Tax News & Views: May 9, 2006 (Special Edition) - Amerika Birleşik Devletleri

 

Vol. 7, No. 16

 

Author

Tax Policy Services Group, Deloitte Tax LLP

·         Conferees Announce Agreement on $70 Billion Tax Cut Reconciliation Package – Ending months of gridlock, House and Senate conferees on May 9 reached a compromise agreement on a five-year, $70 billion tax cut reconciliation bill authorized by last year’s budget resolution.

The agreement is good news for upper-income individuals. For 2006, it shields 15 million individual taxpayers from tax increases threatened by the expiration of temporary alternative minimum tax (AMT) relief after 2005. It extends lower rates for capital gains and dividend income through 2010 so that they will now expire with most of the rest of President Bush’s tax cuts. And it creates potentially significant benefits to higher income individuals who will be permitted to convert traditional IRAs to Roth IRAs starting in 2010.

In addition to extending, and enhancing, temporary AMT relief for one year, the agreement extends, through 2008, the subpart F exception to current income inclusion for active financing and insurance income, and provides temporary look-through treatment for payments between related controlled foreign corporations.

See attached file for details.

Attachments

Newsletter: Tax News & Views - May 9, 2006 (Special Edition) (96 KB)

Conferees Announce Agreement on $70 Billion Tax Cut Reconciliation Package