Minnesotans Look to Avoid Fiscal Cliff
The rush is on as some sell investments before year's end.
If the country falls over the looming fiscal cliff the capital gains rate will increase from 15-percent to at least 20-percent.
But many Minnesotans are considering strategies designed to avoid the higher tax.
Investors can avoid the increased rate by selling stocks earlier than they had planned to. By selling prior to January 1, 2013, an investor will likely keep more of their capital gain than they would by selling a day later.
Likewise, Minnesota business owners are considering selling their businesses to avoid higher capital gains rates. In fact, business appraisers say higher tax rates are motivating hundreds of Minnesota companies to put themselves up for sale.
A word of caution though; analysts say if lawmakers in Washington compromise and avoid the fiscal cliff, people who sold early may wind up with seller's remorse.