New Tax Law Signed into existance Dec 18

[dyne]

New Extenders Tax Law:
I found H R 4853 which is labeled Tax RElief Unemployment Insurance Reauthorization and Job Creation
Act of 2010. SOME of the more interesting new provisions of this new law are:
1. Child Credit of $1,000 is allowed for children under age 17.
2. Teachers $250 deduction is extended or reinstated.
3. Tuition deduction of up to $4,000 is reinstated.
4. The American Opportunity education credit of up to $2,500 is reinstated.
5. The local sales tax deduction is reinstated.
6. An AMT patch has been enacted for 2010 ONLY.
7. The 0% capital gain and dividend rate has been reinstated.
8. Unemployment benefits have been extended for 13 months.
9. The payroll tax upon employees has been reduced from 6.2% to 4.2% for 2011 ONLY!
10. The Making Work Pay Credit expires after 2010.
11. An heir who inherited a house from a decedent who died during 2010 may
elect use 2011 rules and claim a stepped basis.
12, The ENERGY CREDIT for storm windows, etc.is extended but with a $500 lifetime
credit limit.

Most of these extended laws are in affect through 2012.

There are MANY more tax changes and business credits.
I have listed only those which I expect to receive telephone calls about.

There is MUCH more to come.

[solomon]

This is the enrolled version which was signed into law.

http://www.gpo.gov/fdsys/pkg/BILLS-111hr4853enr/pdf/BILLS-111hr4853enr.pdf

[dtlee]

I have been looking for details of the new tax law and found it difficult to find.
I found H R 4853 which is labeled Airport and Airway Extension Act of 2010,
part III which I BELIEVE is the new law. SOME of the new provisions of this new law are:
1. Child Credit of $1,000 is allowed for children under age 17.
2. Teachers $250 deduction is extended or reinstated.
3. Tuition deduction of up to $4,000 is reinstated.
4. The American Opportunity education credit of up to $2,500 is reinstated.
5. The local sales tax deduction is reinstated.
6. An AMT patch has been enacted for 2010 ONLY.
7. The 0% capital gain and dividend rate has been reinstated.
8. Unemployment benefits have been extended for 13 months.
9. The payroll tax upon employees has been reduced from 6.2% to 4.2% for 2011 ONLY!
10. The Making Work Pay Credit expires after 2010.
11. An heir who inherited a house from a decedent who died during 2010 may
elect use 2011 rules and claim a stepped basis.
12, The ENERGY CREDIT for storm windows, etc.is extended but with a $500 lifetime
credit limit.

Most of these extended laws are in affect through 2012.

There are MANY more tax changes and business credits.
I have listed only those which interest me at the moment.
This is preliminary and subject to expansion and correction. I expect more details
to be announced soon.

I posted this link on the forum a couple of days ago:

http://tax.cchgroup.com/downloads/files/pdfs/legislation/bush-taxcuts.pdf

Does this help?

[Davc]

The AMT patch is for 2010 and 2011.

[OtisMozzetti]

...
11. An heir who inherited a house from a decedent who died during 2010 may
elect use 2011 rules and claim a stepped basis.
...

The election to use 2011 estate tax rules will have to be made by the executor of the estate not by the individual beneficiaries. It would not be feasible for one or more among the beneficiaries (heirs) to decide to go onto the new $5 million, 35% estate tax program while one or more of the other beneficiaries (heirs) did not elect to do so.

[Uncle Sam]

New Tax Law

What about the $ 500 per taxpayer additional standard deduction for non-itemizers for real estate taxes?

[dtlee]

According to the document in the link I posted:

Th e 2010 Tax Relief Act
does not extend the additional standard
deduction for real property taxes, which
expired at the end of 2009.