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2013
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The IRS finalized its regulations on the medical device excise tax and released interim guidance that provides safe harbor rules for determining constructive sales price.
The IRS issued the 2013 optional standard mileage rates (Notice 2012-72) used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
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California Court Of Appeal Holds Right To Replicate And Install Software Is License Of Intangible Property For Apportionment Purposes
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The IRS on Nov. 30 issued proposed regulations and frequently asked questions on the new Medicare taxes scheduled to take effect in 2013.
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With an adjustment for inflation, the new law (named The American Taxpayer Relief Act of 2012) leaves taxpayers exemptions from estate tax, gift tax, and generation skipping transfer (GST) tax unchanged from their 2012 levels.
Finally, the Obama Administration had proposed several other changes to federal gift and estate tax law, such as eliminating valuation discounts for certain types of mily limited partnerships (FLPs) and limiting the terms of grantor retained annuity trusts (GRATs). But none of these are included in the new law.
The Patient Protection and Affordable Care Act (sometimes called Obamacare) comes with two new taxes for higher income taxpayers beginning on January 1, 2013.
The maximum tax rate, however, for all of these taxes has increased from 35% in 2012 to 40% in 2013.
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On January 1, 2013, President Obama signed into law the American Taxpayer Relief Act of 2012 (the 2012 Act) that was passed by Congress during the past 72 hours, bringing closure to the main tax aspects of the so-called fiscal cliff negotiations that have been ongoing since the November election.
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In the past few weeks, attention has focused on Washington and how the politicians would deal with the tax component of the so-called fiscal cliff (the tax increases that would automatically go into effect on January 1).
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Rates Of Change: The Effect Of The American Taxpayer Relief Act Of 2012 On Individual And Fiduciary Income Taxes
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The country was heading for a fiscal cliff as the Bush-era tax cuts were scheduled to expire on January 1, 2013. But the U.S. Senate and House of Representatives voted in the final hours to make those tax cuts permanent for taxpayers with adjusted gross incomes of less than $400,000 (less than $450, info on insurance000 for married couples filing jointly).
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In addition, when Congress extended the Bush-era tax cuts in 2010, it added the new idea of portability to federal estate and gift tax law. In general, portability allows a surviving spouse to use the unused portion of his or her predeceasing spouses exemption from estate tax if proper documentation is filed at the time of the first death. The new law keeps portability. (Please note, however, that there is no portability for state estate taxes or for the GST tax, so while portability may offer relief in some circumstances, it is not a substitute for estate tax planning.)
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On New Years Day, Congress approved the first permanent set of estate, gift, and generation-skipping transfer (GST) tax rates and exemptions in 12 years.
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