Troy, MI May 2, 2012 – “The expiration of the Bush Tax cuts at the end of 2012 affects virtually every individual taxpayer in the United States, as well as corporations and nonprofit institutions,” says Leon LaBrecque, JD, CPA, CFP, CFA, a financial analyst, estate planning attorney and wealth manager, who founded LJPR, a firm managing over $420 million* in assets. LaBrecque has written a White Paper to serve as a guide through the storm: The Perfect Tax Storm: Prospective Expiration of the Bush Tax Cuts An Overview of the Income and Estate Tax Effects For Individuals and Nonprofit Institutions.
In general, the expiration broadly means:
The two “marriage penalty elimination” provisions will expire, so that:
The standard deduction for married couples will fall, no longer double what it is for single filers; and
The ceiling of the 15% bracket for married couples will fall, no longer double what it is for single filers
The tax rate on qualified dividends earned by middle- and upper-income taxpayers will rise from 15% to ordinary wage tax rates
The 10% tax bracket will expire, reverting to 15%
The child tax credit will fall from $1,000 to $500
The Earned Income Credit is eliminated
The tax rate on long-term capital gains earned by middle- and upper-income taxpayers will rise from 15% to 20%
The 25% tax rate will rise to 28%
The 28% rate will rise to 31%
The 33% rate will rise to 36%
The 35% rate will rise to 39.6%
The AMT (Alternative Minimum Tax) will revert to 2001 levels
The PEP (personal exemption phase out) and Pease (itemized deduction phase out) provisions will be restored, rescinding from high-income taxpayers the value of some exemptions and deductions.
The Estate tax will revert to an exemption level of $1 million (from the current $5,120,000 for 2012) and rates that top out at 55%
The Gift tax will revert to a $1 million exclusion
The Generation Skipping Tax (GST) exclusion will revert to $1 million
For creative answers and solutions, read LaBrecque’s White Paper.
About LJPR: LJPR, LLC is an independent wealth management firm headquartered in Troy, MI. For over 20 years, LJPR has been reducing uncertainty for their clients’ finances by providing creative wealth management solutions in investments, taxes, financial planning and estate planning. For more information about the firm, including the firm’s blog, visit their site. Leon C. LaBrecque is an attorney, CPA, CFP®, and CFA (Chartered Financial analyst). Leon is CEO and chief strategist for the independent wealth management firm, LJPR. Leon is an estate planning attorney. To review a comprehensive paper on Testamentary letters, click here; to see other firm resources on issues of tax, financial and estate planning, go to
http://ljpr.com. These resources on various financial topics are frequently referenced by advisors, media outlets, and consumers across the nation. Leon LaBrecque’s direct e-mail is leon.labrecque@ljpr.com. The Firm’s telephone is 248-641-7400.
*As of 3-31-12.
Posted By: How May I Help You NC
Wednesday, May 2nd 2012 at 11:13AM
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