On Jan. 1, 2013, home owners and investors could be subject to much higher tax rates on capital gains.
-Potentially significant changes in the tax rate on capital gains after 2012 suggest a more proactive capital gains strategy starting now
-In 2013, the Bush tax cuts are scheduled to expire. This would increase the maximum tax rate to 21.2% on long-term capital gains and 40.8% on short term capital gains
-These two changes would result in a combined 66 2/3% increase in the maximum federal long-term capital gains rates on the sale of stock in 2013 compared to a sale in 2012 (a 25% rate compared to a 15% rate)
-The likelihood for significant increases in the long-term capital gains rates would suggest that you recognize your long-term gains in 2012 and hold off on selling your losers until 2013
-Higher expected capital gains tax rates combined with low cost of capital make capital gain recognition in 2012 more attractive than any year in recent memory