Posted on Monday, December 20, 2010
With just 14 days before the Bush tax cuts were due to expire, President Obama this afternoon signed the $859 billion tax-cut-and-stimulus package that cleared the House late last night and the Senate earlier in the week. Before the final House vote of 277-148 clearing the measure to go to the White House, Democrats sought unsuccessfully to amend the package with less generous 2009 estate tax rates (45 percent rate/$3.5 million per person exemption).
President Obama this afternoon signed the $859 billion tax-cut-and-stimulus package into law.
The tax compromise, negotiated last week by Obama and Senate Republicans, will:
• extend the current tax law on income, capital gains and dividends for two years (until 2012)
• reinstate and extend a number of business tax breaks for one year (through 2011), including real estate-backed provisions to provide for 15-year depreciation of leasehold improvements and same-year expensing of brownfields cleanup costs
• provide immediate expensing of 100 percent of the costs of business assets whose depreciable life is less than 20 years (eligible assets include leasehold improvements); the provision applies to businesses of all sizes and to costs incurred after Sept. 8, 2010 and through Dec. 31, 2011
• allow 50 percent of the costs of similar investments made in 2012 to be expensed, with the balance of costs recovered via depreciation
• reduce Social Security payroll taxes by 2 percent for workers in 2011
• protect millions of Americans from getting hit by the alternative minimum tax (AMT)
• extend unemployment benefits for one year
Real Estate Roundtable