Fiscal Cliff Impact on Taking Deductions
"This year is very confusing because of all the unknowns," said tax professional Steve McCurley, fielding calls from clients about the fiscal cliff and it's impact on the bottom line.
"Right now, what the talk is and what we know is our tax rates are going to increase," he said.
And that is having an impact on how people are looking at their deductions now, typically...
"Fiscal cliff has been a problem for us," said Steve Whitaker of John 3:16 feeling the brunt of that difference. Traditionally this time of year the mission gets 40% of its yearly income, but with the cliff...
"We have lots of people that are pushing back from the table that have been donors in the past who have given a pretty good amount at the end of the year and this year they're writing and saying we can't give or we're going to have to reduce our gift," he said.
And yet, that deduction hesitancy going around, may not be the best move.
"See Burt this is why it's so confusing, I'm sitting here saying you know you should possibly consider deferring your deductions until 2013, but the flip side of this is if they limit our home mortgage interest, if they start disallowing deductions in 2013, well, it's very possible and probably that I should take the deduction in the current year," said McCurley.
The head spinning effect of the fiscal cliff, and we haven't even fallen off yet.
"Without a doubt it's an exceptional year," he said.