TROY, Mich. (WJBK) -- We have managed to avert some of the ‘Fiscal Cliff.' It's time to celebrate!
Here's a Fiscal Cliff Party SWAG Bag you don't want to be left without, says Leon LaBrecque, JD, CPA, CFP, CFA, Chief Strategist and founder of LJPR, a firm managing over $470 million* in assets.
LaBrecque outlines some of the major items in the Fiscal Cliff SWAG Bag:
The top tax rate will permanently rise to 39.6% for families with income above $450,000 and individuals above $400,000, up from the current top rate of 35%
The tax on capital gains and dividends will be permanently set at 20% for those with income above the $450,000/$400,000 threshold. It will remain at 15% for everyone else.
The estate tax will be set at 40% up from the current level of 35% for those with estates over $5million ($10 million for couples), and it will be indexed to inflation.
The 2009 expansion of tax breaks for low-income Americans: the Earned Income Tax Credit, the Child Tax Credit, and the American Opportunity
Tax Credit will be extended for five years.
Includes a permanent patch fix for the alternative minimum tax (AMT)
The payroll tax holiday will be allowed to expire.
Two limits on tax exemptions and deductions for higher-income Americans will be re-imposed: Personal Exemption Phase out (PEP) will be set at $250,000 and the itemized deduction limitation (Pease) kicks in at $300,000.
The full package of temporary business tax cuts will be extended for another year.
Provisions for the doc fix, avoids a cut in payments to doctors treating patients on Medicare.
Federal unemployment insurance will be extended for another year, benefiting those unemployed for longer than 26 weeks.
A nine-month farm bill fix will be attached to the deal.
The pay freeze on members of Congress, which Obama had lifted earlier this year, will be re-imposed.
The sequestration cuts will be delayed for two months. Half of the delay will be offset by discretionary cuts, split between defense and non-defense spending.
The new tax law extends the ability to make Qualified Charitable Deductions (QCDs) of RMDs directly (or indirectly) to charity.
Friday, May 17 2013 10:07 AM EDT2013-05-17 14:07:17 GMT
A touching moment on the mound in Tampa Bay. A military father fresh home from Afghanistan surprised his daughter during the first pitch of Thursday night's Red Sox vs. Rays game.
A touching moment on the mound in Tampa Bay. A military father fresh home from Afghanistan surprised his daughter during the first pitch of Thursday night's Red Sox vs. Rays game.
Friday, May 17 2013 9:17 AM EDT2013-05-17 13:17:09 GMT
Motor City Comic Con gathers comic book and multi-media dealers from across the country, along with some of the biggest names of the industry May 17-19 at the Suburban Collection Showplace in Novi.
Motor City Comic Con gathers comic book and multi-media dealers from across the country, along with some of the biggest names of the industry May 17-19 at the Suburban Collection Showplace in Novi.
Friday, May 17 2013 8:58 AM EDT2013-05-17 12:58:06 GMT
Gallery on the Boulevard is now open to the public. The restored 1918 residence, located in the Historic District of Pontiac's West End, is now home to wonderful works of art.
Gallery on the Boulevard is now open to the public. The restored 1918 residence, located in the Historic District of Pontiac's West End, is now home to wonderful works of art.
Friday, May 17 2013 8:33 AM EDT2013-05-17 12:33:57 GMT
The third time's the charm for Candice Glover on "American Idol. The booming 23-year-old R&B vocalist won the Fox singing competition after auditioning a trio of times and making it to the finals this year.
The third time's the charm for Candice Glover on "American Idol. The booming 23-year-old R&B vocalist won the Fox singing competition after auditioning a trio of times and making it to the finals this year.
