{"id":12755,"date":"2013-01-18T15:54:45","date_gmt":"2013-01-18T20:54:45","guid":{"rendered":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2013\/01\/american-taxpayer-relief.html"},"modified":"2017-11-08T11:12:00","modified_gmt":"2017-11-08T16:12:00","slug":"american-taxpayer-relief","status":"publish","type":"post","link":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2013\/01\/american-taxpayer-relief\/","title":{"rendered":"American Taxpayer Relief Act Signed In Jan. Affects Capital Gains, Payroll Tax And More"},"content":{"rendered":"
\n<\/div>\n
Steve Cardinal is a tax partner at Teal, Becker & Chiaramonte in Albany.<\/em>\n<\/div>\n
By Steve Cardinal, CPA<\/p>\n
The American Taxpayer Relief Act, which Congress passed and President Obama signed in the first days of 2013, has many provisions.<\/p>\n
The following is intended to provide an overview of the act.<\/p>\n
\u00e2\u20ac\u00a2 Tax rates : Congress made the Bush-era tax cuts “permanent” by adopting the 10, 15, 25, 28, 33, 35 rate classes previously enacted. An additional rate of 39.6 percent will begin at $400,000 for single (S) individuals, $450,000 for married couples filing joint returns (MFJ), and $425,000 for heads of households (HOH).<\/p>\n
\u00e2\u20ac\u00a2 Capital gains: The new law increases the tax on capital gains to 20 percent for taxpayers who have reached the above thresholds ($400,000 (S); $425,000 (HOH) and $450,000 (MFJ)) \n\u00e2\u20ac\u00a2 Payroll tax cut: The tax act did not extend the holiday on employee payroll taxes. Beginning Jan. 1, the employee portion will return to 6.2 percent.<\/p>\n
\u00e2\u20ac\u00a2 AMT: A permanent “patch” increased income exclusions for the alternative minimum tax and future exclusion amounts will be tied to inflation.<\/p>\n
\u00e2\u20ac\u00a2 Child tax credit and related incentives: The American Taxpayer Relief Act makes permanent the $1,000 child tax credit along with several other Bush-era incentives.<\/p>\n
\u00e2\u20ac\u00a2 Education incentives: Several educational credits and deductions are extended. These include the American Opportunity Tax Credit, the above-the-line higher education tuition deduction, the teachers’ classroom expense deduction and others.<\/p>\n
\u00e2\u20ac\u00a2 Charitable giving: Distributions made from an IRA to a charity will remain tax-free through 2013. A related provision allows distributions made in January of 2013 to be re-characterized as made on December 31st, 2012.<\/p>\n
\u00e2\u20ac\u00a2 Federal estate tax: Relevant to family wealth planning, the new law increases the top estate tax from 35 to 40 percent effective January 1st, 2013. The $5,000,000 estate and gift tax exclusion will continue indexed for inflation. For 2012 the limit was $5,120,000.<\/p>\n
\u00e2\u20ac\u00a2 Bonus depreciation\/small business expensing : The new law extended 50 percent bonus depreciation through 2013 and set Code Sec. 179 small business expensing allowances at $500,000 and investment limits at $2 million for both 2012 and 2013.<\/p>\n
\u00e2\u20ac\u00a2 Tax extenders: Multiple tax benefits were extended through 2013. Most notably the research and development credit and the work opportunity tax credit.<\/p>\n
Cardinal is a tax partner at Teal, Becker & Chiaramonte, an accounting and advisory firm in Albany. He can be reached at 518-456-6663 or scardinal@tbccpa.com.<\/p>\n","protected":false},"excerpt":{"rendered":"
Steve Cardinal is a tax partner at Teal, Becker & Chiaramonte in Albany.By Steve Cardinal, CPA The American Taxpayer Relief Act, which Congress passed and President Obama signed in the first days of 2013, has many provisions. The following…<\/p>\n","protected":false},"author":87,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\r\n
American Taxpayer Relief Act Signed In Jan. Affects Capital Gains, Payroll Tax And More - Glens Falls Business Journal<\/title>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\n\t\n\t\n\t\r\n