Deloitte Releases Guide for Taxpayers Having Uncertainty

Lucas Gilmore, “Big 4″ observer
November 19, 2010 /

Having in mind the state of taxpayers who have to face uncertainties in making financial decisions, Deloitte has released its 2011 Essential Tax and Wealth Planning Guide that offers individuals and private companies an aid in dealing with the impending changes in tax legislations over the coming months.

Julia Cloud, a partner with Deloitte Tax LLP and national leader of its private client advisors practice, recognized the impact that the changes in legislations in Washington may have on personal finances of the taxpayers. Cloud encouraged the individuals to make wise plans amidst these uncertainties to protect their assets when the time comes that the changes would be implemented by the state.

2011 Essential Tax and Wealth Planning Guide focuses on areas like income taxes, wealth transfer taxes, potential impact of increasing tax rates, ways to plan tax for the multi-state residents, and private businesses considerations to help taxpayers with their financial decisions, Cloud said.

Eddie Gershman, a partner at Deloitte Tax LLP and a contributor to the guide, said, “While these are uncertain times, it is still critical that individuals plan for the potential for increased income tax rates.”

Gershman pointed to different opportunities in income-related tax planning and the use of credits and deductions as aids to individuals in successfully adapting with the inconsistent tax rate environment.

Deloitte’s guide encourages taxpayers to go on planning regarding their finances while following religiously the existing law since most of its benefits may continue even as the legislation changes the tax environment.

Deloitte also includes in the guide advices for taxpayers to “analyze a proposed transaction and alternative outcomes” before making decisions related to the possible changes.

Lastly, the guide warns taxpayers to be aware of tax and nontax changes and of their potential risks that may come along the way.

 

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