On Dec. 17 the president signed the “Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010” into law. This new legislation includes a slew of tax breaks across-the-board.
Alert: For starters, the new tax law extends the “Bush tax cuts” for capital gains and dividends as well as numerous provisions in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) that were scheduled to “sunset” after 2010. It also provides alternative minimum tax (AMT) relief to individuals, creates a one-year payroll tax “holiday” and enhances write-offs for business equipment.
Finally, the new tax law resolves the current estate tax uncertainty, at least for the short term. It increases the estate tax exemption to $5 million and lowers the top estate tax rate to 35% for a two-year period.
There are plenty of income tax tax-saving opportunities to go around. Here’s the skinny on the top 20.