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Highlights of the Tax Relief Act

Last week President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.  This legislation included a number of provisions which extended tax cuts which were slated to sunset (go away) at the end of 2010.  It also added a couple of new provisions to: reduce the tax for Social Security, extend individual income tax rates, and keep some key business tax deductions.  If you’d like a detailed explanation of the act go here [1] or call your ShindelRock accountant.  Throughout this post I’ll reference the page(s) to refer to in this explanation if you want more details.  If you’d really like to go all out and read the actual act go here [2].  Otherwise here’s a summary of the items which will affect most of our readers:

Individuals

Gift and Estate Taxes (Pages 39 – 53)

Businesses

Expense Limit

Property Purchase Limit

2010

 $      500,000

 $   2,000,000

2011

 $      500,000

 $   2,000,000

2012

 $      125,000

 $      500,000

2013

 $       25,000

 $      200,000

 

 

 

There are a number of credits extended as well as other miscellaneous items for both businesses and individuals.  CCH has published a good analysis [3] of the Act that provides some examples.  If you have any questions I would encourage you to contact us [4].