{"id":1315,"date":"2013-01-02T12:47:02","date_gmt":"2013-01-02T17:47:02","guid":{"rendered":"http:\/\/www.patellawoffices.com\/blog\/?p=818"},"modified":"2013-01-02T12:47:02","modified_gmt":"2013-01-02T17:47:02","slug":"off-the-cliff-commentary-about-the-new-2013-tax-law","status":"publish","type":"post","link":"https:\/\/patellawoffices.com\/blog\/planning-for-tax-minimization\/off-the-cliff-commentary-about-the-new-2013-tax-law\/","title":{"rendered":"Off the Cliff Commentary About the New 2013 Tax Law"},"content":{"rendered":"<p>As predicted, Congress waited until the last minute to make a deal, technically after we plunged off the fiscal cliff to pass a new tax law. The new 2013 tax law, in summary, is below with some of our commentary:<\/p>\n<ul>\n<li>Raise the marginal tax rate to 39.6% on income over $450,000 (joint) and $400,000 (single).<\/li>\n<li>Raise the tax rate on dividends and long term capital gains to 20% on taxpayers with income over $450,000 (joint) and $400,000 (single).\u00a0 The top rate would remain 15% for taxpayers with lower incomes.<\/li>\n<li>Estate and gift tax:\u00a0 $5 million exemption (inflation-adjusted) and 40% rate (up from 35 percent). \u00a0The estate (and still linked gift tax lifetime) exemptions will remain at $5 million, but larger estates will pay more estate tax due to the rate increase.<\/li>\n<li>Permanent and retroactive patch for the AMT. \u00a0If we have to have an AMT, then it makes sense to adjust it for inflation like the rest of the income tax.<\/li>\n<li>Return of the exemption and itemized deduction phase-outs.\u00a0This reinstates the phase-out of itemized deductions and personal exemptions for couples with incomes over $250,000 ($200,000 for singles), which is a small, progressive \u00a0tax increase, but it is also a complex way to add about 1 percentage point to tax rates in that income range.<\/li>\n<li>One-year extension of 50% bonus depreciation.<\/li>\n<li>Payroll taxes will go up by 2% due to the expiration of the payroll cut for economic stimulus. Apparently the economy no longer needs such stimulus.<\/li>\n<li>Extension of various tax extenders, including\u00a0Child Tax Credit, Earned Income Tax Credit, American Opportunity Tax Credit, and renewable energy incentives.<\/li>\n<\/ul>\n<p>Stay tuned! \u00a0Our law firm is carefully monitoring developments and the opportunities available for our clients.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As predicted, Congress waited until the last minute to make a deal, technically after we plunged off the fiscal cliff to pass a new tax law. The new 2013 tax law, in summary, is below with some of our commentary: Raise the marginal tax rate to 39.6% on income over $450,000 (joint) and $400,000 (single). [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_daextam_enable_autolinks":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1315","post","type-post","status-publish","format-standard","hentry","category-planning-for-tax-minimization"],"_links":{"self":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/1315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/comments?post=1315"}],"version-history":[{"count":0,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/1315\/revisions"}],"wp:attachment":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/media?parent=1315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/categories?post=1315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/tags?post=1315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}