BOSTON, MA, January 28, 2013 (Press-News.org) Fiscal Cliff - HR8
The American Taxpayer Relief Act of 2012
Congratulations to all of you who took full advantage of what was the expiring gift giving exemption of $5.12 million, sold assets and accelerated income before the end of 2012. The months of November and December simply were unprecedented.
President Obama's re-election, together with congressional gridlock, made year-end planning critical. New techniques and terms, such as SLATs (Spousal Limited Access Trusts) and IDIGTs (Intentionally Defective Irrevocable Grantor Trusts), Private Life Annuities and Self-Cancelling Notes all became buzz words. The American Taxpayer Relief Act does little to change the planning.
Let me summarize the Act and make some observations.
Income Tax Rates:
The top income tax bracket rises to 39.6% (from 35%) for individuals with taxable income in excess of $400,000 and for married couples in excess of $450,000.
Capital Gains and Dividends:
The top income tax bracket for capital gains and dividends rises to 20% (from 15%) for individuals with taxable income in excess of $400,000 and for married couples in excess of $450,000.
Alternative Minimum Tax:
Permanently solves (at least in theory) the AMT problem by indexing the AMT exemption amounts for inflation. The AMT exemption amount for 2012 is $78,750 for married couples and $50,600 for individuals.
Itemized Deductions:
A phase out of itemized deductions applies for 2013 for individuals who have an adjusted gross income of $250,000, and married couples with an adjusted gross income of $300,000.
Estate, Generation Skipping, and Gift Tax:
Transfers subject to the estate, generation skipping, and gift taxes will be subject to a top rate of 40% with an exemption amount of $5 million per person to be indexed for inflation.
Observations:
The new $400,000 and $450,000 income tax brackets are virtually identical to the brackets previously scheduled for 2013 which had been indexed for inflation years ago.
Obamacare Tax:
The new capital gain and dividend tax rates are in addition to the 3.8% Obamacare tax on passive income for taxpayers who have taxable income over $250,000 so that the new top rate will be 23.8% on passive income.
Payroll Taxes:
Every American will see less money in his or her paycheck starting this week since payroll taxes were allowed to increase from 4.2% to 6.2% and high income individuals also will be subject to a new 0.9% Medicare tax on earned income.
Planning for 2013:
Those who did not take advantage of gift giving in 2012 should consider it in 2013 using discounted assets, such as non-voting shares in businesses and conservatively valued real estate.
For those of you who took advantage of the gift giving opportunity in 2012, it is now time to leverage the gift by selling "hard to value" assets to the trust and/or borrowing and/or purchasing assets from the trust in exchange for promissory notes.
Keeping You Updated:
We are only now beginning to analyze the new legislation, so watch for more details and visit our website: http://www.cushingdolan.com/
Happy New Year from the Boston Tax Lawyers at Cushing & Dolan
As we begin 2013, I would like to thank you all for your support, wish you a happy new year, and keep you updated.
2013-01-28
ELSE PRESS RELEASES FROM THIS DATE:
Chicago Family Law Attorney, Gary L. Schlesinger to be Honored at Lake County Bar Association's Biennial President's Award Dinner
2013-01-28
Illinois family law and divorce law firm Schlesinger & Strauss, LLC is proud to announce firm founder Gary L. Schlesinger will be honored at the Lake County Bar Association's biennial President's dinner next month. Mr. Schlesinger will receive the Lifetime Achievement Award. The event will be held at the Lincolnshire Marriot Resort in Lincolnshire, Illinois.
Gary Schlesinger
Mr. Schlesinger started practicing over 41 years ago, and devotes his practice exclusively to family law matters including divorce, alimony, child custody and support, paternity, and adoption ...
Two Marines Moving Earns Esteemed 2012 Angie's List Super Service Award
2013-01-28
Two Marines Moving has earned the service industry's coveted 2012 Angie's List Super Service Award, an honor awarded annually to approximately 5 percent of all the companies rated on Angie's List, the nation's leading provider of consumer reviews on local service companies.
"We're quite honored to accept the Super Service Award from Angie's List for the 4th consecutive year," said Nick Baucom, Founder & President. "We are a company comprised of individuals that collectively seek to be the best at what we do. The Marine in me thinks second best is never ...
Fantasy Basketball Money Leagues & NBA Rumors Launches Website That Provides Fantasy Basketball and Player Updates to Help Fantasy Owners win Their Leagues
2013-01-28
Fantasy sports have been around for decades now, and the NBA is one of the fastest growing sports worldwide. Fantasy Basketball Money Leagues is here to help fans keep up with up to the minute NBA Rumors and news, along with giving inside tips on how to get ahead in fantasy basketball leagues.
Follow our news and updates via:
Twitter: @NBAFantasyInfo
Facebook: http://www.facebook.com/fantasybasketballmoneyleagues
RSS: http://www.fantasybasketballmoneyleagues.com/feed/Our offices are located in Farmington Hills, Michigan. The website launched in November, 2012 ...
Plot Your Year Ahead with the Unique London 2013 Annual
2013-01-28
If you thought there might be a post-Olympic hangover in London, the LondonTown.com guide to 2013 will soon put you right. In the year after hosting the biggest show on earth, London has a huge wealth of arts, entertainment and cultural events, sporting fixtures and new openings to keep visitors happy in 2013. Travellers arriving from outside London can conveniently book their accommodation on LondonTown.com, where there's a wide range of London hotels available to book, including hotels to suit all budgets.
In his introductory article to this new ground-breaking 244-page ...
Transit and Transporter Battle for Top-Used Van Choice Honours in 2012
2013-01-28
The latest research by Van Trader, the UK's leading used van marketplace, shows that the most searched van in 2012 was the Ford Transit, just ahead of the Volkswagen Transporter. There were a total of 1.55 million searches for the Transit and 1.53 million for the Transporter, well ahead of the third-placed Mercedes-Benz Sprinter at 765,651. During 2012 the Van Trader website attracted a total of 32 million searches and unique visits increased by 15% when compared with 2011, up to 7.24 million.
Top Ten used van searches in 2012
1. Ford Transit 1,552,509
2. Volkswagen ...
EFMD & GMAC to Hold Global MBA Directors Conference at IMD
2013-01-28
The conference will explore the role of the Programme Director under the theme "Leading the MBA: The Good, the Bad & the Ugly" and will include a tailor made case "The MBA Director's Dilemma" that will address some of the key challenges encountered by Programme Directors.
"The role of the MBA Director has never been more important and balancing a mix of leading, coaching & inspiring with carrots, sticks and humility is not easy," said Prof. Eric Cornuel, the CEO and director general of EFMD. "We are delighted to be working ...
Property Division for Texas Couples Going Through a Divorce
2013-01-27
Property division for Texas couples going through a divorce
Texas is a community property state, and, as such, all property acquired during the marriage, which is defined as "marital property," is divided equally between both spouses as a matter of law. That said, Texas is a unique type of community property state.
In Texas, the judiciary has discretion when it comes to dividing up property; a judge can divide marital property in a "just and right" fashion, which means it can be divided in a manner that the judge sees as optimal.
Difference ...
High Tech Playground Announces the Release of Playground Reader
2013-01-27
High Tech Playground is very excited to announce the release of Playground Reader mobile app. Playground Reader is an innovative, easy-to-use, interactive children's e-books reader and bookstore. With the release of the app, High Tech Playground is continuing on its mission to bring gaming, education and entertainment together onto mobile platform.
With the Playground Reader, our goal is to deliver safe for kids, high quality interactive children's books, while catalyzing the joy of reading, igniting children's imagination, and fostering learning. Playground Reader's ...
Roger Dubuis Appoints Jean-Sebastien Berland as Regional Brand Director
2013-01-27
Roger Dubuis, leading Swiss manufacturer of luxury watches with a unique elan and style, have announced the appointment of Jean-Sebastien Berland as Regional Brand Director for the Middle East and India. Mr. Berland, who was formerly Managing Director of the brand's North East Asian operations, brings with him years of experience in the luxury goods industry and is set to drive the Swiss brand's growth further in these fast-developing markets.
Mr. Berland, a Business Administration graduate from Paris, joined leading luxury goods group Richemont after initially gaining ...
Olive Tree Initiative to Host Israeli Dr. Gershon Baskin Responsible for Israeli Soldier Gilead Schalit Release
2013-01-27
The speaker series will bring speakers to UC Irvine who have been involved with the peace process to talk about "20 Years After the Oslo Peace Accords (1993-2013) - What Happened to Peace in the Middle East?" The event will be co-sponsored by the Center for Citizen Peacebuilding and International Studies.
Dr.Baskin is the former Israeli Co-Director and founder of the Israel/Palestinian Center for Research and information (IPCRI) - a joint Israeli-Palestinian public policy think and "do"-tank located in Jerusalem. Dr. Baskin was the lead initiator ...
LAST 30 PRESS RELEASES:
New research boosts future whooping cough vaccines
Mechanistic understanding could enable better fast-charging batteries
No bones about it: new details about skeletal cell aging revealed
UNM scientists discover how nanoparticles of toxic metal used in MRI scans infiltrate human tissue
UMaine research examines best methods for growing Atlantic sea scallops
Medical cannabis could speed recovery, especially at community recovery homes
Study assesses U.S. image amid weakening of democracy
Two scientific researchers to receive 2025 Ralph L. Sacco Scholarships for Brain Health
Researchers improve chemical reaction that underpins products from foods to fuels
Texas Tech to develop semiconductor power devices through $6 million grant
Novel genomic screening tool enables precision reverse-engineering of genetic programming in cells
Hot Schrödinger cat states created
How cells repair their power plants
Oxygen is running low in inland waters—and humans are to blame
ACP’s Best Practice Advice addresses use of cannabis, cannabinoids for chronic noncancer pain
Beyond photorespiration: A systematic approach to unlocking enhanced plant productivity
How a small number of mutations can fuel outbreaks of western equine encephalitis virus
Exposure to wildfire smoke linked with worsening mental health conditions
Research uncovers hidden spread of one of the most common hospital-associated infections
Many older adults send their doctors portal messages, but who pays?
Fine particulate matter from 2020 California wildfires and mental health–related emergency department visits
Gender inequity in institutional leadership roles in US academic medical centers
Pancreatic cells ‘remember’ epigenetic precancerous marks without genetic sequence mutations
Rare combination of ovarian tumors found in one patient
AI-driven clinical recommendations may aid physician decision making to improve quality of care
Artificial intelligence has potential to aid physician decisions during virtual urgent care
ACP and Annals of Internal Medicine present breaking scientific news at ACP’s Internal Medicine Meeting 2025
New study reveals polymers with flawed fillers boost heat transfer in plastics
Signs identified that precede sudden arrhythmic death syndrome in young people
Discovery of bacteria's defence against viruses becomes a piece of the puzzle against resistance
[Press-News.org] Happy New Year from the Boston Tax Lawyers at Cushing & DolanAs we begin 2013, I would like to thank you all for your support, wish you a happy new year, and keep you updated.