On December 17, 2010 several tax laws were extended for 2 more years but, in addition, there were a few new enhancements. Always seek a professional in these matters. Here are a few:
(1) Estate tax exemption is now portable for married couples. So, for the next two years everyone gets a $5 million exemption and, if married, the surviving spouse receives a $10 million exemption without creating any trusts. Be careful though since it is only temporary and also because these are Federal limits only - not states (MD is still $1 million, for example).
(2) Qualified dividends are taxed like long-term capital gains (15% bracket is zero and in higher tax brackets it is a maximum of 15%) but now the definition includes dividends from Real Estate Investment Trusts (REIT's). They used to be taxed at regular income rates.
(3) Some tax credits (like for education) and the phase outs of itemized deductions were also extended.
So, be sure to watch your tax calculations carefully and seek the advice of a tax professional or a certified financial planner before you take action.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.