Endangered Tax Breaks and Benefits
Many tax deductions and subsidies are set to expire in 2012 unless Congress steps in to save them. Could any of these raise your tax bill?
Some Bush-era tax cuts, as well as some long in place tax breaks, are expiring at the end of 2012.
Three of the most endangered tax provisions are:
- The capital gains rate at 15% on long term capital gains and qualified dividends
- The business research and development credit of 20%
- The IRA charitable donation expired at the end of 2011, but congress extended it thru 2012. You can make a charitable contribution up to $100,000 from your IRA and not pay tax on the IRA distribution.
For more details you can see this article from CNBC.com.
For many of our clients, the expiration of these breaks could increase their taxes significantly. If you have any concerns that these may affect you, please contact your ShindelRock tax professional who can help you make that determination.