Congress will probably wait until after Thanksgiving to finalize the income tax scenario.

Numerous tax breaks that we have benefited from in recent years have expired. Tax planning is difficult this year as we may not know the tax landscape until mid December.

Some of the benefits in question:

The Bush tax rate cuts.

  • Higher AMT exemptions.
  • The lower tax rates on capital gains and dividends.
  • The deduction of sales tax in lieu of income tax.
  • Tax free payouts from IRA's to charity.
  • Write-off's for college tuition.
  • Deduction for teacher class supplies.
  • The estate tax.
  • The deduction of $1000 in property tax for non-itemizers.
  • The exclusion of $2400 in unemployment income.
  • The $1500 energy credit would be reduced to $500.
Let's keep our fingers crossed that these benefits are extended.

I will keep you posted. I will post a blog as soon as the decision is made.

(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).