Monthly Archives : December 2010

New Tax Law Extends or Reinstates Certain Tax Provisions

New Tax Law Extends or Reinstates Certain Tax Provisions

President Obama has signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.  Among the significant provisions are:

 Two-year extension of all 2001 and 2003 tax cuts

 Two-year adjustment of the estate tax with a $5 million individual exemption.   For a decedent dying in 2010, the Executor may elect carryover basis or utilization of the $5 million exemption.

 Two-year retroactive extension of the IRA Charitable Rollover.  This provision allows any eligible gifts made by January 31, 2011 to be treated as a 2010 donation and be used to satisfy the taxpayer’s minimum distribution requirement for 2010.  The new expiration date for the Charitable Rollover is December 31, 2011.

 A detailed summary of the new law can be found at http://www.pppnet.org/pdf/Summary_12-14-10.pdf.