The Tax Relief Act contains a trove of other tax breaks for businesses and individuals. One area of the tax-cut rules to be extended are those under JGTRRA.
The bill defers for two years the sunset rule of Sec. 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA, PL 108-27). Thus, through Dec. 31, 2012, long-term capital gain will continue to be taxed at a maximum rate of 15% (instead of 20% (18% for assets held more than five years)); and qualified dividends paid to individuals will be taxed at the same rates as long-term capital gains (instead of being taxed at the same rates that apply to ordinary income).
If you have any questions about the JGTRRA rules, give us a call.
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