Michele Lipson, Tax & Business Partner, Quoted in the Florida Trend Article "Tax Advice for Floridians and Businesses"
By Lilly Rockwell
With fewer tax-cut expirations on the horizon, there’s less uncertainty. High-wage earners are facing higher taxes.
Last year, accountants stayed busy with the expiration of an estimated $500 billion in Bush-era tax cuts. This year is more stable. Back to normal means searching for ways to reduce taxes an individual or business pays by deferring income or increasing expenses. Some uncertainty remains about whether certain tax breaks will be continued.
Advice for Individuals
Investing: Watch your investment income closely. A new 3.8% Medicare tax on investment income over $200,000 ($250,000 for married couples) kicks in this year. This is on top of the typical taxes paid for capital gains, which can be as high as 20% for high-income earners. Michele Lipson, a partner at Marcum LLP’s Tax and Business Services division in Miami, says Floridians who have more than $200,000 in investment income this year need to prepare to pay a higher tax rate or sell stocks at a loss to get under the $200,000 threshold, Lipson says. “The key is being able to time income and expenses to put you just below the limit,” she says. Investment income can be capital gains from stocks or passive income such as income from rental properties.