The Tax Relief act of 2010 – Mapping out strategies for individuals

Description

Abstract: The many provisions of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, passed in December, map out the tax planning terrain for the near future. This article shows the new law’s effect on income and Social Security taxes and the AMT; long-term capital gains and qualified dividends; tax breaks for parents; and the ability to take an itemized deduction for state and local sales taxes in lieu of state and local income taxes. A sidebar discusses how the law affects gift, estate and generation-skipping transfer (GST) rates and exemptions.