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Congress Passes Tax Cuts Extensions

22 Dec

Congress has approved, and President Obama has signed the Tax Relief, Unemployment Reauthorization and Job Creation Act of 2010.  The bill extends the Bush-era individual and capital gains/dividends tax cuts for all taxpayers and sets a top estate and gift tax rate of 35% with a $5 million exclusion for two years.

Bill highlights include new items such as:

  • An estate and gift tax relief with an estate and gift tax rate of 35% and exemption of $5 million. The new law also allows any unused exemption of a deceased spouse to be transferred to the surviving spouse by way of election. This provision allows a couple to exempt up to $10,000,000 from estate tax without the need for complicated estate planning.
  • A payroll tax cut of 2% for employees for 2011. Employer’s portion remains the same.  The 2% rate cut also applies to the social security portion of the self-employment tax.

Bill extends certain items such as:

  • Maintain individual tax rates
  • Maintain capital gains/dividend tax rates
  • Two-year AMT patch
  • $1,000 child tax credit
  • American Opportunity Tax Credit and other education incentives
  • Research and development credit for 2010 and 2011
  • Business extenders
  • Energy incentives

Visit the IRS website for all the particulars.

Merry Christmas from all of us at Calvary Baptist Church!

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Posted by on December 22, 2010 in Uncategorized

 

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