Tax Notes has published an article by Chuck O'Toole, reporting on expiring provisions in the tax code:
A host of tax provisions expire at midnight December 31, and legislation to extend some of them has stalled in the Senate, at least for the time being.
The House on December 9 passed H.R. 4213, the Tax Extenders Act of 2009, which would renew some 50 expiring provisions. The Senate balked at quick passage of the bill, however, mainly because of concerns about a proposal to raise $ 24.6 billion by treating carried interest in partnerships as ordinary income rather than as capital gains.
Still, Senate Finance Committee Chair Max Baucus, D-Mont., and ranking minority member Chuck Grassley, R-Iowa, both pledged in floor remarks on December 22 to renew the benefits as soon as possible after the Senate returns to work January 19. Neither, however, mentioned how or whether they would offset the incentives.
Meanwhile, the estate tax will begin its one-year repeal. The concurrent end of stepped-up basis rules will mean that estates transferred in 2010 that are worth more than $ 1.3 million ($ 4.3 million for couples), if sold, will be subject to capital gains tax based on the asset's original purchase price. Democrats have pledged to reinstate 2009 estate tax law retroactively but are likely to face a fight with Republicans and possibly members of their own caucus over the matter.
See Chuck O'Toole: "Happy New Year! Here's What's Different in the Tax Code," 2009 TNT 249-2, December 31, 2009
Posted by Marc Patterson, Managing Associate Editor, Wealth Strategies Journal.
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