Estates in 2010 have two options

Estates in 2010 have two options

Since the estate tax was technically repealed at the start of 2010 as a result of a sunset provision within EGTRRA, planning has been challenging due to uncertainty around potential legislative changes that would impose different rules. The signing of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. into law in

College savings tax credits extended

College savings tax credits extended

Several tax credits for investors saving for college were extended for two years in the passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The contribution limit for the Coverdell Education Savings Account program, which was scheduled to revert to $500, was maintained at $2,000 and extended through 2012. Depending

Tax cuts extended for two years

Tax cuts extended for two years

The recent signing into law of H.R. 4853 — the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 — represents the most significant tax law in a decade. At a cost of $858 billion, it represents a tremendous investment at a time when the nation’s economic recovery is fragile. In addition to

Do your clients know about the AMT?

Do your clients know about the AMT?

The Alternative Minimum Tax (AMT) will affect an additional 27 million taxpayers in 2010 if Congress fails to act and amend the income guidelines by the end of the year. Asking your clients if they have consulted with a tax preparer about the possible impact of the AMT provides an opportunity for you to discuss

Roth IRA conversion strategy for business owners

Roth IRA conversion strategy for business owners

When discussing a possible Roth IRA conversion with clients, typically the primary barrier is identifying funds to pay the tax bill. Clients understand the benefits that a tax–free Roth can provide in retirement and to potential heirs, but are challenged by reporting additional income generated from a conversion. Using business–related tax losses to offset a

Meet the challenge of rising taxes by diversifying assets’ tax status

Meet the challenge of rising taxes by diversifying assets’ tax status

Many financial advisors are successfully putting a new twist on the traditional asset allocation review. With Baby Boomer clients heading toward retirement and the prospect of higher tax rates imminent, it is increasingly important that clients’ assets are diversified from a tax perspective, in addition to the traditional asset allocation perspective. For many clients, the

Big tax changes may be on the way

Big tax changes may be on the way

Sweeping tax legislation enacted under George W. Bush is set to expire at the end of 2010. The ramifications for savers and investors are significant, including higher or reinstated taxes across the tax code. Congress has the remainder of 2010 to agree on legislation that would extend some or all of the Bush–era tax cuts,