•The new health care law has changed the Part B exemption from $180,000 to $200,000 for a married couple.
•The estate tax has returned for 2011.
•The Energy Savings tax credit fell from 30% to 10% and the ceiling to just $500.
BUSINESS
•There is a 100% bonus depreciation on assets for 2011. There are some restrictions on this.
•The Bush tax cuts remain in effect for the next two years.
DECEMBER 2010
INDIVIDUAL
•If you are going to buy stock in a small firm, do so before December 31, 2010. You will not have to pay tax on a future sale on the gain. This will disappear in 2011.
•Gift tax exclusions for 2010 are still a good source of deductions.
•Don’t forget to use college savings plans to help your children and grandchildren and provide you with a good deduction.
•Energy Savings Improvement deductions will disappear after December 31, 2010. Must be
installed by then.
BUSINESS
•The expanded 1099 enacted recently will go away in the next few months.
•Be sure to report to the IRS on your firm’s stock options exercised in 2010 and also for employee stock purchase plans.
NOVEMBER 2010
INDIVIDUAL
•If you are going to buy stock in a small firm (<$50M), you should do it before December 31, 2010. This will avoid a gain on the sale of that stock in the future.
•If you are seventy and a half years old or older (70 1/2), don’t forget to take the required payout from your IRA’s before the end of the year.
•Even though there is no estate tax for 2010, there still is the gift tax to deal with. The estate tax is coming back in 2011 so doing a little giving now can help your estate in the future.
BUSINESS
•Buying a business vehicle in 2010 has some good tax advantages. First year depreciation will be a maximum of $11,060. This will drop off to $3,000 in 2011.
•Reporting the value of health coverage on W-2’s does not start until tax year 2011.
•Tax-free per diem for meals, lodging and incidentals is lower this year. Check on the amount.
•Some income and expenses can be postponed to 2011 for the business owner.
