Archive - December 23, 2010

1
2010 Tax Relief Act – What Didn’t Get Extended
2
What The New Tax Laws Mean For The Estate Tax Exemption Portability
3
The Actions You Need To Take With The New Tax Laws
4
Making Charitable Contributions From Your IRA

2010 Tax Relief Act – What Didn’t Get Extended

We’ve been hearing the news about the extension of the Bush-era tax cuts and how these tax law extenders will lower everyone’s taxes. But what you haven’t been hearing about are the items that weren’t extended which may have important tax implications for some.

Unemployment Benefit Exclusion – Under the American Recovery and Reinvestment Act (ARRA) of 2009, the first $2,400 of unemployment benefits an individual received in 2009 were tax free. This provision applied only to benefits received in 2009. Unemployment benefits after 2009 are fully taxable.

Non-Business  Energy  Property Tax Credits – For 2009 and 2010 the credit …

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What The New Tax Laws Mean For The Estate Tax Exemption Portability

Back in 1997, the lifetime estate tax exemption was $600,000 and the top estate tax rate was 55%.  The exemption increased through 2009 to $3,500,000 while the top tax rate declined to 45%.  For tax years 2011-2012 the exemption amount is $5,000,000 with a top tax rate of 35%.   However, in those prior years if the first spouse to die could not fully utilize the exemption amount because the value of the estate was below the exemption amount, the excess was lost forever.  For tax years 2011 and 2012, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of …

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The Actions You Need To Take With The New Tax Laws

Last week, tax legislation was passed that will extend our current income tax structure for two more years.  This includes the annual patch to the Alternative Minimum Tax.  In addition, it provides temporarily modification of our federal estate, gift and generation-skipping transfer tax code through 2012.  Employee Social Security taxes will be lowered by 2% so employees will pay 4.2% on wages and self employed people will pay 10.4% on self employment income up to $106,800.  Finally it allows for an extension of unemployment insurance for an additional year.

From a macro perspective I believe that the tax legislation is …

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Making Charitable Contributions From Your IRA

With the passage of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (Tax Act 2010 or 2010 Tax Act), Congress retroactively reinstated the ability to make direct qualified charitable distributions (QCDs) from your IRA, in amounts up to $100,000 by IRA owners who are at least age 70½ years of age.

This provision expired at the end of 2009, but is once again available, retroactive to January 1, 2010, through December 31, 2011.

The provision allows the individual, age 70½ and thus subject to Required Minimum Distributions (RMDs), to make contributions directly from an IRA to …

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