Recessionary 3rd Quarter Notes

“Occupy Wall Street” occupies far too much of the news media these days. I thought a tax planning reminder would be a good way to get my attention off those un-enlightened individuals who are wasting more of our tax dollars forcing cities to have to clean up after their often rude and disrespectful behavior.

It’s always wise planning to visit your CPA during the last quarter, and bring him up to date with your 2011 income & deductions. This allows you time to make critical moves that may save you hundreds or thousands of dollars.

One significant item is the “2011 payroll holiday” tax break [I can hardly bring myself to call it a tax break since it really amounts to stealing from Social Security to make the President appear to be helping us…]. Nonetheless, you may want to consider accelerating any income subject to payroll tax (wages, bonuses, self-employment income) to tax year 2011, and save yourself that extra 2%.

The $5 million lifetime exemption amount also makes this year a favorable one for estate & gift planning. Who knows what the exemption will be when politicians get back to fighting over the Bush tax cut extension, which I am certain will result in a reduced exemption amount!

If you were contemplating making any smaller gifts using the annual gift exemption, be sure to plan ahead of the Dec 31st deadline, especially when it involves partial deed or title transfers.

Taking investment gains or losses, increasing your 401k or pension contributions, charitable donations, and more are available to help you manage the tax bite for 2011. More complicated depreciation and asset transfer techniques for high-net worth taxpayers are areas that your tax advisor can evaluate with you at this important year-end meeting. Yes, the rich really do pay more than their fair share of taxes! [A factual, yet politically charged statement like that makes me glad my web designer disabled the comment feature on my web blog ;-)] If you want to comment, you can always email me on the Contact Us page.

So back to the current events ~ Here’s an excerpt from an interview with legendary money manager, Bob Rodriguez, on the state of our economic crisis:

“…Rodriguez says that current federal and congressional monetary and fiscal policies still do not attack structural issues and have therefore been ineffective.

“The country is headed for recession next year, Rodriguez forecasts. His outlook for the markets? Unequivocally cautious. Congress and the Obama administration have created high levels of uncertainty that continue to create volatility and a negative bias in the markets, the money manager says.”

You can click here to read the entire article.

~ OR ~ maybe you’d prefer to listen to one of my favorite singers paint a picture of real America 2011.

Enjoy! I will be on my annual paradise vacation visiting family & friends for a couple of weeks. Aloha!