Morningstar.com's Tax-Relief Week 2013

February 25 - March 1: Tips, strategies, and picks for tax-wise investing.

By Jason Stipp?| 02-28-13?| 06:00?AM?|?Email Article "The difference between death and taxes is death doesn't get worse every time Congress meets." --Will Rogers

Will Rogers' quote?was set on its head?recently as wrangling over the fiscal cliff, debt and deficit issues put U.S. investors' potential?tax rates in limbo as 2012 drew to a contentious close.

Jason Stipp is Site Editor for Morningstar.com

In this peculiar situation, Congress not meeting (and agreeing to a compromise) would have meant broad?automatic tax hikes, as several tax cuts were set to expire at the beginning of 2013. (With the estate tax exemption also set for a dramatic decrease, one could say Congress had the potential to make death a little bit worse, too, at least for your heirs.) Although our elected officials waited until the bitter end, a last-minute deal?did?bring some much-needed?clarity: The sunset provision was lifted for the?Bush-era tax cuts, essentially making them permanent?for individuals earning under $400,000--at least for now.?(Higher-income earners face higher rates in 2013.) The estate tax exemption was also?permanently set at?over $5 million per individual and will include inflation adjustments going forward. But despite the recent compromise, ongoing national debt woes still mean that?higher taxes, fewer deductions, or both?could be coming down the pike in the years ahead, and possibly not just for the wealthy. Because of the strong likelihood for tax hikes in the future, a sturdy, yet flexible tax plan (always an important consideration for investors) is even more critical today. Although tax considerations shouldn't drive your portfolio, you certainly don't want taxes to drag on your results any more than absolutely?necessary--especially if you believe the stock and bond markets will be serving up more moderate returns in the years ahead.? This week, Morningstar's experts will dig into the latest tax changes, lay out a sensible plan for investment-tax management, and offer up some of our favorite tax-efficient picks (for taxable accounts) as well as some topnotch ideas for your IRA. Bookmark this page and stay tuned, as new reports will be posted here as well as our?Minimize Taxes Center?every day this week.? Monday | Feb. 25: New Tax Laws on the Radar Tuesday | Feb. 26: Maximize Tax-Sheltered Accounts Wednesday | Feb. 27: Manage Taxable Investments Efficiently Thursday | Feb. 28:?Reduce Taxes During Retirement? Friday | March 1: Pitfalls & Special Situations

Be Seen. Be Heard. Become a Morningstar Contributor.
Reach a readership of advisors, professionals, and active investors. Submit your commentaries for publication on Morningstar.com.

TAXPLANNING

&primaryKeyword=TAXPLANNING

2

Source: http://news.morningstar.com/article/article.asp?id=586250&pgid=rss

camille grammer us supreme court breaking dawn part 2 trailer mississippi state chris carpenter chris carpenter dick cheney