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New Estate Taxes: Is your plan current? 
As the year end approaches, Congress has certain tax laws that are set to expire or change. For 2009, the estate tax exemption is $3.5 million and the estate tax rate is 45% on amounts over that threshold. The estate tax is scheduled to be repealed for 2010 and reappear in 2011 with an estate exemption of $1 million and an estate tax rate of 55%. Our guess is that Congress will likely act before the end of the year to extend the 2009 exemption and tax rate into 2010. It is anyone's guess whether Congress will do anything to amend the exemption amount and tax rate for 2011 but if Congress remains under Democratic control, the 2011 numbers could well remain in place. This means estate planning is as important as ever right now as most estates of middle class families will be exposed to large tax hits on amounts over $1 million. Click here to learn more about Wills and Trusts. |
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Low Cost Employee Perks 
Studies show that half of all employed Americans do not use all of their vacation time and wind up forfeiting earned time at year's end. The IRS has issued revenue rulings stating employers may allow employees to transfer the value of their unused vacation time to their 401(k) or other qualified retirement plan. The plan must be amended by the employer to allow such contributions, but to the extent vacation time is accounted for as an expense, employers may want to amend their 401(k) and other plans to permit employees to contribute unused vacation time annually or at termination. These options can be advertised to employees as perks - in an economy where perks are hard to come by. Click here to learn more about Employment Compensation Issues. |
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Real Estate: A good time to buy? 
We are living in a once-in-a-lifetime period for first time home buyers. The severe down market in home prices coupled with low mortgage interest rates the federal first time home buyer credit of $8,000.00 means the time will never be better for people to buy their first home. The buyers' credit is set to expire in November but Congress will likely extend the credit for at least a few months. A first time buyer does not have to close on the purchase of a home before the law expires, the real estate contract simply has to be fully executed before the law expires. |
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Employer Alert: Orders of Protection 
On January 1, 2010, an amendment will take effect under the Illinois Human Rights Act whereby "order of protection status" will be added as a class of discrimination from which individuals will be protected in addition to race, color, religion, sex, national origin age, ancestry, marital status, physical/mental disability, military status sexual orientation and unfavorable discharge from military service. It will be unlawful for any employer with 15 or more employees to take adverse action (such as suspension, termination, write-up, etc.) against an employee on the basis that such employee is protected under an order of protection. Click here to learn more about Employer Compliance Issues. |
