01/14/2013
The "Fiscal Cliff" has been averted as Congress passed the American Taxpayer Relief Act of 2012 on January 1, 2013. The Act allows the Bush-era tax rates to sunset after 2012 generally for individuals with income over $400,000 and families with incomes over $450,000, permanently "patches" the alternative minimum tax (AMT), revives many now-expired tax extenders, including the research tax credit and the American Opportunity Tax Credit, and provides for a maximum estate tax rate of 40 percent with a $5 million exclusion, as adjusted for inflation. In addition to an extension for most taxpayers of the lower individual income and capital gains tax rates, marriage penalty relief and more than 50 other tax benefits popularly referred to as the "Bush Tax Cuts," the legislation makes over 100 changes to the Internal Revenue Code. Highlights of the American Taxpayer Relief Act of 2012 include: 39.6% tax rate for incomes above $400,000 ($450,000 for families) 20% Maximum Ca
pital Gains/Dividend Tax Rate All other Bush-Era Tax Rates extended Permanent AMT Patch Five-Year Extension of American Opportunity Tax Credit Two-Year Extension of Business Tax Extenders And more!
