ESTATE PLANNING COUNCIL OF THE LEHIGH VALLEY

1
ESTATE PLANNING COUNCIL OF THE LEHIGH VALLEY

• FEDERAL TAX UPDATE
• FEBRUARY 26, 2009
• BEST WESTERN
• BETHLEHEM, PA
• HOME OF THE LEHIGH ENGINEERS

2
ESTATE PLANNING COUNCIL OF LEHIGH VALLEY

• DOUG STIVES, CPA
• SPECIALIST PROFESSOR
• MONMOUTH UNIVERSITY
• WEST LONG BRANCH, NJ
• TEACHING TAX AND ACCOUNTING

3
Doug Stives, CPA, Lehigh 68

• Consultant and former partner at
• The Curchin Group, CPAs
• Red Bank, NJ 07701
• Teaching college is more fun

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OUTLINE FOR TODAY

• 1. The Mortgage Forgiveness Debt Relief Act of
  2007 COD Relief
• 2. Economic Stimulus Act of 2008
• 3. The Housing Act of 2008
• 4. Emergency Economic Stabilization Act
• 5. Some Cases Rulings
• 6. Changes for 2008
• 7. American Recovery Reinvestment
• Act of 2009
• 8. 2009 Changes and Predictions

5

• PART 1
• THE MORTGAGE FORGIVENESS DEBT ACT OF 2007

6
MORTGAGE FORGIVENESS

• Effective retroactive to 1/1/07
• EXTENDED TO 12/31/2012
• Not applicable to Home Equity loans or refinanced
  proceeds not used to improve property and / or
  payoff prior housing debt
• Applies only to Cancelled Debt IRC 108 can be
  used alternatively

7

• PART 2
• ECONOMIC STIMULUS ACT OF 2008

8
Economic Stimulus Act of 2008

• Rebates to Individuals
• Must have filed a 2007 return
• Single 300 (with minimum income of 3000) to
  600 or tax liability, whichever is lower
• MFJ 600 to 1,200
• Plus Children under age 17 300 each
• 5 phase-out starts at AGI
• 75,000 SINGLE / 150,000 MFJ
• 2008 return will be compared to 2007 and
  additional rebates paid where applicable

9
Economic Stimulus Act of 2008

• 250,000 179 expensing allowance for NEW or USED
  property
• Phaseout starts at
  800,000
• 50 1st year bonus depreciation
• Applies to NEW Section 1245 Property
• (Business Personal Property)
• Regular MACRS depreciation allowed
• after 179 and 50 first year
• EXTENDED FOR 2009 UNDER STIMULUS ACT
  

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2008 DEPRECIATION EXAMPLE

• LUXURY CAR
• Section 179 None
• 50 First Year 8,000
• MACRS 2,960
• TOTAL 10,960
• 2009 (2nd year) DEPRECIATION 4,800
• 2009 Stimulus Package extends this

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2008 DEPRECIATION EXAMPLE

• SUV OVER 6000 POUNDS COST 50,000
• Section 179
  25,000
• 50 First Year
  12,500
• MACRS (20 of 12,500) 2,500
• TOTAL
  40,000
• 2009 DEPRECIATION (32 of 12,500) 4,000
• 2009 Stimulus Act extends this

12
2008 2009 DEPRECIATION EXAMPLE

• CONSTRUCTION VEHICLE (DUMP TRUCK)
• Not Primarily used for transport of
  passengers
• PURCHASE PRICE 50,000
• Section 179 Deduction Entire 50,000
• Limited by business profit and phaseout

13
IRC 179

• ELECTION IN OR OUT OF SECTION 179 PERMITTED FOR
  RETURNS AFTER 2002 AND PRIOR TO 2010.
• PLANNING TIP Take 179 and if future year
  provides more tax savings, amend the earlier
  return. Use 179 where is generates the best
  benefit.
• Even if 179 is limited by active income
  limit, unused amount will carryforward to offset
  future profits.

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PLANNING WITH SECTION 179

• WORLDS DUMBEST TAX LAW ALLOWS 25,000 OF 179
  DEPRECIATION FOR SUVs OVER 6000 POUNDS
• Buy a sensible car and get
• 10,960 first year depreciation.
• Buy a gas guzzling SUV and deduct
• 25,000 PLUS 50 First Year and
• 1st year MACRS.
• For a 50,000 tank, you get 40,000 of
  
• depreciation in the first year.
• DOES THIS MAKE SENSE?

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• PART 3
• THE HOUSING AND ECONOMIC RECOVERY ACT OF 2008

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Housing and Economic Recovery Tax Act of 2008

• Housing provisions
• Refundable credit of lesser of 7,500 or 10 cost
  for
• First home
• If purchased after 4/9/08 and before 7/1/09
• CHANGED EFFECTIVE 1/1/09
• Phases out as AGI exceeds 150,000
• Must be repaid over 15 years but no interest
  under 2008 Law but 2009 Stimulus Act changed this
  and eliminated repayment

17
Housing and Economic Recovery Tax Act of 2008

• Housing provisions
• Standard deduction for property taxes
• Limited to 500 single and 1,000 joint filers
  extended to 12/09
• Apportionment of IRC 121 exclusion if residence
  sold was not always principal residence
  starting 1.1.09

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Housing and Economic Recovery Tax Act of 2008

• SOME BAD NEWS - EFFECTIVE JANUARY 1, 2009
• N/A FOR RENTAL USE PRIOR TO 2009
• FOR HOUSES CONVERTED FROM RENTALS TO RESIDENCES
  AND VICE VERSA, THE PERIOD OF TIME PROPERTY IS
  NOT USED AS PRIMARY RESIDENCE REDUCES
  APPLICABILITY OF IRC 121 EXCLUSION (250,000 /
  500,000)

19
Housing and Economic Recovery Tax Act of 2008

• FIRST ENTIRE GAIN IS COMPUTED
• FRACTION OF TIME PROPERTY WAS PRIMARY RESIDENCE
  IS MULTIPLIED BY GAIN AND OFFSET WITH THE
• 250,000 / 500,000 EXCLUSION.
• REMAINING GAIN IS TAXED AS CAPITAL GAIN - CAN BE
  DEFERRED BY 1031
• PERIOD PRIOR TO 1/1/09 IS IGNORED

20
Housing and Economic Recovery Tax Act of 2008

• ANY RECAPTURED DEPRECIATION (TAKEN AFTER MAY 6,
  1997) IS BACKED OUT OF COMPUTATION
• EXAMPLE
• HOUSE BOUGHT 1/1/05 AS SECOND HOME
• CONVERTED TO PRIMARY RESIDENCE 1/1/11

21
Housing and Economic Recovery Tax Act of 2008

• EXAMPLE (CONTINUED)
• SOLD 1/1/13
• OWNED 8 YEARS
• GAIN ATTRIBUTABLE TO 2008 AND PRIOR IS NOT TAXED
• GAIN FOR 2 YEARS USED AS PRIMARY RESIDENCE IS NOT
  TAXED

22
Housing and Economic Recovery Tax Act of 2008

• EXAMPLE (CONTINUED)
• 2 YEARS FROM 1/1/09 TO 1/1/11 ARE SUBJECT TO TAX
• 25 OF GAIN IS TAXED (2 OUT OF 8 YEARS)
• NO APPRAISALS NEEDED TIME IS ALLOCATION FACTOR

23
Housing and Economic Recovery Tax Act of 2008

• Permits for AMT
• Interest on tax exempt housing bonds
• Low income housing credit
• Rehab credit
• Increases scope of low-income housing credit
• Election to accelerate AMT and RD credits in
  lieu of 50 bonus depreciation

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Housing and Economic Recovery Tax Act of 2008

• Revenue raiser
• Beginning in 2011 credit card companies will
  report aggregate of transactions processed for
  each business

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• PART 4
• EMERGENCY
• ECONOMIC
• STABILIZATION ACT

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EMERGENCY ECONOMIC STABILIZATION ACT OF 2008

• PASSED OCTOBER 3, 2008
• Extended Educators 250 deduction, tuition
  deduction and sales tax deduction to 12/09
• 2008 AMT PATCH
• Exemptions
• SINGLE H of H 46,200
  (46,700
• 
  for 2009)
• up from 44,350 for
  2007
• MFJ 69,950 (70,950 for
  2009)
• up from 66,250 for
  2007

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Alternative Minimum Tax
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AMT Planning Ideas

• Phaseout creates 35 effective rate
• Dont prepay state income or property tax
• Home equity interest isnt deductible
• Reimburse employee business expense and avoid
  Form 2106 AND NON-ACCOUNTABLE PLANS

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AMT Planning Ideas

• Be careful about ISOs
• Watch treatment on K-1s, e.g., basis adj
• Watch for private activity bond interest
• Dont have children
• Call your Congressional Representative

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EMERGENCY ECONOMIC STABILIZATION ACT OF 2008

• MINIMUM TAX CREDIT Prior to 2013
• Greater of AMT Credit for prior year
• OR
• 50 of Unused AMT Credit
• DESIGNED TO RELIEF ISO HOLDERS WHO PAY AMT AND
  SELL SHARES IN LATER YEAR AT A LOSS

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EMERGENCY ECONOMIC STABILIZATION ACT OF 2008

• EXTENDED RULE TO 12/31/09 ALLOWING CHARITABLE
  GIFTS FROM IRAS TO CHARITIES
• MUST BE OVER 701/2
• LIMIT OF 100,000
• GREAT ADVANTAGE FOR
• STANDARD DEDUCTION
• TAXPAYERS

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Contributing IRA funds tax-free to charities
(2006-2007)EXTENDED TO 12/31/09

• Transfer cant exceed 100,000 per year
• Must be distributed by trustee
• IRA owner must be at least 70½
• Distribution considered part of RMD
• Will be reported as normal distribution on Form
  1099-R
• Individual donor reports 0 and QCD on Line
  15(b)

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Contributing IRA funds tax-free to charities

• Planning points
• Non-itemizers get benefit
• No phase-out of itemized deduction (regular
  AMT)
• No impact on 30/50 base contribution limit
• No impact on making social security taxable
• Lowers MRD
• Lowers Medicare Part B income

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EMERGENCY ECONOMIC STABILIZATION ACT OF 2008

• NOVEL PROVISION
• RIDE A BIKE TO WORK AND GET
• 20 PER MONTH TAX FREE AS A
• FRINGE BENEFIT
• EXTENDED TO 12/31/09 (FROM 2007)
• -TUITION DEDUCTION
• - SALES TAX (IN LIEU OF STATE
• INCOME TAX)
• -TEACHERS 250 DEDUCTION
• (BEFORE AGI)

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EMERGENCY ECONOMIC STABILIZATION ACT OF 2008

• EXTENDED
• 15 year MACRS for leasehold improvements and
  restaurants extended to 12/31/09
• Energy Credits extended Residential 500 Energy
  Credit for 2009 only.
• NEW
• Executive Compensation Limit to 500,000 Sounds
  great but will it work?
• I just volunteered to run GM for 500,000
  anybody interested ?

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EMERGENCY ECONOMIC STABILIZATION ACT OF 2008

• Heres one we never thought Wed see
• Brokers must report basis of securities sold
• STOCKS - January 1, 2011
• MUTUAL FUNDS 2012
• OTHER SECURITIES - 2013
• This will streamline preparation. Brokers will
  be required to provide schedule of short term and
  long term gains and losses.

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EMERGENCY ECONOMIC STABILIZATION ACT OF 2008

• CODE SECTION 6694(a)
• MORE LIKELY THAN NOT (51)
• REDUCED TO
• SUBSTANTIAL AUTHORITY (40)

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Residential Energy Credit

• For 2006, 2007 2009 (NOT 2008)
• CREDIT Up to 500 for Home Improvements
• Insulation
• Windows (200 Maximum)
• Doors
• Heat Pumps
• Central Air
• Labor and Installation Cost May Not be Included

39
Partnership Extensions

• IR 2008-84
• Limits to 5 months the 2008 extensions for
  partnership and trust returns.
• Extended Calendar Year 1065s and 1041s will be
  due September 15, 2009
• Note There is already noise out there to move
  the due date back to October 1, 2009

40

• PART 5
• CASES RULINGS

41
1091 Wash Sale Rule

• Rev Rul 2008-5
• Facts
• Taxpayer sells stock at a loss
• Less than 30 days later, taxpayer acquires same
  stock in taxpayers IRA
• Issue
• Does the loss sale rule apply to disallow the
  loss on the taxpayers individual return?

42
Cases and Rulings

• This one offers some great
• planning opportunities Parents
• gifted 25 share of house each to
• daughter and son-in-law
• Home owned by parents, daughter and son-in-law
  allowed four (4) exclusions of 250,000 PLR
  200604013

43
4 Qualifying Child Tests

• Relationship Child must be related to taxpayer
  Includes sibling and their children (really?)
• Age Child must be lt19 (lt24 if student),
  exception for disabled
• Abode Child must have same principal place of
  abode
• Support Child must not be providing more than ½
  of his or her support

44
4 Qualifying Relative Tests

• Relationship Child related to taxpayer or
  individual is member of household
• Gross income Must by gt3,500 (2008)
• Support Child must not be providing more than ½
  of his or her support
• Dependency Individual must not be qualifying
  child of another
• Exception Notice 2008-5

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Notice 2008-5

• Problem Individual must not be qualifying child
  of another
• Exception Individual is NOT qualifying child of
  another if childs parent
• Is not required to file a tax return and
• Does not file a return or
• Files only to get refund of withheld taxes
• Winners
• Boyfriend wishing to claim girlfriends
  child(ren)
• Anyone taking in friend with child
• Grandparent supporting grandchildren

46
Non-cash Contributions

• Contributed clothing and household items must be
  good after 8/17/06
• Unless appraisal indicates value gt500
• Receipts need more than 2 bags of clothes
• No deduction for used socks or boxer shorts
• St. John outfit valued at 15 of cost (Stamoulis)

47
Charitable Contributions

• Donation of Timothy McVeigh files not a
  charitable contribution (Leslie Stephen Jones)

48
Deducting Work Clothing

• Uniforms, yes Work Clothing, no!
• Uniforms required as condition of employment
• Cant be adaptable to street use
• What about Physicians Armani slacks? (Dr. Fo)
• Other Exceptions
• Safety clothing
• Military clothing
• Costumes

49
Deducting Legal Fees
50
Deducting Gambling Losses

• Report gross winnings, not net winnings!
• Rev. Proc. 77-29 recordkeeping requirements
  (diary) Hardwick, Jackson
• Date and type of gambling
• Name address of gaming establishment
• Name of other gamblers (if any), and
• Amount won and amount lost
• Supporting documentation helpful
• E.g. coin in, coin out report,
• E.g. lotteries record of ticket purchases,
  dates
• Alternate RTP method for slots (Gagliardi)

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Requirements to be a professional gambler

• Activity must be
• Pursued full time, in good faith,
• With regularity
• For the production of income for a livelihood
• Comm. v. Groetzinger)
• Yes Trucker gambling 40 hours week (Linda Myers)
• No Slot machine player (Calvao)
• Even with 132,000 of W-2Gs!
• No Tournament poker player (Tschetschot)

52

• PART 6
• CHANGES FOR 2008

53
Social Security 2008 2009

• FICA Wage Base - 102,000 - 106,800
• Maximum FICA 7,803 - 8,170
• Maximum SE Tax 15,606 - 16,340
• 
  medicare
• lt65 earned income ceiling 13,560
• Medicare B Annual Premium 1,157-2,861

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Medicare B Premium Surcharge
20
55
All Cash Gifts Must Have Receipts

• All cash gifts lt250 need
• Receipt from charitable organization or
• Bank record, e.g. cancelled check, bank statement
  or credit card statement with name of charity,
  date, etc.
• No diaries, personal bank registers
• All cash gifts gt250 Receipt required
• Payroll deduction needs pay stub, etc. with
  pledge card showing no goods or services provided
  (Notice 2008-16)

56
Non-cash Contributions

• gt500 needs Form 8283
• gt5,000 needs Form 8283 appraisal
• gt500,000 send in Form 8283 appraisal

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Tax Changes Beginning in 2008

• Kiddie tax expanded to children under 19
• (24
  for students)
• 0 capital gain for Taxable Income under 32,550
  (Single) and 65,100 (MFJ)
• 2 year use of 500,000 home exclusion for
  surviving spouse Can be used IN ADDITION to
  step in basis for surviving spouse

2
58
Tax Changes Beginning in 2008

• Phase-out of itemized deduction
• starts _at_ AGI of 159,950
• ONLY 1 FOR 2008 2009
• Minimum personal exemption of 2,333 (two thirds
  of 3500)
• All taxpayers (even Bill Gates) get 2333
  
• for 2008

59
Standard Deduction -No Marriage Penalty?
60
Tax Changes Beginning in 2008

• Money from any retirement plan can be rolled into
  ROTH IRA no longer necessary to move money
  twice
• SPECIAL PLANNING DEVICE TO CONSIDER Put money
  into non-deductible IRA for 2008 and 2009 and
  rollover in 2010 when 100,000 AGI maximum is
  removed added advantage of reporting half of
  any taxable rollover in 2010 and half in 2011

61
Pension Limitation Amounts
62
CATCH UP AMOUNTS

• For Taxpayers over AGE 50
• For 2008 5000 for 401 (K)s etc.
• 2500 for SIMPLE Plans
• For 2009 5500 for 404 (K)s etc.
• 2500 for SIMPLE Plans

63
Rules on Age-50 Catch-up

• Applies to anyone turning 50 during the year
• Exempt from all contribution limits and
  discrimination rules
• But all eligible employees must be able to make
  the same catch-up election
• Employers can match any catch-up
  contribution made by employees

64
Plans That Can Use Catch-up

• 403(b) Tax-Sheltered Annuities
• Salary Reduction SEPs (408(k))
• 401(k) Qualified Cash or Deferred Arrangement
  Plans
• SIMPLEs (408(p))
• 457 Tax-exempt Organization Deferrals
• State or Local Governmental Plans (414(v))

65
Deposit Elective Deferral Into a Roth

• Starting in 2006
• Limited to Annual Elective Deferral Amount
• 15,500 for 2008 16,500 for 2009
• Over 50 20,500 for 2008 22,000 for 2009
• Can make over ROTH AGI limit
• of 160,000

66
Deposit Elective Deferral Into a Roth

• Not excludable from wages, but not taxable in
  future (if over 59½, disabled, death etc.)
• Plan must allow for Roth
• Notice 2006-44 has sample plan amendment
• Funds maintained in separate Roth account

67
Investing in Real Estate

• Investing in real estate is permitted
• Rental property permitted what else?
• Real estate must be in Plans name
• Participant cant sell / own real estate to Plan
• Participant cant live in Plans real estate
• Real estate can be financed partially by funds
  outside of Plan
• Accumulate enough in plan to buy real estate
• Converts capital gain to ordinary income

68
IRC 199 QPAI Deduction

• Business Provisions (Ctd.)
• 199 DEDUCTION (not a credit)
• 2005 2006 3
• 2007 - 2009 NOW 6 DEDUCTION
• 2010 after 9

69
Home Mortgage Insurance Premium

• Home Mortgage Insurance Premium Deduction
• Phases out 100,000-110,000
• Only new policies written in
  2007 2012
• 1098-INT, Box 4 (Notice 2008-15)
• Monthly amortization
• Prepaid must be amortized over 84 mo.

47
70
The Kiddie Tax Rate - 2008

• Net Unearned Income of child under 19 ( 24 if
  still a student) taxed at parents marginal tax
  rate
• Increased from age 14 by TIPRA and 18 by SBTA
  2007)
• Tax increase for 14 -19/24 year-olds
• Dividends up to 15, not 0 cap. gain rate
• Interest up to 35, not 10 ord. inc. rate
• Base is 900 Exemption is 1,800

70
71
Planning Pointers for Kiddie Tax

• Delay income
• Invest in growth stock
• Use tax efficient mutual funds
• Invest in US savings bonds
• Move CUTMA to 529 plan

72
Education Credits

• Lifetime Learning Credit 2,000
• 10,000 of tuition X 20
• Hope Credit 1,800 (2008)
• 100 first 1,200 and 50 of next 1,200
• Phase-out
• Single 48,000 - 58,000
• MFJ 96,000 - 116,000

80
73
Alternative Fuel Car Credit - 30

• Original user of first 60,000 entitled to 2-part
  credit
• Fuel cell credit (4,000 - 32,000)
• Non-qualified vehicles All Toyotas (phased-out)
• Qualified vehicles, (IRS creates list) e.g.,
• Ford Escape Hybrid Front WD, 2008 3,000
• Mercury Mariner Hybrid 4WD 2,200

74
Filing of Estimated Tax Payments

• No filing of estimates until 1,000 due

75
2008 Individual Estimated Tax
76
THE PHASEOUT OF Phaseouts

• The Personal Exemption eliminates only 1/3 of
  exemption
• 2/3 in 2008 2009 - 2333
• (2/3 of 3500)

77
3121 Employment Taxes

• ILM 200823001
• Retired employees fully vested in deferred
  compensation
• Therefore FICA taxes were paid on present value
  of amount to be received
• Employer went bankrupt and deferred comp not paid
  
• Issue
• Is employee entitled to a refund of FICA paid on
  amounts never received?

78

• NO !
• Are you surprised?

79
DONE IN DECEMBER 2008

• No RMD needed in 2009
• Due to Stock Market Crash, Retirement
  Plans have been devastated
• Amounts withdrawn in 2008 severely
  reduced balances in plans available for future
  payouts

79
80

• PART 7
• The American Recovery and Reinvestment Act of
  2009
• SIGNED FEBRUARY 16, 2009

81
THE STIMULUS ACT

• The MAKING WORK PAY credit on 2009 returns
• Single 400 phases out at 75,000 - 95,000
• Married 800 phases out at 150,000 190,000
• Social Security recipients to get 250
• Adjustments to Federal Income Tax Withholding to
  begin April 1, 2009 This is guaranteed to
  create a huge mess and add to confusion

82
HOUSING STIMULUS (AGAIN)

• 7500 Increased to 8,000 effective 1.1.09 to
  12.1.09 (NOT 12.31.09)
• Can be claimed on 2008 return
• Credit DOES NOT HAVE TO BE REPAID unless house
  sold within 36 months
• Phase out at 75,000 (single)
• 150,000 (married)

83
VEHICLE PURCHASE STIMULUS

• Sales and excise taxes deductible before AGI for
• New Vehicles under 8500 pounds
• costing less 49,500
• Phase out 125,000 single
• 250,000 married

84
The American Opportunity Education Tax Credit

• Replaces HOPE Credit
• Available for 4 years of undergraduate education
• 100 of first 2000 and 25 of next 2000
• AGI limit 80,000 single and 160,000 married
• 40 of Credit is refundable

85
COBRA ASSISTANCE

• Terminated employee pays 35 of COBRA medical
  insurance premiums
• Former Employer pays 65 BUT employer get credit
  
• Phase out 125,000 - 145,000 single
• 250,000 - 290,000 married
• Retroactive to 9.1.08

86
DONE IN FEBRUARY 2009THE RECOVERY ACT

• IRC 1374 (Built in Gains for C corp appreciation
  within 10 years of S election)
• New Law reduces look back to only 7 years
• IRC 1202 (50 of gain excluded on Small Business
  stock sales)
• New Law eliminates 75 of gain
• BUT its 75 of 28 making effective tax rate 7

87
THE RECOVERY ACT

• CARRYBACK OF NET OPERATING LOSS EXTENDED FROM 2
  TO 5 YEARS for 2008 2009
• New Twist You can carryback 2, 3, 4 or 5 years
• Example 2008 NOL can go back to 2003, 2004, 2005
  or 2006

88

• PART 8
• WHAT WILL CONGRESS DO NEXT?
• 2009 AND BEYOND

89
FINAL REGS FOR 7216effective 1.1.09

• This wins the award for the biggest pain in the
  neck award
• Must have WRITTEN AUTHORIZATION
• From clients to release any data.
• Does this mean you need clients written notice
  to mail them a Newsletter?

90
2009 CHANGES???

• FLAT Tax Not likely
• VAT or Consumption Tax This will happen
• 3. Increased Top Rate 39.6, 44 ???
• 4. Higher Capital Gains Rates
• Future of 0 - Tax Break for Rich???
• Will increase of 15 rate take stock
• market down further?

90
91
2009 CHANGES???

• 5. Social Security tax on salaries or
  self-employment income over 250,000
• 6. S corporation K-1 income to be subject to S/E
  tax Hire kids, parents, spouse beef up
  benefits Maybe revoke S election
• 7. Tax on sale of homes for high income
  taxpayers
• 8. 100 of Social Security benefits taxable for
  Very High income taxpayers

91
92
2009 CHANGES???

• 9. Make Estate and Gift Tax Unified Credit
  equivalent PERMANENT at 3.5 million
• Alternative Lower the rate from 45
• for smaller estates and
  gifts
• 10. Phase out Social Security benefits for the
  wealthy Lets hope not !
• 11. Phase back in the phase outs of itemized
  deductions and personal exemptions

92
93
2009 CHANGES???

• What else?
• Will Congress have the guts to tax Hedge Fund
  managers income as wages instead of Capital
  Gains?
• Will they put in some serious incentives to make
  America independent of foreign oil?

93
94
2009 CHANGES???

• 3. Extension of IRC 179 and 50 first year
  depreciation DONE !
• 4. Incentives to buy US automobiles
• 5. ?

94
95
ESTATE PLANNING COUNCIL OF THE LEHIGH VALLEY

• THANK YOU FOR ATTENDING
• DOUG STIVES, CPA
• MONMOUTH UNIVERSITY
• WEST LONG BRANCH, NJ
• DSTIVES_at_MONMOUTH.EDU