In the early morning hours of January 1, 2013, the Senate approved the American Taxpayer Relief Act of 2012 (the “Act”) by a vote of 89-8. Less than 24 hours later, the House of Representatives also approved the Act by a vote of 257-167. Late in the evening on January 2, 2013, President Obama signed the Act into law remotely from his vacation in Hawaii bringing to a close, at least temporarily, the fiscal cliff debate.

After the Act, 2013 will bring about higher taxes for most, if not all, Americans. The wealthy will face higher tax rates and increased limitations on deductions, while all working taxpayers will face an increased payroll tax rate. While estate and gift tax exemptions will be set at $5,000,000 per spouse and will benefit from future indexing for inflation, the top estate and gift tax rate will rise from 35% to 40%. The Act also extends through 2013 many business friendly provisions including the current “bonus” depreciation rules, enhanced Section 179 business expensing, and popular credits such as the New Markets Tax Credit and the Work Opportunity Tax Credit.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

IRA
Tax

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Butler Snow LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×