This is only
the beginning to what’s going to happen with the re-election of Obama.
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: CEO Sends Out Raises, Not Pink Slips
After Election)
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.
More here
Guess what
happens to out 401Ks when all this selling happens?
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