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Further, people in the higher income tax bracket will see a 3 percent decrease in the amount they are able to deduct. If the proposed budget is approved, these individuals will only be able to account for 97 percent of the deductions instead of 100 percent.
The tax implications for individuals don’t stop there. According to the Green Book, “Estate and gift taxes would be extended at parameters in effect for calendar year 2009,” which means they are capped at 45 percent and at an exemption amount of $3.5 million.
Businesses will also see significant changes should the proposed tax amendments take effect. One of the biggest surprises, Stevko says, is how accountants will calculate inventory if LIFO (last in first out) is eliminated. Taxpayers will be compelled to use one of the other acceptable methods.
“This one-time increase in gross income would be taken into account ratably over the first tax year and the following seven tax years,” proposes the administration in the Green Book.
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Stay up-to-date and navigate changes with ease with our essential planning tools and comprehensive review of Form 1040 complexities. This course has been updated for tax legislation passed in late 2008 and the American Recovery and Reinvestment Act of 2009 and includes many important topics that impact your clients in these difficult times (e.g., foreclosures, repossessions, and debt forgiveness). Self-study also available.
Click here for more information or to purchase courses. |
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December 15-19, 2009 | Orlando, Florida
Gear Up will return to the Disney Coronado Springs Resort in Orlando this December for our popular Magic Week Conference—join us and earn 40 CPE credits! Choose from courses such as Technology 2.0, Professional Ethics for the EA, Ethics for Florida CPAs, 1040 Individual Tax, Business Entities, Helping Clients Through Troubled Times, Accounting, and Planning for Later years in Life. Special room rates available through November 15, 2009, and discount tickets to Walt Disney World are available! Register online or call 800.231.1860.
Click here for the full conference schedule and to register. |
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The Big Proposal
Feature Story
