Tax Rate Changes Effective 1-1-2011
Effective 1/1/2011 the so called Bush tax cuts will expire. 2010 year end planning to capture long term gains at the lower rated is essential. Give us a call we can sort out the details and present the opportunities to you. The effect will be to increase various tax rates as outlined in the following table:
|
Type of Tax |
2010 |
2011 and after |
|
Individual income
|
10%, 15%, 25%, 28%, 33%, and 35% |
15%, 28%, 31%, 36%, and 39.6% |
|
Long term capital gains
|
0% and 15% |
10% and 20% |
|
Qualifying dividends
|
0% and 15% |
Treated as ordinary income (see Individual rates)
|
|
Estate Tax
|
Inapplicable for 2010 |
Fully reinstated with a top rate of 60% and a $1 million exemption |
