Recent tax legislation Individual Tax Provisions 1. Individual tax rates, capital gain and qualifed dividend tax rates in effect for 2010 extended through 2012. 2. The AMT patch is extended for two years through 2011. 3. American Opportunity Tax Credit set to expire December 31. 2010 is extended through 2012. 4. Student loan interest deduction extended through 2012. 5. Marriage Penalty Relief is extended for two years through 2012. 6. The new tax act extends for one year the credit for energy-saving home improvements, such as windows, insulation, and furnaces. Business Tax Provisions 1. The Sec. 179 expense available for 2010 and 2011 is $500,000 and the investment limit is $2,000,000 2. The Tax Act boosts 50%  bonus depreciation to 100% for qualified investments made after September 8, 2010 and before January 1, 2012. 3. The Research Tax Credit has been extended for 2010 and 2011. 4. The standard mileage rate for 2011 was 55.5  cents per mile. Federal Estate Tax 1. The Tax Act revives the estate tax for decedents dying after December 31, 2010, but at a significantly higher applicable exclusion amount and lower tax rate than had been scheduled.  The maximum estate tax rate is 35% with an applicable exclusion amount of $5 million.  However, the new law itself is temporary and is scheduled to sunset on December 31, 2012. Other Items 1. The Tax Act reduces the employee-share of the OASDI portion of Social Security taxes from 6.2% to 4.2% for wages paid during the payroll tax holiday (calendar year 2011) up to the taxable wage base of $106,800.  Self-employed individuals will pay 10.4% on self-employment income up to the threshold.  The employer's portion of the OASDi will remain at 6.2%. 2. WARNING TO TAXPAYERS  - THE IRS DOES NOT SEND EMAILS TO TAXPAYERS.  Any suspicious IRS emails should be forwarded to phishing@irs.gov.             For additional information about these or any other tax updates please contact our office.