The 2010 Tax Relief Act

Schneider Downs prepared a publication that highlights the key provisions of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (the 2010 Tax Relief Act). The publication includes information on the following topics and more:

• Individual Tax Rates
• Taxation of Capital Gains and Dividends
• Alternative Minimum Tax
• Temporary Payroll Tax Cut
• Provisions for Business Investment and Job Creation
• Bonus Depreciation
• Energy Incentives
• Federal Gift and Estate Taxes

Overview:
On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (the 2010 Tax Relief Act) (H.R. 4853). This compromise tax bill extends the Bush-era individual, capital gains and dividend tax rates for all taxpayers for two years through 2012. The 2010 Tax Relief Act also provides an “AMT Patch” for 2010 and 2011, and a one-year (2011) FICA payroll tax reduction (from 6.2% to 4.2%) for all workers and self-employed individuals. The bill also provides some economic stimulus provisions, such as 100% bonus depreciation through 2011, and 50% bonus depreciation for 2012, and includes some temporary extensions of certain expiring tax provisions for both individuals and businesses. In addition, in one of the more controversial provisions of the new tax legislation, the 2010 Act provides two-year temporary estate tax relief, which caps the top federal estate tax rate at 35%, and provides a $5 million exemption from the estate, gift and generation-skipping transfer taxes for 2011 and 2012.

To download the free summary of the 2010 Tax Relief Act, please complete this form.

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