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.