Fiscal cliff makes 2012 a challenge for tax planning
In more than 35 years as a certified public accountant, Greg Sevier said this year has probably been the most challenging one in which to do tax planning for clients.
"Don't spend money just to spend money," he said. "If purchasing that equipment ... provides an adequate rate of return for your business, do it."
Sevier said there are so many credits and exemptions set to expire this year that it's challenging to stay on top of.
There's just a lot of things to consider," he said.
The one certainty that tax accounting chiefs agree on is that people who earn more than $250,000 a year will almost assuredly pay more in taxes.
But beyond that, it's anybody's guess, they said.
Davis said Republicans and Democrats could settle on a compromise that could change what exemptions and credits are set to expire, as well as whether income tax rates increase. Or, she said, "they kick that can and extend them one more year. Or they let things go down the cliff."
Added Sevier: "It affects individuals. It affects businesses. There will be a number of people affected by what Congress does -- or doesn't do."
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