Bush Tax Cuts
What are the Bush tax cuts?Bush tax cuts are the saying that is used when speaking of the tax code for the United States that was passed during President George W. Bush’s term. The Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003 are considered to be part of the Bush tax cuts, each of these made its mark in the history of the legislature. The Jobs and Growth acts an accelerant to the Economic Growth and Tax Relief, and the two are often talked about in correlation to each other. It is important to note that the Bush tax cuts were set to expire at the end of 2010, by a two year extension was granted as part of the Tax Relief Unemployment Insurance Reauthorization and Job Creation Act of 2010. Read below where Experts have answered many questions pertaining to the Bush Tax Cuts.
Have the Bush tax cuts been extended past 2010?In some situations the Bush tax cuts have extended into 2012. For example the expiration for the Bush tax cuts that pertain to individuals is in 2013. An example of an individual’s tax cut would be capital gain tax that will continue to have reduced rates until 2013.
When the Bush tax cuts expire in 2013, what will happen in regards to estate tax?When the Bush tax cuts expire in 2013 all of the assets of an estate will be treated with a step up in basis. This makes the taxable basis for the asset the fair market value at the time of death the individual. For example if the estate has real estate and the real estate is sold, the fair market value of the house at the estate owner’s time of death will be the basis for capital gain. If the house was sold with no appreciation upon it then there will be no capital gain. The same would be true with any assets owned by the estate. With the Bush tax cuts there was a reduced capital gain tax.
Are gifts included in the Bush tax cuts?Often, gifts are included within the Bush tax cuts, also included are inheritance. The Bush tax credits were set to expire at the end of 2010, but have been extended and will expire at the end of 2012.
The Bush tax credits generally center around two specific acts that were passed through legislation by George W. Bush. These acts made reduced tax rates for things such as estate taxes and gifts. The Bush tax cuts were scheduled to expire at the end of the year in 2010, but were extended until the end of the year 2012 by President Obama through the Tax Relief Unemployment Insurance Reauthorization and Job Creation Act of 2010. Any questions regarding the Bush tax cuts may be directed to the Experts.