For anyone following our blog for the past several months you know it has been our opinion that the Bush tax cuts would be extended. Well that is exactly what happened. More specifically, on December 16, 2010 Congress passed the Tax Relief Act of 2010. What surprised us about the 2010 Tax Bill, however, was the reinstatement of the Federal Estate Tax and the gift it provides to those who amass a modest estate over the course of a lifetime.
The following summary (see below) of the Tax Relief Act of 2010 is provided compliments of UHY Advisors, Inc. UHY is a tax and business advisory services firm with whom we have had a strategic partnership with for over 25 years:
Congress and President Obama Agree on New 2010 Tax Bill On December 16, 2010, Congress passed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act (“the Tax Relief Act of 2010”), which not only extended many favorable tax provisions, but also extended (or, in some cases, reinstated) many other tax benefits until January 1, 2013 (subject to certain modifications noted below). President Obama is expected to sign the bill within the next few days. This Alert highlights some of the more noteworthy provisions of the Tax Relief Act of 2010. FAVORABLE TAX PROVISONS AFFECTING INDIVIDUALS EGTRRA’s 2010 Tax Rates and Certain Other Tax Breaks Extended Through 2012 –
Social Security Payroll Tax Credit – Also, for 2011 only:
Alternative Minimum Tax (“AMT”) Patch – A two year patch for 2010 and 2011 will increase the AMT exemption amount to $47,450 for single taxpayers and to $72,450 for married taxpayers filing jointly for 2011 and to $48,450 for single taxpayers and to $74,450 for married taxpayers filing jointly for 2012. Without the patch, the House Ways and Means Committee estimated that approximately 21 million additional taxpayers would owe AMT for 2010. Long List of Tax Breaks For Individuals Retroactively Reinstated and Extended Through 2011 – Many tax breaks for individuals that expired at the end of 2009 will be retroactively reinstated for 2010 and extended through 2011, including the following:
UHY Advisors, Inc. provides tax and business consulting services through wholly owned subsidiary entities that operate under the name of “UHY Advisors.” UHY Advisors, Inc. and its subsidiary entities offer services from offices across the United States. UHY Advisors, Inc. and its subsidiary entities are not licensed CPA firms. UHY LLP is a licensed independent CPA firm that performs attest services. UHY Advisors, Inc. and UHY LLP are independent U.S. members of Urbach Hacker Young International Limited.
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