Monday, November 23, 2009

AS THE CONGRESS TURNS

As I mentioned in Saturday’s BUZZ, "tax-challenged" Chuck Rangel promised an “extenders” bill will be acted on in December.

I just got the word that the House Ways and Means Committee has issued a 7-page summary of the proposed “Tax Extenders Act of 2009”. According to the summary, the Act will extend for one year only (through December 31, 2010) 40 tax provisions that are currently scheduled to expire on December 31, 2009. The Committee hopes to pass this Act by the end of the year.

The estimated $30 Billion cost would be offset by tax-raising provisions, but these provisions are not identified in the summary.

While most of the provisions are business-related, the Act will extend the “usual suspects” of 1040 tax benefits –

• The option to deduct state and local sales tax instead of state and local income tax.

• The above-the-line deduction for educator expenses.

• The above-the-line deduction for qualified tuition and fees.

• Tax-free transfers from IRAs to charities.

Added to the list of regulars is the additional standard deduction for real estate taxes.

FYI, the American Recovery and Reinvestment Act of 2009 had previously extended the residential energy tax credit for 2009 and 2010.

There is no mention of extending, even for one-year, the annual dreaded Alternative Minimum Tax (AMT) “fix” (the AMT is dreaded, not the fix). House lawmakers indicated that passing of the annual “fix” will be done next year.

Click here to download the Committee’s 7-Page Summary.

TTFN

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