{"id":19566,"date":"2010-12-22T08:51:26","date_gmt":"2010-12-22T12:51:26","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=19566"},"modified":"2010-12-22T08:51:52","modified_gmt":"2010-12-22T12:51:52","slug":"hedge-fund-alert-the-new-tax-act","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/12\/2010\/hedge-fund-alert-the-new-tax-act.html","title":{"rendered":"Hedge Fund Alert: The New Tax Act"},"content":{"rendered":"

Holland & Knight Alert on the New Tax Act<\/strong><\/p>\n

Hedge fund law specialists, Holland & Knight said that the estate, gift and generation skipping transfer tax provisions of the new tax act are of major interest.<\/p>\n

These changes will require every estate plan to be reviewed to make sure the best advantages are incorporated. Holland & Knight feels that there are significant planning opportunities still left for 2010.<\/p>\n

Private Wealth Services Alert 12 20 10<\/a> (413KB)<\/p>\n

Sadis & Goldberg on the Tax Relief Act of 2010<\/strong><\/p>\n

The Tax Code has been recently amended to extend what is commonly known as the “Bush Tax Cuts” that Congress enacted in 2001 (which by their original terms expired on December 31, 2010) will apply for another two years.\u00a0 \u00a0The extension means that the income tax rates will now stay at 28% and 35%. \u00a0Capital Gains tax rates will now stay at 15% and qualified dividends will continue to be taxed at 15%. \u00a0The Alternative Minimum Tax exemption amount has been increased which will lower the number of taxpayers subject to this tax.<\/p>\n

There are a number of tax breaks for businesses and individuals, such as the ability to make a tax free distribution of up to $100,000 from an IRA to a charity, and faster depreciation for businesses when property is placed into service.<\/p>\n

Another major change is in the Federal Estate Tax law. \u00a0The Federal Estate tax exemption will now be raised to $5,000,000, and the tax rate reduced from 55% to 35% for Federal Estate taxes. For estates of decedents dying in 2010, they can elect to have no estate taxes apply, and to have a modified basis carryover, instead of an estate tax imposed retroactively along with a step-up in basis. \u00a0For example, if a married couple owns $10,000,000 in assets, with a properly planned estate, they would not be subject to any Federal Estate taxes.\u00a0 However, we must remind you that New York State has a separate estate tax imposed on estates over $1,000,000.<\/p>\n

Prior to 2011, the Gift Tax Exemption was limited to $1,000,000. \u00a0As of January 1, 2011, the gift tax exemption is increased to $5,000,000. \u00a0Taxpayers should consider using their increased gift tax exemption over the next two years, as the lifetime exemption may decrease in the near future.\u00a0 There are a variety of estate planning techniques which can use the increased gift tax exemption.\u00a0 Additionally, the Generation Skipping Tax Exemption will be raised to $5,000,000.<\/p>\n


\n<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Holland & Knight Alert on the New Tax Act Hedge fund law specialists, Holland & Knight said that the estate, gift and generation skipping transfer tax provisions of the new tax act are of major interest. These changes will require […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16005,3],"tags":[],"class_list":["post-19566","post","type-post","status-publish","format-standard","hentry","category-developing-stories","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/19566","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=19566"}],"version-history":[{"count":3,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/19566\/revisions"}],"predecessor-version":[{"id":19570,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/19566\/revisions\/19570"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=19566"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=19566"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=19566"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}