The Investment Scientist

Tax planning tips

In the past, I have advised my clients to defer income recognition and capital gain realization so that they can pay taxes later. Not this year! Under current law, major tax changes are set to happen at the end of the year. These include:

• Tax rates on ordinary income will rise. The rates for most brackets will increase by 3%. The highest top marginal tax rate (which was for income above $388,350 for both single and married filing joint filers in 2012) will go from 35.0% (in 2012) to 39.6% (in 2013).

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