Higher Tax Rates And What You Can Do
"Its not how much you can make, but how much you can keep"
Since 2013 capital gains have increased significantly for high earners. Howerver, even moderate income investors face a new Medicare 3.8% surtax on net investment income like capital gains.
Under the "American Taxpayer Relief Act of 2012", For single filers with incomes over $400,000, Capital gains taxes have moved from 15% to 20%. Overall high income taxpayers will pay 23.8% --- a staggering 58% increase from 2012!
Despite these new tax increases, Alliance professionals can still help you structure a Section 1031 exchange that will defer all of these taxes. Smart investors can sell and use the 1031 provisions to defer all these taxes and reinvest in better performing investments.
A 1031 exchange can save you in at least 4 ways:
1. Depreciation Recapture. That rate is 25%.
2. Federal capital gains either 15% or 20% saved.
3. Medicare Surtax of 3.8% saved for anyone wih income over $200,000.
4. State taxes on capital gain income.
BUT, it has to be done right from the beginning. Call us; 270-689-1717