Thursday, December 31, 2009

Congress Lets 50 Tax Breaks Expire

From MSN Money.

"Most of the fading-out 50 can, and probably will, be reauthorized retroactively, creating an inconvenience for some taxpayers but not the same sort of mess as Congress' failure to resolve the future of the estate tax. The estate tax will expire Dec. 31, and Democrats are pledging to resurrect it retroactively, leading to all sorts of potential legal problems, as well as some planning opportunities, for wealthy families.

Among the expiring individual tax breaks:

* The deduction for state and local sales taxes for itemizers (which benefits mainly residents of states that don't impose an income tax).
* The additional $1,000 deduction for real-estate taxes for people who claim the standard deduction.
* The $4,000 deduction for college tuition.
* A $250 deduction for teachers who spend their own money on classroom supplies."

Let's not forget the hastily-drawn AMT patch! Then, there's the business stuff...


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