Federal Tax Relief Act of 2010

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act) was signed into law on
December 17, 2010.

This legislation did the following:

Extended most of the Federal extender provisions that expired at the end of 2009
Extended most Federal provisions ("Bush Tax Cuts") that expire at the end of this year (2010)
Added 100% bonus depreciation provisions
Provided for a Payroll Tax reduction for 2011
Reinstated the Estate Tax with new limits and Estate Tax Rate beginning in 2011

The following provisions were NOT extended and thus are not applicable for 2010 returns:

Additional standard deduction for Real Property taxes
Additional standard deduction for national disaster related casualty losses
National disaster relief provisions (except for bonus depreciation and Sec. 179)
Midwestern disaster relief provisions
Exclusion of first $2,400 of unemployment compensation from taxable income
Economic recovery payment
$250 Credit for certain government retirees

Extender and Alternative Minimum Tax (AMT) provisions that were extended for 2010 and 2011:

Educator Expense Deduction
Tuition and Fees Deduction
Itemized Deduction for Sales Tax
AMT exemption amount for 2010:

Single - $47,450
Married Filing Joint - $72,450
Married Filing Separate - $36,225

All personal nonrefundable tax credits allowed when calculating AMT
5 year depreciation for farming business machinery and equipment
15 year straight line depreciation for qualified leasehold restaurant and retail improvements
IRA distributions that are taken for charitable purposes remain tax free to the taxpayer
The 50% limitation continues to apply to contributions of capital gain real property made for conservation purposes
17 other business provisions that will be detailed in the near future

Bonus Depreciation

The Tax Relief Act added provisions to allow 100% bonus depreciation for part of 2010 and all of 2011. The bonus depreciation provisions for 2010 - 2012 are:

January 1, 2010 - September 8, 2010; 50% bonus depreciation
September 9, 2010 - December 31, 2010; 100% bonus depreciation
Calendar year 2011; 100% bonus depreciation
Calendar year 2012; 50% bonus depreciation

2011 Payroll Tax Reduction

The Tax Relief Act of 2010 will reduce the employee share of Social Security taxes (that are withheld from their paychecks) by 2%.

This will also affect the Self-Employment Tax calculation for 2011 by reducing it to 10.4%.

Our office is located at
5200 W. Market Street
Greensboro, NC 27409

Phone: 336-852-9505
FAX : 866-616-0471
email: taxservice@electrofile.com
website: ElectroFile Income Tax Service

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Office Hours
Dates		Days	Open	Close
Tax Season	January 12 - April 15	Mon - Fri	9:00am	7:00pm
Tax Season	January 12 - April 15	Sat	9:00am	3:00pm
Non-Tax Season	April 16 - January 09	Mon - Thurs Others by appointment.	9:00am 10:00am	2:00pm 4:00pm