What’s New for 2012
For an update on tax developments and a free download of the e-Supplement to this book, visit us online at www.jklasser.com .
|“Extenders” legislation delayed||Numerous tax breaks that expired at the end of 2011 had still not been extended to 2012 when this book went to press, with legislation on hold until Congress returns to a lame duck session following the 2012 elections. For individuals, affected tax breaks include the state sales tax deduction in lieu of state income taxes (16.3), above-the-line deductions for tuition/fees (33.12) and educator expenses (12.2), tax-free transfers from IRAs to charities by those age 70½ or older (8.8), the deduction for mortgage insurance premium (15.6), parity for transit passes/van pooling fringe benefits with parking benefits (3.8), the exclusion for cancelled principal residence indebtedness (11.8), and the credit for home insulation and other energy improvements (25.19). Extension legislation is likely to include many, but not all, of these personal tax breaks. Business tax breaks awaiting extension include the research tax credit and several employment-related credits (40.26), and first-year expensing and the 15-year recovery for leasehold, restaurant, and retail improvements (42.14). AMT relief will be part of the legislation. When this book went to press, Congress had not yet passed a “patch” for the 2012 AMT exemptions. Without the patch, the exemptions will drop drastically ...|