3 ways to beat rising tax rates
In this troubled economy, some tax rate hikes are likely by the end of the year. Here's what to do now to cushion the blow.
Don't delay needed portfolio fixes
The battle: Chances are the middle class will hold on to the 15% rate on capital gains and dividends. High-income households, though, could face a jump to 20%.
One possible compromise, says Anne Mathias, research director at Concept Capital's Washington Research Group: Keep investment rates low for all, but raise income taxes on the wealthy.
Smart moves: "Don't let the tax tail wag the dog," advises Boca Raton, Fla., certified financial planner Mari Adam. But if your portfolio is out of whack because a single stock or fund is way up, think about reaping gains when you're sure of paying 15%. If you have substantial capital losses, Luscombe says, consider saving them to offset future gains.
NEXT: Prepare for estate taxes to rise from the grave
Last updated October 14 2010: 12:30 PM ET
