TIPRA: new tax relief for individuals and businesses
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The Tax Increase Prevention and Reconciliation Act (TIPRA), which President Bush signed into law May 17, provides a variety of tax breaks that may apply to you. Specifically, it extends expensing rules for small businesses and tax-rate reductions on dividends and capital gains. It also temporarily protects some middle-income Americans from the alternative minimum tax (AMT), expands the kiddie tax to age 18 and makes it easier to convert traditional IRAs to Roth IRAs. Here is a summary of the act’s key provisions: SMALL-BUSINESS EXPENSING Under present law, the limit on the… |