It is that time of the year where holiday cheer and giving helps everyone reflect on what is truly important. Family, good friends, and paying Uncle Sam as little tax as possible for 2011. Yes, it is time to make some year end tax decisions to minimize how much you need to pay the governments so you can spend more on your family and those less fortunate.
Last month, our bi-monthly Life’s Financial Navigator was hosted by Alison Dunnebecke, CPA Tax Partner at Hein and Associates, LLP in Denver. Alison has over 27 years of professional experience providing public and private companies with a wide range of tax compliance and tax planning services, including federal and multi-state tax matters. The topic was year-end tax planning for 2011, and I thought I would share some of the highlights. Please consult with your accountant before you make any decisions.
For individual tax update and planning:
1) Consider distributions from “C” corporations while the 15% preferential rate still applies;
2) Consider selling stock at a gain in 2011 or 2012 to take advantage of the 15% rate;
3) If you have a transaction that is an installment sale, file for an extension until 10/15/2012 to have additional time to consider electing out of installment sale treatment if rates have been increased. It may be best to pay taxes up front if you have the cash available; and
4) If you have any input on year-end bonuses, consider whether you should take them in 2011 or 2012. It may be more of an impact in 2012/2013 when the Bush-era tax cuts are set to expire.
For charitable deductions:
1) Consider donating appreciated shares of stock;
2) Deduction is equal to FMV of stock;
3) Capital gain is not recognized by donor;
4) Subject to 30% AGI limitation;
5) If you re-buy stock with cash that you would have donated, you basically are getting a stepped up cost basis in the stock.
These were just a few of the highlights that Alison talked through. If you would like to see the entire presentation, please let me know or call Alison at (303) 298-9600.
We wish you and your family a very happy holiday season!
Darren Nakos, CCIM
Resort Realty Capital
111 Main Street
Frisco, CO 80443-0630
Resort Realty Capital is currently searching for value-add and opportunistic acquisitions in Aspen and 10 other Rocky Mountain markets through our broker partners. If you would like to learn more, please contact us.
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