The recently enacted 2012 American Taxpayer Relief Act includes a wide-ranging assortment of tax changes affecting both individuals and business. The sweeping tax package includes, among many other items, permanent extension of the Bush-era tax cuts for most taxpayers, revised tax rates on ordinary and capital gain income for high-income individuals, modification of the estate tax, permanent relief from the alternative minimum tax (AMT) for individual taxpayers, limits on the deductions and exemptions of high-income individuals, and a host of retroactively resuscitated and extended tax breaks for individual and businesses. Here’s a look at the key elements of the package:

  • Tax rates.
  • Estate tax.
  • Capital gains and qualified dividends rates.
  • Personal exemption phaseout.
  • Itemized deduction limitation.
  • AMT relief.
  • Tax credits for low to middle wage earners.
  • Section 179 expensing.
  • Additional first-year (bonus) depreciation.
  • Tax break extenders.
  • Pension provision.
  • Energy-related tax breaks.
  • Payroll tax cut is no more.

We hope this information is helpful. If you would like more details about these provisions or any other aspect of the new law, please do not hesitate to call.