Tax Legislation - Just Make a Decision!

Could somebody please, please just make a decision?  Please...with cherries on top!  The "somebody" to whom I refer is our esteemed Congress, who is leaving poor tax planners (like moi) hanging out there in the wind, unable to answer the simplest of tax questions.  Say for instance, that you asked me whether tax rates are definitely going up in 2011.  I would have to say that I don't know.  Although earlier in the year, it appeared to be a "no brainer", there's a possibility that lawmakers may backtrack and extend the Bush tax cuts for one more year into 2011.

And then there's the estate tax...is there or isn't there?  The estate tax was supposed to be repealed for 2010, but with the media focus on the tax bill of a certain well-known dead rich guy, Congress is taking a look at retroactively reinstating the death tax or at least some sort of hybrid.
 
We earlier reported on the proposal that would assess self-employment tax on S-Corp profits.  It looks like this might be on a road to nowhere, at least for 2010.  Experts think the issue will resurface in the future.
 
And for a little positive news...Insiders think that Congress will restore the break for direct IRA payouts to charity in 2010. This easing allows seniors who are at least 70 1/2  to make donations of up to $100,000 a year from their IRAs.  Payouts are neither taxed not tax deductible.  Final action will come later this year.

Download a word version of this blog here