LISTEN NOW: Wealthy Brace for Obama Taxes
Over the weekend, I spoke with WTOP about how wealthy people can prepare for potential tax increases under the Obama administration. While President-elect Barack Obama has emphasized that he would not increase taxes for anyone earning less than $250,000, he has also said that he supports tax increases for the wealthiest 2 percent. Those increases would most likely come in the form of income taxes as well as capital-gains taxes.
If you're wealthy enough to fall into that 2 percent category, then you can try to protect your assets by pulling as much income as possible into 2008, which is governed by the current tax codes. Highly paid basketball stars, for example, may want to speed up their contract negotiations so they have those signing bonuses in hand by December 31.