Tax Increase Prevention and Reconciliation Act of 2005

[Brad Imsdahl]

With a 244 to 185 margin in the House, and a 54 to 44 margin in the Senate, Congress has approved H.R. 4297, the Tax Increase Prevention and Reconciliation Act of 2005. The President is expected to sign the bill shortly. The new law extends for two more years the 15% and 5% tax rates on qualified dividend and capital gains, extends for two more years the $100,000 Section 179 expense limit, gives taxpayers some relief from the alternative minimum tax, allows high income taxpayers to do a Roth conversion, and other provisions.

We are currently working on the coverage of this new tax law, which will be included in the 2006 tax year edition of TheTaxBook. This coverage will be posted on the updates page sometime in the next few days when it is complete. For those who have signed up for “Updates In Your Inbox,” an email notification will be sent as soon as this coverage is posted to the updates page.

[Unregistered]

One other big change is the kiddie tax was extended to include children upto to age 18 as opposed to the current upto 14.

New York Enrolled Agent

[JoshinNC]

Roth rule is delayed

wouldn't take effect until 2010 (in other words, never)

[veritas]

One other big change is the kiddie tax was extended to include children upto to age 18 as opposed to the current upto 14.

New York Enrolled Agent

Ouch! Way to go you frugal spending, border protecting, tax cutting republicans.

[JoshinNC]

Hey, I resemble that remark!

Actually, there are those of us in the party who actually still believe in fiscal conservatism, protectionist isolationism and the American dream. We just have a hard time expressing our believes when our leadership is hijacked by the elitist wing of the party!

[veritas]

Did I forget to mention thanks for making goverment smaller?

[jainen]

Special thanks

Special thanks for reducing our tax burdens by massive borrowing from the Asian communists instead of making Americans pay for everything ourselves through taxation.

[OldJack]

Special thanks for reducing our tax burdens by massive borrowing from the Asian communists instead of making Americans pay for everything ourselves through taxation.

Not to fret they are just returning the money we gave them in the first place.

[Bees Knees]

5/17/2006

The President just signed the bill into law today. You can read a detailed summary of the law at http://waysandmeans.house.gov/media/...ummary4297.pdf

[Brad Imsdahl]

We have now posted our coverage of the new law on our updates page:

http://www.thetaxbook.com/updates_view.asp?ID=50

[Unregistered]

New Tax Law

Why Not Go Back To The Old Way Of Reporting The Updates?? I Really Do Not Have The Time Or Energy To
Print Out 13 Pages Of Gobblygook And Then Try To Figure
Out What Changes Need To Be Made In The Book. If This Way Is Going To Continue You Can Count Me Out Of Ever Renewing My Subscription.

[Brad Imsdahl]

Why Not Go Back To The Old Way Of Reporting The Updates?? I Really Do Not Have The Time Or Energy To
Print Out 13 Pages Of Gobblygook And Then Try To Figure
Out What Changes Need To Be Made In The Book. If This Way Is Going To Continue You Can Count Me Out Of Ever Renewing My Subscription.

Nothing in your 2005 Tax Year Edition needs to be updated. All of the changes affect the 2006 tax year and beyond. We used the 2005 Tax Year Edition page references to help you see what rules will be changed in the 2006 Tax Year Edition. I am sorry if you miss-understood the purpose of providing you with this information.