Brady and Associates, LLC

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The Tax Relief, Unemployment Insurance  Reauthorization, and Job Creation Act of 2010

This most recent bill includes a two-year extension of the Bush era income tax rates.  Other key aspects of the law include:

· Extending the current income tax rates for two years as well as the itemized deduction and personal exemption rules

· Extending  the current dividend and capital gains rates for two years. 

· Alternative Minimum Tax  path by increasing the exemption amount.

· A 13-month extension of unemployment benefits.

· A one –year reduction in the FICA payroll tax.  The normal employee rate of 6.2 percent is reduced to 4.2 percent.  The rate for self-employed individuals is reduced from 12.4 percent to 10.4 percent

· Extension of the child Tax Credit

· Extension of the Earned Income Credit

· Extension of the American Opportunity Tax Credit inducing extension of income limits.

· An extension of the  2010 bonus depreciation allowance through 2011

· An extension of the Section 179 depreciation deduction maximum amounts and phase out thresholds through 2012.  This provision will allow businesses to deduct 100 percent of investments in plant and equipment in the first year.

· Several business tax credits for alternative fuels as well as an extension of the domestic Energy Property Tax Credit with limitations.

· Extension of the Research and Experimentation Credit for business.

· Estate tax adjustment for two years with a rate of 35 percent with an exclusion amount of $5 million.