As we heard yesterday on Inside Agriculture, with the passage of the fiscal cliff legislation on January 2nd, there were some tax changes as well. Sarah Windham, Sr. Tax Manager with Dixon, Hughes & Goodman with offices in North & South Carolina explains that while some of the new tax forms have yet to be released from the IRS, that doesn’t mean that your tax professional can’t go ahead and prepare your taxes:
"Fortunately in most cases, as a CPA, we can go ahead and prepare the forms using the draft forms that are out there. So meeting with your accountant can be a good option because we can go ahead and get a draft of the tax return. We just cant actually file it until the forms have been approved and released by the IRS.”
One of the tax issues addressed in the legislation passed was capital gains. Windham explains:
“That was one of the big things that was on the table with the fiscal cliff and all of the other sunset provisions. The capital gains rate last year for federal tax returns were 15% if you have a long term capital gain. A lot of people were concerned that those would go up significantly with the fiscal cliff tax bill, but they have only been raised to 20% for 2013. The state level will vary by state.”
We’ll wrap up with Sarah Windham, Sr. Tax Manager with Dixon, Hughes & Goodman discussing estate tax issues tomorrow on Inside Agriculture.