Fiscal cliff throws off experts’ year-end tax advice

Fiscal cliff throws off experts’ year-end tax advice
News from McClatchy Washington Bureau:

At 72, Paul Nagorski likes to own stocks that come with their own payday. Dividend checks add to his income.

The Kansas City, Mo., resident soon may be sharing more of his investing income with Uncle Sam. Like other investors, he’s heading for a tax cliff on Jan. 1.

“I’ll pay more,” Nagorski said. “I can afford to do it. I don’t like to do it.”

Now that the election is over, attention has turned to how President Barack Obama and Congress intend to deal with the automatic tax increases and spending changes set to kick in on New Year’s Day. Lawmakers had set up this fiscal cliff to force themselves to negotiate a long-term reduction in the federal deficit.

Failure to reach a deal would mean a sudden drop in federal spending, an end to the Bush-era tax cuts, and other tax changes on Jan. 1.

Dividends, stock gains, estates and even ordinary income would be taxed at higher rates – with the impact being felt broadly in the investing world.

Even investors inside tax-deferred accounts such as 401(k) plans and individual retirement accounts could feel the lingering changes wrought by the tax side of the fiscal cliff. This automatic rewriting of tax rules stands to make many investment choices less attractive, and a few more valuable.

The traditional year-end advice from tax experts has turned topsy-turvy. The standard advice, to…………… continues on McClatchy Washington Bureau

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Landlords offered property investment tips
News from Stride:

12 Nov 2012

Would-be landlords who want to make an investment but are unsure of what type of property to go for have been offered some suggestions by an expert in the sector.

Charlie Cunningham, chief executive at FreshStart Living, suggested it may be an idea to think outside the traditional terraced houses and flats.

“Renovated mill conversions are doing well for landlords at the moment, as they tend to be more affordable than new-build properties, which are often overpriced,” he commented.

With young professionals on the lookout for places to rent, smaller apartments could also be worth buying.

“Apartments located close to the city centres, if they are purchased below at a price below the market value, allow landlords to charge cheaper rents than their competitors, whilst still generating high yield,” Mr Cunningham remarked.

This could minimise void periods, something that may be crucial during these tough economic times.

Of course, there is also the option of going for student housing, which has been in the headlines recently following the start of a new university year.

“Manchester and Salford are of particular interest to investors because they are popular student cities with an undersupply of student accommodation, meaning it’s easy to find a tenant and to see high returns,” the expert advised. continues on Stride

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