• The Lady, or the Tiger: Making Informed Choices in 2013's Uncertain Federal Income Tax Environment
  • July 7, 2012 | Author: Yoram Keinan
  • Law Firm: Greenberg Traurig, LLP - New York Office
  • Individuals and trusts that will be subject to U.S. federal income tax in 2013 are facing a challenge remarkably similar to that of the protagonist in The Lady, or the Tiger, Frank Stockton’s famous 1882 short story. In the story, the hero must choose between two unmarked doors; behind one is a beautiful bride and behind the other is a hungry tiger. He has been offered some clues, but these clues as easily could be false as helpful. So it is for individuals and trusts attempting to structure their affairs in a tax-efficient manner at this time. The tax environment for 2013 is in a state of flux, and taxpayers cannot be certain whether their choice will result in tax savings or additional tax being paid. This Alert summarizes what can be said for certain, what issues are still open and some possible outcomes. And while we cannot predict the legislative conclusions, we will do our best to provide helpful clues.