Discussion:New Tax Law - One Omission

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Discussion Forum Index --> Advanced Tax Questions --> New Tax Law - One Omission


Discussion Forum Index --> Tax Questions --> New Tax Law - One Omission

Death&Taxes (talk|edits) said:

19 December 2010
Isn't the provision that permits a person electing the standard deduction to deduct $500 of real estate tax on personal residence ($1000 on joint return) gone with the wind?

In doing a projection using BNA's Tax Planner, I did not see this BEFORE the new act was passed, and don't see it in the extenders.

Solomon (talk|edits) said:

19 December 2010
You are correct DT.

Actionbsns (talk|edits) said:

19 December 2010
I have another question. I thought the Making Work Pay Credit of $800 (for a married couple) was a one year credit, but it's popping up on my 1040 draft for a tax planning client. Is it around this year again? Since their tax liability was in the $17,000 range and we're discussing additional ES payments, I've not taken it into consideration for this client. If there's a pleasant surprise, so be it.

Solomon (talk|edits) said:

19 December 2010
No Schedule M - 2% reduction in employee social security tax replaces Making Work Pay Credit.

Tkelly911 (talk|edits) said:

19 December 2010
If by this year you mean 2010, then yes, the MWP Credit is still with us. It is a two year credit. See IRC § 36A. But it's a little late for 2010 tax planning, and as Solomon observes, the Payroll Holiday (2011) uses the 2% reduction instead. See IRC § 3101(a) as revised by the tax bill just signed by the President.

Taxea (talk|edits) said:

21 December 2010
Death & Taxes...if your referring to the extension of the Bush tax cuts...that wasn't one of them. What was extended were the original Bush cuts and an amended estate tax

Jake (talk|edits) said:

21 December 2010
I also read that the energy credit was extended - but only a limit of $500. If you already maxed out the $1,500 you do not get another $500. I have been wanting a new energy efficient front door - never claimed any energy credit before. So That $500 might be o.k. for me to help buy a $1,667 exterior door system in 2011 not includigg installation.

Cotopop (talk|edits) said:

21 December 2010
Why don't you get the enegy efficient door purchased and installed by December 31,2010 and obtain the $1,500 credit instead of waiting until next year when its only $500? Another issue of the new tax bill is that the credit is allowed for purposes of the AMT.

Jeff-Ohio (talk|edits) said:

21 December 2010
Is the exact bill (and detail) that was signed which outlines and itemizes every new (or old) law, published on this site?

Some that I have received, PPC for example, talks about all the major laws, but leaves some of the less common ones out (for small businesses).

I missed the energy credit of $500 for 2011, too.

TY

Solomon (talk|edits) said:

21 December 2010
HR 4853 Enrolled

LH2004 (talk|edits) said:

December 21, 2010
The $230 monthly cap on qualified transportation fringes which are transit passes and commuter highway vehicles under sec. 132(f)(2) was extended (sec. 722 of the new law), but that hasn't stopped these guys from continuing to encourage the public to harass their Congressmen about it.

Jake (talk|edits) said:

22 December 2010
Re: "Why don't you get the enegy efficient door purchased and installed by December 31,2010 and obtain the $1,500 credit instead of waiting until next year when its only $500? Another issue of the new tax bill is that the credit is allowed for purposes of the AMT."

1. I don't have time to get that done by 12-31-10 - and most companies worth hiring are slammed. 2. I think the 2009-10 energy credit of up to $1,500 was also allowed for purposes of the AMT.

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