Estate and Elder Law

Estate Tax and Other Federal Tax Provisions Expiring on December 31st

The estate tax along with tax provisions like the annual alternative minimum tax patch, the deduction for state and local sales taxes, the $4,000 deduction for college tuition, a provision that allows taxpayers age 70-and-a-half or older to transfer up to $100,000 directly from an IRA to charity and the business R&D credit all expire on December 31, 2009.
In fact, due to congressional inaction 50 tax provisions, in all, will expire as reported by on December 22, 2009.
More than likely, Congress will pass legislation later in the year re-enacting most or all of these provisions and make them effective retroactively. 
However, tax planners should be aware of these lost provisions when preparing estimated tax payments in April 2010 and before making charitable gifts in early 2010.