Tax Relief Act of 2010: What Lawyers Are Saying

For your reference, here’s a JD Supra reading list to do with the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 signed into law by President Obama on December 17 of this year:

Tax Relief Act of 2010 passed by Congress (by Schottenstein Zox & Dunn Co., LPA):

“The Tax Relief Act provides extensive tax relief for taxpayers at all
income levels. Estimated to cost $858 billion, the Act includes a
two-year extension of the Bush-era tax cuts, an extension of the
alternative minimum tax (AMT) patch, a temporary payroll tax reduction,
restoration of the estate tax for individuals with estates in excess of
$5 million and extensions of several other tax breaks…” Read more>>

2010 Tax Relief Act (by Thompson Coburn LLP):

“The Act, which only covers years 2010 through 2012, contains a wide
variety of income and other tax-related provisions. Included here is a brief
summary of the gift, estate and generation-skipping transfer (GST) tax
provisions followed by a few planning considerations, some of which
need to be implemented no later than December 31, 2010
…” Read more>>

President Signs Tax Relief, Unemployment Insurance Reauthorization and Jobs Creation Act of 2010 (by Luce Forward):

In this 11-page alert: “Individual Tax Rate Provisions; Alternative Minimum Tax Relief;
Individual Deductions and Credits; Education Benefits; Stock/Bond
Provisions; Disaster/Economic Development Incentives; Estate and Gift
Tax Provisions; Business Incentives; Social Security Tax Cut; Energy
Incentives; Business Tax Relief; and, GO Zone Disaster Relief…” Read more>>

Tax Relief and Job Creation Act Becomes Law (by Dinsmore & Shohl LLP):

“For businesses, the 2010 Tax Act increases bonus depreciation to 100
percent, allowing the immediate deduction of all investment, for
qualified investments (generally, machinery, equipment and furniture,
computer software and certain leasehold improvements) made after
September 8, 2010 and before January 1, 2012, and permits 50 percent
bonus depreciation for qualified property placed in service during
calendar year 2012…” Read more>>

President Signs the 2010 Tax Relief Act Giving Taxpayers a Measure of Tax Certainty (by Manatt Phelps):

“The 2010 Tax Relief Act provides much-needed certainty for individual and business tax planning over the next two years. In theory, it should inject billions of dollars into the U.S. economy…” Read more>>
  
Significant Modifications Made to the Federal Estate & Gift Tax (by Fox Rothschild):

“The exclusion from estate tax is increased to $5 million and is further
indexed for inflation for decedents dying after 2011. The maximum
federal estate tax rate as well as the generation skipping transfer tax
rate are each set at 35 percent. The gift tax continues to remain in
effect with the applicable exclusion remaining at $1 million per
individual for taxable gifts made during 2010 and subject to a 35
percent rate. For gifts made after 2010…” Read more>>

How the New Estate Tax Law Affects You and Your Estate Plan (by Darlynn Morgan):

“Well for many of my clients, it means business as usual. The folks worth over $10 million have historically planned for estate taxes, as their net worth has always pushed them over the Bush-era exemption level. So nothing changes there. And of course anyone with a net worth under $5 million (or $10 million for couples) can now rest easy knowing they will legally escape the grasp of Uncle Sam should they pass away over the next two years. Yet what’s important to remember is that this new tax law is not permanent…” Read more>>

Extension on 100% Tax Exemption for Gain on Certain Qualified Small Business Stock (by Foley Hoag LLP):

“The 2010 Tax Relief Act extends a tax benefit whereby gains from the
sale of certain qualified small business stock (“QSBS”) can qualify for
a total exclusion from federal income taxation. This tax benefit was
set to expire on December 31, 2010. The new law would extend the
benefit to stock acquired from qualifying issuing corporations after
September 27, 2010 and on or before December 31, 2011, provided certain
holding and other requirements are satisfied. Under the extension…” Read more>>

Payroll Changes Require Immediate Action as Result of New Tax Package (by Partridge Snow & Hahn LLP):

“The Act provides a two percentage point payroll tax cut for employees,
reducing their Social Security tax withholding rate from 6.2 percent to
4.2 percent of wages paid. This reduced Social Security withholding
will have no effect on the employee’s future Social Security benefits…” Read more>>

President Obama Signs 2010 Tax Relief Act (by Morrison & Foerster):

“The Act extends the Bush era tax rates for individuals. In addition to
extending favorable rates, it also has some important business
incentive provisions that our clients should be aware of. Finally, the
Act includes temporary modifications to the estate, gift and
generation-skipping transfer tax rules. This Client Alert summarizes
the key provisions…” Read more>>

Also see earlier alerts:

Tax Relief Act Has Small Bus Investment Incentive (Sanford Millar)
Extension of the Bush Tax Cuts (Venable LLP)
Details of New Tax Bill Beginning to Emerge (Luce Forward)


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