6. Integrate tax and investments strategies.
The big lesson for the 2013 season: Integrate tax, financial planning and investment strategies.
Clients were swept off their feet by the new 3.8% net investment income tax, the 0.9% additional Medicare surtax on wages and higher capital gains (they’re now at 20%, up from 15%, at the highest level).
This was a good year to get cracking on strategies that would control income and capital gains taxes – and to prepare for the years ahead.
“This season pointed out the importance of integrating financial planning with tax planning,” Mr. Benson said. “There is also a change of mindset from the tax-planning standpoint that it needs to be multiyear-focused now.”