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.



Highlighted Recent Recordings:

*Entities & Employee-Benefit Plans
*Current Developments in Tax Law that Affect Traders
*Accounting for Traders
*The Section 1256 club is hard to get into: Futures on foreign exchanges often donít qualify
*Puerto Ricoís tax haven status
*Entities: A key update on trading entities and management companies
* 2013 Tax Filings For Traders & 2014 Tax Planning
*Forex Tax Treatment & Planning
*Trader Tax Law Update: Current Developments
*2014 Tax Planning & Will an Entity Help Lower Your Tax Bill?
*Audits of Performance Records

Trader Tax Center

Tax Newsletter & Calculators

Highlights (see the full archive):

Aug 19: Foreign partners in a U.S. trading partnership can be tax free Read More

Aug 13: IRS warns Section 475 traders Read More

June 20: Tax treatment for Nadex binary options Read More

June 19: IRS softens its stance for some taxpayers with undeclared offshore accounts Read More

June 12: IRA rollover rule changes Read More

June 6: Bitcoin is not reported on 2013 FBARs Read More

June 5: Tax deadlines in June: U.S. residents abroad and FBAR Read More

June 2: Tax treatment for foreign futures Read More

May 21: Bitcoin tax update: Can business traders apply Section 475 elections to bitcoin trades? Read More

May 13: Puerto Ricoís tax haven status is tailor made for investors, traders and investment managers Read More

May 6: Entities: A key update on trading entities and management companies Read More

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

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

Feb 1: Net investment tax details 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 ďassuranceĒ from quality independent CPA firms. Read More

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

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

Aug 18: Common trader tax mistakes Read More

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

GreenTrader blog archive, Forbes blog, Benzinga blog.


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