The Fiscal Cliff: A Case for Charitable Giving and Defensive Positioning

by Leon C. LeBrecque, CPA, CFP(R), CFA
LJPR, LLC

Click here to read an overview of the income and estate tax effects for individuals and nonprofit institutions at the prospective expiration of the Bush Tax Cuts

The expiration of the Bush Tax cuts affects virtually every individual taxpayer in the United State, as well as corporations and nonprofit institutions. In general, on December 31, 2012, the tax law reverts to the tax law previously in effect in 2001.  The expiration will increase taxes on all taxpayers in varying amounts, with some taxpayers experiencing a virtual doubling of income taxes. In addition, a major component of the law is the Estate and Gift tax section. If the estate tax reverts to the pre-Bush tax cut level, there will be a significant increase in estate and gift taxes on American with estates over $1M.