Tax Updates
Presented by Ivan Ketterman & Darryl Nitta
February 20, 2008
[Circular 230 Disclaimer: This presentation was not intended or written to be used, and it may not be used, for the purposes of avoiding U.S. federal, state or
local tax penalties. The reader should consult with a tax professional with respect to the application of any of the material contained herein to his or her
particular factual situation.]
Overview
1. One-year Patch for AMT
2. Mortgage Debt Relief
3. Tax Technical Corrections Act of 2007
4. Energy Legislation
5. Virginia Tech Victims Tax Relief
6. Consolidated Appropriations Act of 2008
7.
Pension Protection Act of 2006
8. Looking Ahead
9. Other Key Provisions for 2007
10. Bush’s Stimulus Plan
3
One-year Patch for AMT
The House passed Senate amendment to the
Tax Increase Prevention Act of 2007 on
12/19/2007
AMT exemption amount - $66,250 for joint
filers; $44,350 for individuals; $33,125 for
married filing separate returns
$40,000 exemption for corporations and $22,500
exemption for estates or trusts remains
unchanged for tax years beginning in 2007
4
One-year Patch for AMT (cont.)
Threshold levels for calculation of the phase-out
remain unchanged
The exemption amount is still reduced by 25% for
each $1 of AMTI in excess of thresholds
1)
$150,000 in the case of married filing joint,
surviving spouses and corporations
2)
$112,500 in the case of unmarried
3)
$75,000 in the case of married filing separate
or an estate or trust
5
One-year Patch for AMT (cont.)
Use of nonrefundable personal credits allowed to individual taxpayers
against regular tax and AMT liability is extended to tax years beginning in
2007 (but not beyond).
dependent care credit,
credit for the elderly and disabled,
adoption credit,
child tax credit,
credit for interest on certain home mortgages,
HOPE Scholarship and Lifetime Learning credits,
retirement savings contributions credit,
credit for certain non-business energy property,
credit for residential energy ef