Since many tax planning articles focus on providing year-end tax advice and planning techniques that may be effective only under certain assumptions about control of Congress and the presidency, some of the time-tested strategies that may benefit taxpayers regardless of the outcome of the election have fallen through the cracks.
Tax professionals offering tips based on possible legislation are essentially gambling and “betting on the House” (and the Senate and the presidency). However, it may behoove tax and financial professionals to avoid the urge to bet on the House and to simply focus on some traditional tips that have withstood the test of time. By doing so, professionals can increase the odds of providing beneficial and effective tax financial planning advice during these uncertain times.
This column reminds advisers of those tips that may be beneficial regardless of what plan is in place in 2013—keeping in mind that effective tax planning advice should ultimately be tailored to each client’s current financial situation, tax bracket, and other key personal factors.