Member Article

On Friday December 17, 2010, the President signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “Act”). Many taxpayers were keeping an eye on this legislation because of the possible impact it might have on year-end tax planning. Specifically, taxpayers were keen to find out if certain favorable tax laws would be extended. Many of the tax laws that were scheduled to sunset were extended for an additional two years.

This alert provides highlights from the Act worth noting. To read the full alert, follow the link to the Haynes and Boone website and click on the PDF linked at the bottom of the page.

Topics include:

• Extension of Bush Tax Cuts
• Qualified Dividends
• Adjusted Net Capital Gain Tax Rate
• Qualified Small Business Stock
• First-Year Bonus Depreciation
• Increased Business Expensing – 2012
• Recovery Periods for Qualified Leasehold Improvement Property, Retail Improvement Property, and Restaurant Property
• Suspension of the 100 percent Net Income Limitation on Percentage Depletion for Oil and Gas Marginal Well Production
• Social Security Tax Rate Reduction for Employees and Self-Employed Individuals
• Alternative Minimum Tax Patch
• Deduction of State Sales Tax
• Research and Development Credit
• Marriage Penalty Relief Extended
• No Limitation on Itemized Deductions
• Estate and Gift Tax Rates
• IRA Distribution to Charities 

Note that this alert contains a general discussion of the law and is not intended to address any particular circumstance. If you have any questions or would like to discuss these or any other tax concerns, please contact any of the attorneys listed below.