Call your clients about taxes

By Robert Pujia

Fusion Capital Management


Post election is always an important time to contact your clients, particularly since we saw a significant drop in the stock market. They want to hear from you. One idea is to speak to them about tax strategies. For the moment, the lower taxes that were enacted a decade ago appear in danger of increasing.

There essentially will be two taxes enacted on investment income. First, the tax rates are set to increase on capital gains from 15 percent to 20 percent and the tax rates on dividends are set to increase from 15 percent to 39.6 percent. In addition, there is an Obamacare surtax on all investment income of 3.8 percent. The current situation, if nothing changes, will be as follows.

Capital gains tax rates
2012 = 15 percent
2013 = 23.8 percent

Dividends tax rates 2012 = 15 percent 2013 = 43.4 percent

The rates have been very popular with those that need income and/or are looking to reduce market exposure. In addition, there are many companies contemplating lowering or canceling their dividends altogether. If you are not already doing this, now is a great time to set up tax and income strategies for the upcoming year. Obviously, we don’t know what will unfold between now and the end of the year, but your clients will appreciate that you contacted them about setting up a strategy, regardless of what ends up happening. The more they hear from you, the more your business grows.