After last Tuesday’s election results, much of the discussion around politics has shifted from political ads – to discussion about the upcoming “Fiscal Cliff” and what is going to happen at the end of 2012 with your taxes.
In simple terms – we have a set of tax laws that will be expiring at the end of 2012, with no real plan or direction of what will happen next. If nothing is done, the clock will go back to tax laws from many years ago – and this is not good. There is a lot of discussion out there about what might happen between now and December 31st – but no one knows for sure.
We all will see an impact in one way or another. We just don’t know how yet. For planning purposes, we have been limited based on this lack of future direction with our tax policies. I can honestly say that I have never quite seen it so dysfunctional in all my years of working in the tax business.With that being said, at Business By Design, we will be carefully watching what develops and keeping you informed of what changes will be applying to your situation. We would love to be able to give you more specific information now, but there really is nothing to give.