Update on the American Taxpayer Relief Act and the Fiscal Cliff

Event Overview

On Jan. 1, 2013, the United States Congress passed the American Taxpayer Relief Act of 2012.

The act contains a number of important changes to tax rates affecting high income individuals, the estate tax, and provides permanent alternative minimum tax relief. It also retroactively reinstates and extends through 2013 a number of important business tax provisions that expired at the end of 2011 as well as a number of expired energy tax provisions.

This discussion will cover:

• Bonus depreciation
• Estate tax exemption and rate
• Marginal tax rate increase for taxpayers with incomes greater than $450,000/$400,000 (joint filers/single filers)
• Personal exemption phase out and the itemized deduction limitation
• Capital gains and dividends
• Alternative minimum tax
• Business, individual and energy tax extenders
• Expansion of Roth IRA transfers
• Expiration of the 2 percent payroll tax holiday

Related Insights