The “Bush tax cuts” are getting an extension for two more years. They had been scheduled to expire at the end of this year. I imagine that CPA’s phone will not be as quiet this week as they had hoped.
This decision – heck, any decision – has been much anticipated so that people could do their end-of-the-year planning. The good news is that it also comes with some direction about the estate tax so we can all move forward with estate tax planning as well.
What should you do?
You have probably been talking to your accountant about this contingency, and now you need to act. If this means shifting income from this year to next, taking more expenses this year, converting an IRA to a Roth, etc., you now need to make all that happen before the end of the year. (As if you didn’t have enough to do already.)