Higher 2011 Rates May Merit Acceleration (Taxes) (Statistical Data‪)‬

Tax rates are scheduled to be higher next year. It might be time to reverse your usual tax strategy. Instead of deferring tax, it may make sense for some taxpayers to accelerate income into 2010, defer expense into 2011 and pay tax at the current lower rates. The majority of the potential increases are due to the scheduled expiration of cuts enacted in 2001 and 2003 at the end of the year. Particularly: Capital gain: Top-level rate will increase from 15 percent to 20 percent (18 percent for property held five+ years).