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.
Read More: http://www.cnbc.com/id/49792979
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