The New “Fiscal Cliff Tax Legislation”—Preliminary Planning Issues
Author: Andrew S. Mason.; Saul Brander.; Eric Lopata.
Source: Volume 30, Number 03, Spring 2013 , pp.3-18(16)
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Abstract:
The American Taxpayer Relief Act of 2012, signed by the President on January 2, 2013, made significant changes affecting investors. Some of the changes affect only high-income individuals—for example, higher tax rates on ordinary income, most net capital gain, and qualified dividends; limits on the availability of itemized deductions and personal exemption deductions; and changes to estate and gift taxation. Other changes, such as the extension of favorable rules dealing with cost recovery, are more generally applicable. This article provides an overview of the most important developments affecting investors from that Act—as well as changes the Act did not make.Keywords: fiscal cliff, American Taxpayer Relief Act of 2012, extenders, tax rates, deduction limitations
Affiliations:
1: Sullivan & Cromwell LLP; 2: Sullivan & Cromwell LLP; 3: Sullivan & Cromwell LLP.