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Greetings!
It's been a trying year for many individuals and small business owners, but things may be looking up!
Just last Friday, President Barack Obama signed into law an $858 billion tax package that extends Bush-era tax cuts for two more years. The measure includes a one-year cut in Social Security payroll taxes and continues unemployment benefits for 13 months. To read more, click here.
That means estate planning will be easier for the next two years, because estate-tax provisions in that bill include a $5 million exclusion and a top estate tax rate of 35%. To read more about estate planning and how it relates to the new tax package, click here.
What's more, the passage of the tax bill last week gives wealthy taxpayers options for retirement funding, namely because the current tax rates on income will stay the same. If they convert a regular IRA to a Roth by the end of the year they will not have to report all of the additional income from the conversion on this year's return. To read more on IRA conversions and how they relate to the new tax bill, click here. Have a wonderful holiday and a happy new year! |
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Sincerely,
Wrobel Accounting
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