January 22, 2011 by Rich Bloomfield
The estate tax issue may be closer to resolution today (December 7, 2010) than any time in the last 9 years – at least for the next 24 months. Earlier today, President Obama held a news conference confirming he has reached a compromise with Republicans on multiple tax issues, including the estate tax. The preliminary agreement regarding estate taxes is a $5 million per individual estate tax exemption and a 35% estate tax rate for the next two years.
Republicans are lining up in support. Liberal Democrats are in revolt. There is certainly some back-room arm twisting going on in the Democratic Party as I write this post.
“We oppose acceding to Republican demands to extend the Bush tax cuts to millionaires and billionaires,” Rep. Peter Welch, D-Vt., said in a letter to Speaker Nancy Pelosi...
January 16, 2011 by Rich Bloomfield
Do you want to convert your IRA to a Roth but think it will cost to much in taxes? Maybe not – read on!
Much has been written about converting your IRA to a Roth IRA in 2010. Even though this option to convert continues into the future for everyone the furor over the conversions in 2010 stems from the fact that the tax from the conversion does not need to be paid on the 2010 return but can instead be spread out and paid half in 2011 and the rest in 2012. This spreading option is not available for conversions after 2010. This ability to spread out the tax effect of the conversion is significant, however you may be able to do one better and convert for free! First determine if you have losses or losses carrying forward to 2010, abnormally high medical expenses or even unused charitable contribution carry-forwards in 2010...