tax court loss (Assaderaghi) Read More

Feb. 1: Net investment tax details Read More

Jan 14: New IRS guidance on SE tax deductions affects partnership AGI-deduction strategies. Read More

Jan 9: A major tax reform bill in 2014 is unlikely, and “tax extenders” may be history, too. Read More

Jan 7: Kick off to 2013 tax filings for traders. Read More

Dec 4: IRS final regulations for Net Investment Tax help traders. Read More

Dec 3: Bitcoin is a hot commodity, but is it taxed like commodities, assets, or currencies? Read More

Nov 15: Another non-business trader gets busted in tax court trying to cheat the IRS. Read More

Nov 6: Hedge fund investors depend on “assurance” from quality independent CPA firms. Read More

Oct 29: ObamaCare taxes are starting to affect traders. Read More

Sept 15: Not Easy For New Yorkers To Escape Big Apple's Tax Bite. Read More

August 30: The Tax Court Was Right To Deny Endicott Trader Tax Status Read More

August 18: Common trader tax mistakes Read More

July 24: Learn the DOs and DON’Ts of using IRAs and other retirement plans in trading activities and alternative investments Read More

March 31: PFG investors can deduct theft losses on 2012 tax returns with Rev. Proc. 2009-20 safe harbor relief. That’s great news! Read More

March 5: Caution, downloading securities Form 1099-Bs into TurboTax often leads to incorrect tax filings Read More

Sept 5: High-income traders and ObamaCare’s 3.8% Medicare tax Read More

GreenTrader blog archive, Forbes blog, Benzinga blog.


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