BCG&Co. understands the time demands of your work and life. Weare here to helpyou disseminate high-interest, current coverage of matters related to our profession. If you have comments or feedback of any kind please contact us via or phone (330) 864-6661.
President Obama's Tax Proposals From AICPA Tax News
President Obamas FY2011 Budget includes a list of tax proposals that will impact individuals and businesses. Several proposals will appear familiar as they are just extensions from last years stimulus legislation while others are revisits to past proposals. Congress will shortly begin to review these proposals and probably add some of its own to this list. Following is a partial listing separated by whether they are tax reduction or tax increase proposals.
Business Proposals
Tax Reductions:
Extend Section 179 expensing limit of $250,000 one more year
Extend 50% Bonus Depreciation one more year
Remove cell phones and other similar devices from the definition of Listed Property
Make the R&E credit permanent
Extend COBRA Subsidy payments until Jan. 1, 2011
Create a new Jobs Tax credit for hiring new employees
Tax Increases:
Tax Carried Interest as ordinary income
Repeal Last in First Out (LIFO) inventory accounting method
Repeal lower of cost or market inventory accounting method
Codify the Economic Substance Doctrine
Institute International Tax Reforms
Rewrite the definition of Independent Contractor
Individual Proposals
Tax Reductions:
Extend AMT indexation permanently
Extend Making Work Pay Credit for one year
Extend Education Tax Credits permanently
Extend Energy Tax Credits for one more year
Extend Economic Recovery Payment for one moreyear
Tax Increases:
Allow 2001 Tax Rates to expire and continue current rates for taxpayers below $250,000 but increase rates for those above
Reinstate 3% limitation on itemized deductions and on personal exemptions
Limit the tax benefit of itemized deductions to 28%
Increase Capital Gains Rates to 20% for those with incomes above $250,000, keep 15% rate for those below
Estate Taxes- The Presidents budget presumes that the 2009 estate tax rates and exemption levels will be reinstated for 2010 and 2011. It also proposes changes in valuation rules by limiting valuation discounts for minority interests and tightening rules on the use of grantor retained annuity trusts (GRATs).
In addition to these the list of expiring provisions proposed by the House of Representatives in December, would be extended for one year. The full FY 2011 Budget Proposal is available at the Department Of Treasury.
For more details click on the links or call your BCG&Co. tax advisor. (330) 864-6661.
