Tax Relief Act of 2010 Extends Breaks for Individuals and Businesses
 

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, signed into law December 17, 2010, extends and expands a wide variety of valuable tax breaks and includes tax provisions affecting individuals and businesses. 

Many breaks are subject to a variety of rules and limitations, so it’s important to discuss them with your Yeo & Yeo tax advisor to determine exactly how they’ll affect you.

Some of the provisions include:

• New 2% payroll tax cut for 2011
• Extension of the lower ordinary income tax rates for all tax brackets through 2012
• Extension of the $1,000 child credit and other enhancements of the credit through 2012
• Decrease in the top estate and gift tax rates and the GST tax rate to 35% for 2011 and 2012
• Increase in the estate, GST and gift tax exemptions to $5 million for 2011, indexed for inflation in 2012
• Extension of 50% bonus depreciation, generally for new assets placed in service Jan. 1, 2012, through Dec. 31, 2012
• Increase in the Sec. 179 expensing limit to $125,000 (indexed for inflation) for 2012

Download a summary of the most important provisions. Several charts at the end of the document show individual, business and estate planning provisions.