"Many if not most American's have no idea what the tax implications are to their bottom line this year," says Pathfinder President and Tax Attorney, Drew Miles, "but they will be shocked and not in a good way."
Sebastian, Florida (PRWEB) November 20, 2013
”Many, if not most American’s have no idea what the tax implications are to their bottom line this year,” says Drew Miles, President of Pathfinder Business Strategies, a tax attorney, author, lecturer and founder of one of the nation’s leading financial, tax consulting and tax strategy firms. “People are going to be shocked and it will be too late for them to do anything about it, unless they act now, there is less than 30 days left in the year do actually do something meaningful and valuable to help save money on your taxes this year,” says Miles, whose company has helped more than 7000 clients nationally since 1998 save more than half a billion dollars in taxes. (http://www.taxsavingprofessionals.com)
“If you are a business owner, a high net worth individual, a high-income earner, and you haven’t been paying attention to what is going on with the new tax laws and changes, you are going to be shocked, and not in a good way,” says Miles. “Unless of course you don’t care how much money the government is going to be taking from your income?”
According to Miles, “there are many, many high-income taxpayers now who are finding they are facing tax rates in excess of 50 %, high-income earners are seeing a combination of federal tax increases for 2013.” Among a host of others, here are just a few new startling tax facts that will impact Americans:
- Top marginal rate of 39.6 %, an increase from 35 %
- 20 % tax on long-term capital gains and dividends; an increase from 15 %
- 3.8 % tax on investment income
Most businesses have been paying quarterly estimated taxes based on their liability for 2012 which is fine according to the IRS and the “safe-harbor” rule, which still applies, according to Miles.
Where you are located in the country also impacts on your new tax rates and tax structure. In California, the “new” top rate is 13.3 % on income exceeding $1 million.
High-Net Worth Individuals will be Hit Hard
High net-worth and “wealthy” individuals are going to feel more than a little pinch to their pocketbooks, but more like the big arm of government swooping in to help themselves to a huge handful of cash to their bottom line.
- For example, the rate on long-term gains and qualified dividends can be up to 25 %. That’s a 67 % increase from 2012.
- Moreover, the rate on other investment income such as royalties, interest and rents can exceed 43 %.
The reach of these new tax laws stretch across the country to the other coast. New York is another prime example of a state where the “well-to-do” will be getting a gigantic governmental wallop to their wallet.
The Facts for married New Yorkers:
- Married $600,000 in wages,
- $100,000 in qualified dividends
- $300,000 in long-term capital gains
- $145,000 in itemized deductions
While New Yorker’s might generally be more accustomed to pay more for their Starbucks Double Espresso’s and higher taxi cab fares, residents of the Big Apple will pay 17 %, or $37,000, more in U.S. taxes this year.
Lawmakers also reinstated phase-outs of personal exemptions and itemized deductions for adjusted gross income exceeding $250,000 for individuals and $300,000 for married couples.
Good News, Bad News
On the one hand, observes Miles, the good news for investors is that this year’s stock market rally, specifically the Standard & Poor’s 500 Index is up 25 % through October. The bad news, however, is that these new tax laws will have serious tax implications for many investors with mutual funds that pay dividends. “When the dust begins to settle on this come next year, this could end up being the catalyst for another recession,” says Miles, “especially as it affects business owners. When all of this hits the economy and small business owners are paying more in taxes than they expected, that means there is less to invest in people, property, inventory; costs to operate business are skyrocketing, not to even mention what’s going on with healthcare, business owners and the wealthy are (going) to get hammered, and that is not going to be good for the working people of this country or the economy.”
A Free One-Hour Interactive Webinar
Pathfinder Business Strategies is offering business owners and high-income earners an opportunity to take advantage of the small window of opportunity, less than one month that remains this year to learn about how they can pay less taxes and keep more of their money in their pockets, where it belongs. “We have three weeks remaining where we can actually do work of value and importance to clients and prospective clients where we can save them money and help them pay less taxes to the government, after that, it’s out of our hands and in Uncle Sam’s hands, and we do mean that literally.” To sign up for this live interactive one-hour Tax Saving Webinar, click the link here: http://www.tax-saving-professionals.com/register-for-free-tst/.
About Pathfinder Business Strategies
Since 1998 Pathfinder Business Strategies (http://www.TaxSavingProfessionals.com) has helped more than 7,000 clients nationally save more than half-a-billion dollars in taxes. The average American pays 31% in taxes, the average Pathfinder clients pays 15% in taxes. Founded by tax attorney Drew Miles, Drew spent more than 6 years pouring over the IRS tax codes seeking ways in which he could reduce his own personal taxes. The majority of tax professionals regularly use between 15 and 20 tax strategies to help clients reduce their taxes. Pathfinder utilizes more than 400 rarely used, misunderstood or simply unknown tax strategies by the majority of tax professionals. These strategies were developed by Drew along with a team of tax lawyer’s and CPAs, including a former IRS Revenue Officer and a former prosecutor with the Department of Justice with a 100% conviction rate. Not one of Pathfinders tax saving strategies has ever been overturned by the IRS. Pathfinder Business Strategies achieves this through record keeping and documentation combined with diligent compliance for provisions in the tax code supervised by the company’s team of tax professionals -- CPA’s, Attorneys, Enrolled agents and a host of paralegals. Drew Miles is an accomplished entrepreneur, author and lecturer.