I am not sure how you can have great faith in the thoughtfulness of a process over hundreds of billions of dollar of our (the taxpayers) money, that happened in all of 48 hours, but here is the what is going to the president for signature as “the American Taxpayer Relief Act.” The highlights: Income Tax: The top income tax rate jumps to 39.6% (up from 35%) for individuals making more than $400,000 a year ($450,000 for joint filers; $425,000 for heads of household); Estate, Gift, GST Tax: For estate, gift, and generation-skipping transfer (GST) tax purposes, for individuals dying and gifts made after 2012, there is a $5 million exemption (adjusted for inflation), and the top estate, gift and GST rate is permanently increased from 35% to 40% (whoo hoo – a permanent estate tax law!)  Social Security: The two-percentage-point reduction in Social Security tax, will be allowed to expire, so the employee portion of the tax will go back up to 6.2% (has been 4.2%); AMT: The alternative minimum tax (AMT) “patch” is made permanent. View Full Post
Hurricane Sandy Extensions of IRS Time to File The IRS has extended time to make tax payments and file returns of taxpayers in counties that have been designated as federal disaster areas qualifying for individual assistance. Affected taxpayers are those listed in Reg. § 301.7508A-1(d)(1) and would include any person whose principal residence, and any business entity whose principal place of business, is located in the counties designated as disaster areas.  For a trust or estate this would include any one that has its tax records in the counties designated as disaster areas. View Full Post