In 2010, Summer Vacation Should Include Midyear Tax Planning

Originally published in The Legal Intelligencer

Summer is here and the time is right for thinking about the beach, baseball, barbecues and tax planning. Yes, tax planning. Not likely at the top of your to-do list, but it should be. "I can wait until the end of the year," you convince yourself, however, year-end may be too late. We have all heard taxes will likely rise beginning in 2011, which makes it a challenging time to begin planning for 2010 and beyond. However, the 2010 federal income tax environment is still quite favorable, which makes tax planning in 2010 even more critical.

In 2001 and 2003, Congress enacted several tax cuts for investors, small business owners and families. Absent congressional action, these cuts will all expire on Jan. 1, 2011. The expiring tax cuts presumed to have the greatest impact on most taxpayers, include the following: