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What happens to your taxes if we go over the fiscal cliff

Real Estate Tax Talk

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If you've been paying any attention to the news, you doubtless know that the United States is rapidly approaching a "fiscal cliff." This is the date that various tax cuts and benefits enacted over the past 11 years are set to expire. That date is Jan.1, 2013. It's quite possible that President Obama and Congress will come to some agreement before Jan. 1 and extend at least some of these tax cuts. However, it seems equally possible that they won't. What happens as of Jan. 1 if no deal is reached and we plunge off the cliff? Your taxes are going to go up. The following handy chart shows what will happen if the most important of these tax provisions expire. Expiring provision Effect if not extended Increase in size of 15 percent rate bracket for married couples to double that of unmarried filers The current 15 percent rate bracket for married couples filing jointly (200 percent of the deduction for unmarried individuals) will be reduced ...