For many of the wealthy, 2012 is becoming a good year to sell.
They're worried about the "fiscal cliff," which is when tax cuts expire and spending cuts are set to go into effect at the end of the year.
Fearing
an increase in capital gains and dividend taxes, many of the rich are
unloading stocks, businesses and homes before the end of the year.
Wealth
advisors say that with capital-gains taxes potentially going to 25
percent from 15 percent, and other possible increases in the dividend
tax, estate tax and other taxes, many clients are selling now to save
millions in taxes.
“Under
almost any scenario, it makes sense to take the gains this year,” said
Gregory Curtis, chairman and managing director of Greycourt & Co.
“Clients aren’t selling willy nilly. But if they can and they have a
huge gain, they’re selling now.”
If
the Bush-era tax cuts expire, taxes on capital gains would revert back
to its previous rate of 20 percent from its current 15 percent. Another
5 percent may be added from health-care levies and changes in itemized
deductions, bringing the rate to 25 percent for many high earners.
Taxes
on dividends could go from 15 percent to over 43 percent. And the
estate tax could go from 35 percent on estates worth more than $5
million to 55 percent on estates over $1 million. (Read more:
As
a result, the wealthy are taking a close look at all of their assets to
see what could or should be sold off now to avoid potentially higher
taxes next year.
Read more: http://www.cnbc.com/id/49792979
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