Many Federal tax breaks expired on 12/31/2009 that were widely expected to be extended. Congress, primarily the Senate, failed to take up many provisions that we have taken as permanent. Consider how many of these will affect you:
The AMT exemption amounts automatically roll back to pre-2001 levels. This will make many more of us subject to this tax.
Sales tax, college tuition and teacher’s supply deductions have been suspended.
R&D credits are suspended
Tax free IRA payouts to charities are no longer allowed.
50% bonus for first year depreciation and high limits for expensing assets are gone.
And of course the estate tax and stepped up basis rules are gone (see previous posts on this subject)
These changes are widely expected to be reinstated, some expect retroactively, but who knows what the politicians will eventually do and when they will do it.
Stay tuned for updates!