Almost no one thought the federal estate tax would really be repealed. But Congress failed to act and so for one year, the United States currently does not have an estate tax. (But it is scheduled to come back with a vengeance next year.) This confusing mess has led to several questions: Will Congress reinstate the tax retroactively? Would that be unconstitutional? Should you change your estate planning documents? Is there still a gift tax? Here are some answers to questions you may have now, as well as some steps you might want to take.
Continue reading "Estate Tax Is Dead (For Now): What to Do?" »
Is the recession finally easing? Don't try telling that to struggling business owners and workers who continue to face layoffs and a tight labor market. Fortunately, unemployed people received some good news recently. They may be able to obtain an expanded government subsidy that helps them to keep their health insurance. Here are the details of the COBRA subsidy extension that was signed into law just before the end of last year. 
Every year, the dollar amounts allowed for various federal tax benefits are subject to change based on inflation adjustments and legislation. For 2010, many amounts will remain unchanged or change only slightly because inflation has been so low. Here are some important tax figures for the upcoming year, including the Social Security wage base, qualified retirement plan and IRA contribution limits, driving deductions, allowable business write-off amounts and more. 
You may have heard about a new investing opportunity called Build America Bonds. Created as part of President Obama's stimulus package passed in early 2009, the new investments are providing cash-strapped municipalities with access to capital so they can build roads, improve facilities and take on other projects. They are also providing some investors with a higher-yielding alternative to many corporate and traditional muni bonds. But Build America Bonds come with tax implications and they can be challenging for individual investors to purchase. 
Whatever Congress does about health care 