Capital gain tax rates are likely to increase in 2013. Accepting your taxable gains now, instead of after January 1, 2013, may mean more profit and less taxes.
Capital Gain Tax Rates:
Depending on your tax bracket, some households may be able to seize the opportunity to earn capital gains tax free! However, the question of whether you should liquidate your investments now, instead of in the next year or two, in order to capitalize on lower tax rates, really depends on your short-term needs versus your long-term goals. In regards to investments, taxes should be a secondary consideration, not a primary consideration for investment strategies.
Paying attention to Washington D.C. will be important in these final days of 2012 to ensure that you have the right strategy in place for tax year 2013. These tax tips are very broad and you should consult with a tax attorney, certified public accountant, or other qualified tax professional that is familiar with your individual circumstances before making any tax planning decisions.