Scott Remington //December 21, 2012//
If there is anything that history has taught us, it is that it’s impossible to predict the future. And this year, even making an educated guess about what 2013 will hold for Colorado businesses is difficult, thanks to the rancorous political environment and the looming fiscal cliff. But that shouldn’t be an excuse to put off preparation and planning.
There is a distinct possibility that taxes will increase. If the current standoff between the President and Congress continues and no actions are taken, we could see taxes increase to as much as 39.6 percent on ordinary income and 23.8 percent on capital gains.
It can be extraordinarily difficult to plan for such uncertainty—paralyzing in some cases. But planning and preparation will be crucial for businesses, even though the temptation may be to take a wait-and-see approach. There are actions organizations can take now to reach a more advantageous tax position while officials are working to come to an agreement on how to manage the fiscal cliff.
The fiscal cliff has the potential to significantly change the cost of doing business. It’s important for organizations to work with their tax professionals to take into account the possibility of expiring tax cuts and rate increases when planning for next year and beyond.