The triple threat of federal tax increases -- the 39.6% top marginal tax rate, the 20% tax on long-term capital gains and dividends, and the new 3.8% net investment income tax -- has high-income taxpayers looking for ways to reduce their tax bills. Wealthy taxpayers also face an income-based phase-out of personal exemptions and itemized deductions. Advisers suggest that clients look to S corporations and other flow-through entities, increase charitable donations, and defer income by investing in private placement life insurance and private annuities. Find an extensive collection of resources to help you assist your clients with planning after ATRA and NIIT on aicpa.org.
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