1930 N Arboleda #201, Mesa, AZ 85213
Arizona Attorneys, With Law Offices In Mesa
Mesa Arizona Estate Planning Attorney
  • 1930 North Arboleda, Suite 201
    Mesa, AZ 85213
    40 N. Central Avenue, Suite 1400
    Phoenix, AZ 85004
    • Best way to reply

    • Gunderson, Denton And Peterson Office Locations

      View View Gunderson, Denton And Peterson Locations in a larger map

      Planning for the Future with Gunderson Denton

      Does The American Taxpayer Relief Act of 2012 Affect You?

      Does the American Taxpayer Relief Act of 2012 Affect You? By Gunderson Denton and Peterson in Mesa, AZ
      The House and Senate narrowly prevented the country from going over the financial cliff when they passed the American Taxpayer Relief Act (ATRA) of 2012 on January 1, 2013, which was signed into law by the President the very next day.  By extending a good deal of tax provisions and temporarily postponing major automatic spending cuts that were scheduled to take effect in 2013, the ATRA provides certainty by making many of the expiring tax provisions permanent.  It also increases the top income and estate tax rates.  Here are some brief highlights of the law.

      ATRA makes permanent the six federal income tax rates that were in effect for 2012, but creates a new top rate of 39.6% beginning this year for individuals with taxable incomes exceeding $400,000, and married couples filing joint returns with taxable incomes exceeding $450,000.  This means that there are now seven tax brackets, 10%; 15%; 25%; 28%; 33%; 35%; and 39.6%. People who owns cryptocurrency are also getting higher taxes. With the help of cryptocurrency taxes professional, they lowered how to work out percentages of the taxes and thus saving a lot of money from taxes.

      ATRA makes the existing rates that generally applied to long-term capital gains and qualifying dividends permanent as well.  As a result, taxpayers in the lowest two tax brackets will generally pay no tax on long-term capital gains or qualified dividend, and those in the next four brackets will generally continue to pay tax at a maximum rate of 15%.  However, starting this year, a new 20% maximum rate will generally apply to those in the 39.6% tax bracket.

      ATRA also permanently extends Alternative Minimum Tax relief in the form of increased AMT exemptions amounts.  The increased exemption amounts apply retroactively to 2012, and will be indexed for inflation in future years.  Also permanently extended are provisions that allow personal tax credits to offset AMT liability.

      Additionally, the top federal estate tax rate is permanently increased from 35% in 2012, to 40% beginning in 2013.  The $5 million estate and gift tax exclusion amount, indexed for inflation, that applied in 2012 is retained as well.

      ATRA also makes permanent the “portability” provisions in effect for 2011 and 2012 that allow the executor of a deceased individual’s estate to transfer any unused exclusion amount to the individual’s surviving spouse unless and until the surviving spouse re-marries.

      ATRA phases out personal and dependency exemptions for high-income individuals starting in 2013.  (These affected taxpayers are those with adjusted gross incomes exceeding: $300,000 married filing jointly; $275,000 head of household; $250,000 for single; and $150,000 married filing separate.)  These individuals may also be subject to a limitation on the amount of itemized deductions they are able to claim. Married couples can get help from a marriage tax uk company for their tax concerns.

      Finally, ATRA extends many other tax provisions that had expired; some are extended permanently (“Marriage penalty” relief; Dependent care tax credit; adoption tax credit; Child tax credit; Coverdell education savings accounts; Employer-provided education assistance; Student loan interest deduction), others temporarily (Earned income tax credit; American Opportunity credit; credit card for bad credit; $250 deduction for educator classroom expenses; deducting mortgage insurance premiums, state and local sales tax, and qualified higher-education expenses; Charitable IRA distributions; Exclusion of qualified mortgage debt forgiveness; 50% bonus depreciation).

      If you have not done so already, you’ll want to take some time now and consult with a qualified attorney or accountant to figure out how you may be affected, or how you can take advantage of some of these changes to protect your assets.

      Author Brent GundersonWritten By

      Mesa Location:
      1930 N Arboleda #201

      Mesa, Arizona 85213
      Office: 480-655-7440
      Fax: 480-655-7099
      Email: contact@gundersondenton.com
      Website: GundersonDenton.com

      Phoenix Location:
      40 N Central Ave #1400
      Phoenix, AZ 85004
      Phone: 480-325-9937

      Lawyers for estate planning and immigration in Mesa, Arizona


      Comments are closed.

      Estate Planning

    • Mesa Arizona Estate Planning Lawyer Brent Gunderson
      Debbie Mitchell, estate planning paralegal at Gunderson Denton
      Paralegal For Estate Planning Lindsey Rice
    • GDP Estate Planning Blog

      Is There an Income Tax Time Bomb Lurking in Your Estate Plan?

      Estate Planning for Young Families

      Estate Planning Practice News Update: Brent Gunderson now licensed in both AZ and NV

      The Shocking Truth About Asset Protection Planning

      Three Estate Planning Mistakes Farmers and Ranchers Make and lose their cash and How to Avoid Them

      Arizona Is One Of Only A Handful Of States That Offer A “Transfer On Death” Designation For Automobiles

      Does Your Family Member Have Capacity To Create A Will?

      How Clients Can Easily Integrate Asset Protection Trusts into Their Estate Plans

      5 Things to Consider for Flexible Trusts to Update Your Estate Plans

      I Created A Will With A Form I Found On The Internet. Do I Need To Worry About Its Validity?

      Five Ways to Make Trusts More Flexible

      And Then There Was One: When Removal Clauses Backfire

      Why You Should Avoid DIY Estate Planning

      How to Create a Successful, Multigenerational Wealth Transfer Plan

      How to Become a Multigenerational, Purpose-Driven Advisor

      Trust-Focused Strategies for Reducing Income You or Your Trustee Can Use Now

      Lessons from the Estate of Tom Clancy: Careful Drafting Matters

      The 4 Estate Planning Documents Everyone Needs

      Asset Protection Planning for the Modern Client

      What Legacy for Your Children

      How to Protect Inherited IRAs After the Clark v. Rameker Decision

      How Important is it to be Clear When Drafting Your Last Wishes? The Casey Kasem Example.

      The Most Important Parts of Estate Planning Can’t Get Legislated Away

      Three Top Reasons to Update Your Estate Plan in 2014

      The Importance of Revising an Estate Plan After Divorce

      Charitable Giving After ATRA

      Does the American Taxpayer Relief Act of 2012 Affect You?

      Why You Should Review (and Update) Your Estate Plan

      Estate Planning for Blended Families and Stepchildren

      Estate Planning–Securing the Future for Yourself and Loved Ones

      Estate Planning Law at Gunderson, Denton & Peterson, P.C.

      Estate Planning Moves to Make Before the End of 2012

      The Estate’s Responsibilities to Creditors and the Basics of Transferring the Estate

      Estate Planning: What are the risks of creating your own plan?

      • Get Linkedin Mesa Arizona Lawyer
      • Legal counselors Facebook
      • Mesa Arizona Lawyer Twitter Account
      • law feed, legal advice, blogs and more

      Additional Estate Planning Resources

      irs.gov - Estate Planning Info For Small Business And Self Employed Individuals

      irs.gov - Estate And Gift Taxes

      Estate Planning Resources And Tools From The Wealth Counsel

      Mesa Arizona Attorneys And Lawyers contact@gundersondenton.com
      1930 N Arboleda #201
      Mesa, AZ 85213
      Phone: 480-655-7440

      Office Hours

      Monday-Friday 8am-5pm

      Skilled Professionals. Personal Service. Exceptional Results.
      Privacy Policy
      Design By Mesa Web Designer MFWD